Paying off your own home?

[Scott Schuetz]

I've recently left my long term real job. I'm now working full time as a realtor and investor. I've got my living expenses pretty low, but still trying to get used to the idea of not having a steady stream of paycheck income. I owe about $100k on my residence. P&I is $525 with about $350 going to interest and $175 to principle. I can pay off my home, but that takes up most of my investing reserves. I know I could probably use that money to earn more money but I keep coming back to the idea of paying off my home. Has anyone paid off their home just to feel more mentally secure?

[Rich Weese]

I've always looked at this a bit differently. I feel secure having a residence free and clear. I like the sense of security. However, it is NOT where I live. The only reason to have one free and clear is to enjoy the feeling of not losing a home if problems arise, imo. have always had a home F&C to move into if needed. This allows me to live in a nicer home and receive some tax benefits for interest etc that I don't get if F&C. I still get some help on rental from depreciation. I also use multiple entities for ownership, but that wasn't the topic...

Extra thought- Never have your F&C home be a condo. They're NEVER F&C due to regular HOA fees and those dreaded "special assessments". I also make sure I have enough Cash to pay taxes, insurance etc if economy really tanks. I like feeling prepared for the worst but continue to hope for the best. Rich