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Originally Posted by Xazy
Not sure I agree with pay your mortgage off as fast as you can, my rate is 4.875, I have no desire to pay 1 extra penny a month, between the low rate and the tax savings it is worth it to keep and use the money for other investment opportunities.
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Of course, individual situations vary. I hope you're locked in at that rate; it's great. But I'm not sure how many people are that fortunate....
The added benefit of the mortgage strategy is that it's virtually risk-free. You have a good rate, but I've seen current rates range between 5.5% and 7.65%. These rates are moving closer to the performance of mutual funds and other investments. The difference being the risk factors. How many risk-free investments do you know that give you as much as 7.65% return? I think you're lucky to get 4% with a government bond.
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
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