With roughly $220k on hand and a $149k mortgage at 3.25% for 15 years, clearing the debt could free up about $1,200 monthly. Is this a smart move?
In my view, leveraging cash to eliminate a mortgage can prove beneficial if you prefer a guaranteed reduction in your monthly financial commitments. Paying off debt offers a certain return through interest savings, and from my personal experience, it provides peace of mind knowing that your liabilities are cleared. It is essential, however, to maintain a sufficient cash reserve for unforeseen expenses after settling the mortgage. Balancing the benefits of debt reduction with liquidity needs is advisable before making a final decision.
I appreciate the dilemma! While clearing a mortgage seems attractive, have you weighed the benefits of retaining a safety buffer? Also, exploring alternative investments might be worth it. What risks do you see if unexpected expenses arise, and how might you adjust your strategy?
hey, clearing your home loan looks neat but don’t dump all cash. i’d keep a bit for those rainy days & maybe invest any extra. balancing is key when risks hit, ya know?