[Alberta's Child]

I would advise anyone who is reading this thread to do some homework and get a decent understanding of two financial terms: LIQUIDITY and OPPORTUNITY COST.

In simple terms … paying off a 3% mortgage ahead of time and giving up the opportunity to earn 7% on your money makes no sense unless you really just have an aversion to being in debt under any circumstances.

[cgbg]

“unless you really just have an aversion to being in debt under any circumstances.”

That is me—the pleasure of having no debt is worth a billion bucks to me.

I don’t need to be rich—but I do want to be happy.

[Notthemomma]

What are you smoking?

So CONTINUING to pay your mortgage with a 3% penalty while investing any EXTRA money you have, to try to earn, MAYBE 7% but LESS CAPITAL GAINS TAX, if the market doesn’t crash....

is better than....

Pay off the mortgage, keep your 3% penalty, invest THAT money you would have been paying for the mortgage and interest, PLUS any extra money, to try to earn 7% yada yada.

Really?

Really poor math.