I’ll be the first one to tell you that debt is evil and bad. It will:
- keep you awake at night with worry
- possibly hurt your credit score
- encourage you to call your ex-girlfriend/boyfriend after drinking one too many
- hit on your husband or wife when you have your back turned
All of that is true, but there is one form of debt that I tolerate, mortgage debt.
I Love you Mortgage
I bought my house in 2013 for about $175,000. Because I was a saver and my family was downsizing, we could have paid cash for the home. I ran the numbers and determined that I’d probably be much better off if I put 20% down and kept the rest invested.
The experiment has worked out well. I’m not even 3 years into the mortgage and the money I’ve made off my investments is almost equal to what I’ll pay in interest over the 15 year life of the loan. Soon, even before the year is out, I may be in the black.
Despite this fact, the decision to pay off a mortgage is a contentious one. Just look at these comments I “borrowed” from another article on the matter:
My goal is to have the biggest pile of money decades from now. I will not deny that having a paid off home provides for peace of mind, but you know what provides even more peace of mind?
A HUGE PILE OF MONEY!!!
Under most circumstances, I’m not a fan of using leveraging debt for investing. However, in the current low rate environment, this decision is a no-brainer for the smart, long term investor.
So anyway, I wrote all about it over at Investment Zen. Click over to see all of the juicy numbers. Even my very conservative calculations show that I’ll mostly likely end up far, far ahead by taking on mortgage debt.
And you Debt, knock it off! Don’t think that I didn’t see you looking at my wife’s ass!
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