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  1. #1

    Does it make sense to pay off the house?

    Hello, all! I realize there may be a number of answers to this question, but generally speaking: Does it make sense to cash out one's stock portfolio to pay off a home mortgage?
    I just think it would be so liberating to know my home is fully paid for. And with the market as it is, it seems i'm just watching day by day as the value of investments gets lower ... and lower ... and lower ...
    Any thoughts?

  2. #2
    In my opinion it does, but most won't agree with that. You can lose your money in the stock market or someone can sue you and get your cash. If your house is paid for, no one can take it away from you except the IRS....if you pay your taxes, no threat there. If I should run out of money in my "Golden Years" I can always downsize my home if I have to and have cash or get a reverse mortgage. I live in a patio home and am surrounded by seniors, mostly widows and they are very insecure because of the house payments and taxes on their home constantly rising.

  3. #3
    I suppose the basic considerations would be how big is the mortgage balance and how many more years yet to pay? And then, with the portfolio gone, how many years will it take to rebuild a cushion you're comfortable with? I seem to recall your user name from the Landscape Design Forum - isn't your home brand new?

  4. #4
    I probably shouldn't be weighing in on this at all since I inherited the family home with the mortgage long since satisfied. I can truthfully say it is liberating (having had previous homes and mortgages) to be responsible only for taxes, maintenance, and the routine costs of home ownership. But on the other hand, and if my situation were different, despite the ups and downs, a well diversified portfolio is something I would be loath to raid unless my back was against the wall. However, if you're heavily invested in stocks only and they're all losing; getting out of the market would stem the bleeding in your case.

  5. #5
    Oh, duluthinbloomz4, what a nice feeling to be in the home you grew up in! Solidarity with the past, and all that ...
    Thanks, everyone, for your feedback. Yes, this home is just three years old, and still feels "new" because we're so frugal and do things so slowly.
    As i expected, i guess there really is no hard and fast answer, as everyone's circumstances and comfort levels are so varied.
    Thanks again, all!



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