Quote:
Originally Posted by Barbecue
Not sure when you said "against a single house" if you meant a built portfolio using leverage on the house or comparing a built portfolio vs putting all the money towards in the house...
in any case, when it comes to investing, i'd rather my break even point to be at 0% instead of 3% or whatever the mortgage rate is. Leveraged investments is risky and you always have to assume the risk tolerance for the OP is weak
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I said against a single house because that's what it is: one house. That specific house might be awesome, or might be average, so who knows whether it's a better investment than the other houses on the street or in the city? It just happens to be the house you have a mortgage on currently, and you live there. So what I'm saying is that investment wise, and purely investment wise, we have no idea whether it's a good investment or not. And theoretically you might save three percent in interest on that $150k, but you could easily surpass that in the market.
I should note that although you don't seem to think it's possible, advisor's will give advice based on a situation and not only whether they stand to profit. I would say that if the person here was close to retirement and the decision was to pay off their 'forever' house entirely I might provide different advice. To me that's a completely different situation. I take this as a guy a couple decades or more away from retirement, paying a mortgage and maybe staying in the house, maybe not. That doesn't scream pay the mortgage down to me, because it's basically savings for the next house, if that makes sense?