Should I use my savings to eliminate my home loan?

Mortgage
1

Hey everyone, I’m in a bit of a pickle and could use some advice. I’ve got about $220k in savings and I’m wondering if I should use it to pay off my mortgage. Here’s the deal:

  • Mortgage balance: $149k
  • Interest rate: 3.25%
  • 15 years left
  • This is our forever home
  • My income: $120k/year
  • 401k balance: $280k (I’m 37)
  • I also get a pension
  • Wife stays home with our 3 kids

Paying off the mortgage would free up $1200 a month. I know investing might give better returns, but I’m really tempted to get rid of the debt. Am I crazy for considering this? What would you do in my shoes? Any other ideas I should think about?

I’m torn between financial logic and the peace of mind of being debt-free. Help me out, folks!

2

hey man, i was in a similar spot last year. honestly, that peace of mind is priceless. i paid off my mortgage and don’t regret it. yeah, maybe coulda made more investing, but sleeping better at night? worth it. Plus, that extra cash flow is sweet. just make sure u keep some savings for emergencies tho!

3

Hey there! Have you thought about splitting the difference? Maybe pay off half your mortgage and invest the rest? That way, you get some peace of mind AND keep some money growing. Just curious, what’s your wife think about all this? Her input could be super valuable here!