We define "Mortgage Independence Day" differently than your parents or grandparents did. Rather than having your loan paid in full, we prefer to identify "Mortgage Independence Day" as the day when you have enough money , IN A SEPARATE ACCOUNT, to pay off the home loan...IF THAT IS WHAT YOU CHOOSE TO DO. We think that lots of cash in the bank (or investments) is the ultimate form of independence.
It appears that our mantra of equity splitting and investing for your future is catching on. The New York Times ran an article about Baby Boomers who are rejecting the traditional Boomer Economics model for our Asset Optimization Strategy.
Back in the dark days of Jimmy Carter, I had an 8% mortgage. Mortgage rates in 1981 were sky high and the bank tried desparately to get me to refinance out of that loan. I belive I got the last 8% loan around in 1976. As soon as Carter got in office, rates skyrocketed.
The bank offered to refinance me to a 4.5% loan if I would agree to reduce to term to a 15 year am.
I would have taken them up on it if I had been planning on keeping that property.
Interesting.
Mortgage money is still cheap, cheap, cheap!!!
If you can put extra in stocks instead of mortgage, you would probably come out a winner
Brian,
Have a great fourth!
Bill
Brian,
Thanks for the post. I am in total agreement, it is all about the options! Have a great 4th.