Related Posts
How is WLB at JPMC, Mumbai for CIB?
Don’t bring that sneeze around me...

Additional Posts in FIRE Financial Independence Retire Early
Decided to payoff my mortgage.
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.



Would definitely not pay off a 3.2% mortgage and would continue with regular payments. You’re very very likely to out earn 3.2% (and probably by a lot) by investing in even just a broad based index fund
Treasury bonds wouldn’t be a good idea in this case. After taxes on any gains, at best, you’d be at a wash.
Other investments would probably make more in the long run, but there’s still risk and taxes, and the equation still doesn’t include the emotional aspect.
When you’re debt free and no mortgage, life’s just different, it’s very freeing. Getting laid off while the market is down would just be an inconvenience, whereas if you still had the mortgage, you’d still have that mandatory monthly payment (and that’s usually most people’s largest monthly expense, and it’s fixed), and you may be forced to sell at a loss.
I think that mortgage interest rate you have is at the point where it’s pretty close either way, so ultimately it comes down to your risk profile and personal preference. And if you decide to keep the mortgage around and continue to pay the bank interest, at least keep the mortgage balance invested wisely and don’t spend it.
Personally, though, anything above 3%, I’d choose to just pay it off and never look back. I value the freedom that it gives.
I would easily invest that money into the market. I would never pay off a low interest mortgage.
I’d like to sign up for the receive $1m plan.
Also would absolutely not pay off 3.2% early. I’m not paying off my 6.75% early lol.
Fair
Invest 100%
Bowl Leader
How close are you to retiring?
Still plenty of HYSAs and CDs out there that yield higher than 3.2%. Probably wouldn’t pay it off personally.
I’m 34 so not that close haha
Subject Expert
Like everyone else here, I would just invest it.
$1M in the market will go far!
That 3.2 may also have some tax benefits too. In any event if that is on 30 year fixed that is probably the cheapest financing you may see.
Sure, negative arbitrage is a fine investment plan. It’s always a good idea to get a 3.2% return when money market accounts pay over 3.5%.
At 3.2 hell no, it’s free money
Thanks all