If you have prepaid, the bank / mortgage holder may be more likely to work with you.
I got my house paid off the same month as I was laid off (after 10 years and no notice) - made a big difference the ‘after’ part.
I look at it as the house is now paying me $1K a month in rent avoidance.....in other words I can afford to take a job that pays less (and offers more satisfaction) without the monthly rent payment hanging overhead.
They missed another point - what if you loose your job?
THAT is one big point that always seems to be missed. IMO- mortgages are not beneficial to the person who has to pay, it is only beneficial to the lender. People tell me about the "tax write-off" or some other silly benefit they get from having a mortgage, and I laugh. What they mean to say is: I never did the math required to determine how much I would have to pay over the life of the mortgage that has a minimum down payment.
It's always better to pay it off as soon as possile.
There are people paying that much or more in real estate taxes. We were paying that much in the 1980's! We moved to a rural area in another state and started paying peanuts. Currently about $30 a month goes to taxes, on a house larger than 3000 sf.
“They missed another point - what if you loose your job?”
Actually, the forecasting I did gave an advantage to investing on this point. By investing the money in a semi-liquid way, I would be able to make it for much longer with an investment versus paying down my mortgage if I lost my job.
If I put all my extra in the mortgage, I have to go to the bank right away and ask for mercy. The longer I continue to put the money in an investment, the longer I can go without needing any other income to make the payment. In addition, I can use the liquidity to pay other expenses if I decide to do so.
The fact that mortgages are no longer local adds to my uneasiness with depending on them to provide some relief because I’ve been making additional payments.
“I look at it as the house is now paying me $1K a month in rent avoidance.....”
As an aside, during the last Clinton administration, there were serious major policy discussions on making such ‘rent avoidance’ taxable income. The idea was that they would determine the fair market value of what it would cost you to rent your home. Then, they would deduct your mortgage payments leaving the ‘imputable income of rent avoidance’. This amount would be added to your real income to determine your Adjusted Income for tax purposes. All in the name of making the tax code fairer (and increasing revenue too).
You are sooooooo right.
Because we have done the same thing, I was able to take another job that I love because I know I soon don't need the job I hated to pay a house payment.
No one on FR could convince me to go back to the other way.
Congrats on your new and better lifestyle.