should we pay off house
we are now retired and wondering if we should pay off the house. some say never pay the house off, not really sure why. house interest is 4.3% can only get 3% guaranteed interest on money. in...
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Some say never pay off the house because the typical return on long term investments is well above what you're paying interest.
Remember though: the effective interest rate on the house is reduced as you can write off the interest payments.
If you're really going to have that money sitting in a 3% interest bearing account, yes, you may be better off paying off the house, but it's right on the line... Probably within 1% spread either way.
If that money is sitting in long term investments such as index mutual funds and you won't have immediate need of it, don't pay off the house..
Course, you should ask someone else for their opinion. Start with people who are not trying to see you investment products.
Some say never pay off the house because the typical return on long term investments is well above what you're paying interest.
Remember though: the effective interest rate on the house is reduced as you can write off the interest payments.
If you're really going to have that money sitting in a 3% interest bearing account, yes, you may be better off paying off the house, but it's right on the line... Probably within 1% spread either way.
If that money is sitting in long term investments such as index mutual funds and you won't have immediate need of it, don't pay off the house..
Course, you should ask someone else for their opinion. Start with people who are not trying to see you investment products.
