We must first acknowledge that this is a personal choice and that everyone has a different situation.
Currently, I have a 30-year fixed-rate mortgage at 2.75%. I do not plan on ever having an additional premium payment because I believe that I can earn a rate of return over the next 30 years that exceeds 2.75%.
However, I understand the psychological benefits that can be derived by being debt-free (especially before retirement).
In general, the past 10 years have been particularly good for individual investors who have invested in a broadly diversified portfolio.
Does it now make sense to take your earnings and pay off the house? Possibly.
If you do, just make sure to automate your newfound savings and turn around and re-invest those funds to rebuild your nest egg.
Information in this material is for general information only and not intended as investment, tax, or legal advice. Please consult the appropriate professionals for specific information regarding your individual situation prior to making any financial decision.
Historical performance is no guarantee of future results. All investing involves risk including loss of principal.
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