Burn baby burn. That’s our goal! Jeanine and I want to pay off our mortgage in the next ten years. If I had my druthers, it would be sooner. Why? Living in a home that’s paid for will alter our life. Here are five reasons why:
1. I gain peace of mind. There is something to be said about owning our most significant asset outright. Until this happens, this asset is technically a liability.
2. I no longer have to worry about job loss. Our biggest monthly expense is our mortgage. If Jeanine or I lost our job, we’d have to dip into our savings to cover this cost. If this expense was eliminated then our ability to survive without income increases dramatically. This is a true freedom.
3. It reduces my cost of living. There are two paths to wealth. Increase income or reduce your expenses. Do both and you’re set.
4. It’s a smart bet. I know I’m getting a good return on my investment when I’m using it to pay off my mortgage.
5. The tax deduction is overrated. We still have a big mortgage and believe you me; the tax deduction comes in handy every time tax day rolls around. That said, in my opinion, the 4 benefits listed above outweigh any justification (including the mortgage-interest deduction) for not paying off our mortgage as soon as possible.
What are your plans? Do you hope to pay off your mortgage eventually? Or can you relate to these people profiled in this recent NPR segment about why mortgage-burning parties are almost extinct?
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