Comments on: Prepaying your mortgage may not make sense http://asklizweston.com/2009/11/16/prepaying-your-mortgage-may-not-make-sense/ Personal Finance Columnist Mon, 08 Mar 2010 11:40:55 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: lizweston http://asklizweston.com/2009/11/16/prepaying-your-mortgage-may-not-make-sense/comment-page-1/#comment-776 lizweston Tue, 24 Nov 2009 20:27:54 +0000 http://asklizweston.com/?p=1577#comment-776 If someone is planning to walk away from a devalued property, I can see your point. If she's not, though, I wouldn't count a lower housing price as a reason not to prepay a mortgage. Or perhaps I'm missing something? If someone is planning to walk away from a devalued property, I can see your point. If she’s not, though, I wouldn’t count a lower housing price as a reason not to prepay a mortgage. Or perhaps I’m missing something?

]]> By: Tax Lawyer http://asklizweston.com/2009/11/16/prepaying-your-mortgage-may-not-make-sense/comment-page-1/#comment-774 Tax Lawyer Tue, 24 Nov 2009 01:40:01 +0000 http://asklizweston.com/?p=1577#comment-774 Paying off your mortgage might normally be something wise for a retired person. But with housing prices plummeting in many parts of the country, I would not recommend paying off your mortgage. It may work well for some, but not for most. Paying off your mortgage might normally be something wise for a retired person. But with housing prices plummeting in many parts of the country, I would not recommend paying off your mortgage. It may work well for some, but not for most.

]]> By: lizweston http://asklizweston.com/2009/11/16/prepaying-your-mortgage-may-not-make-sense/comment-page-1/#comment-745 lizweston Mon, 16 Nov 2009 19:30:55 +0000 http://asklizweston.com/?p=1577#comment-745 The argument about prepaying mortgages often revolves around the returns you could get investing the money instead, but I think that distracts from the more important issues of financial flexibility and how well your other bases are covered. Before you start prepaying your mortgage you need to make sure you're on track saving for retirement and your kids' college educations (if the latter is an important goal for you), that you've paid off all other debt, that you have an emergency fund and that you're adequately insured (life, health, disability and maybe long-term care, depending on your situation). Most people will have their hands full getting all that done and still having cash left over to live their day-to-day lives. The argument about prepaying mortgages often revolves around the returns you could get investing the money instead, but I think that distracts from the more important issues of financial flexibility and how well your other bases are covered. Before you start prepaying your mortgage you need to make sure you’re on track saving for retirement and your kids’ college educations (if the latter is an important goal for you), that you’ve paid off all other debt, that you have an emergency fund and that you’re adequately insured (life, health, disability and maybe long-term care, depending on your situation). Most people will have their hands full getting all that done and still having cash left over to live their day-to-day lives.

]]> By: Evolution Of Wealth http://asklizweston.com/2009/11/16/prepaying-your-mortgage-may-not-make-sense/comment-page-1/#comment-743 Evolution Of Wealth Mon, 16 Nov 2009 17:44:28 +0000 http://asklizweston.com/?p=1577#comment-743 I wrote a similar post called "Your Mortgage: When 30 beats 15" http://evolutionofwealth.com/2009/09/15/your-mortgage-when-30-beats-15/ I was talking about the same thing you are of course I didn't mention using mutual funds because I don't think I could ever give anyone advice that would put money they definitely needed at risk. Do you feel like mutual funds would be risky for the someone? I wrote a similar post called “Your Mortgage: When 30 beats 15″ http://evolutionofwealth.com/2009/09/15/your-mortgage-when-30-beats-15/

I was talking about the same thing you are of course I didn’t mention using mutual funds because I don’t think I could ever give anyone advice that would put money they definitely needed at risk. Do you feel like mutual funds would be risky for the someone?

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