My uncle in Tampa insisted his whole life that paying off a 2.5% mortgage early was the smartest move, and I finally told him he was throwing away free money.

He looked me dead in the eye at a family BBQ last summer and said, 'I sleep better knowing the bank doesn't own my roof,' which made me realize some financial advice just ignores basic math for peace of mind.

3 comments

3 Comments

jade61823d ago

Margaret_lane i get what you're saying but Honestly sleeping better is good and all but let me tell you. My buddy Dave had a similar thing where he paid off his 3% car loan early to feel good and then his AC blew up and he had to put the repair on a credit card at 22%. He was NOT sleeping well those nights let me tell you. Its like yeah you feel good about no debt but what if something HAPPENS and now you need cash but you threw it all at the loan. Sometimes the math really does beat the feeling.

wyatt_perez791mo ago

Wait, he had a 2.5% mortgage and paid it off early?

margaret_lane1mo ago

Honestly, I get it. For some people, the peace of mind is worth more than the potential investment returns.