# Good read on not paying mortgage down faster **URL:** \ **Category:** NYSpeed Off Topic\ **Created:** [February 24, 2012, 9:56am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746 "2012-02-24T09:56:00Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![neonglh](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/neonglh/32/4951_2.png) [@neonglh](https://forums.speedlife.net/u/neonglh)\ **Post date:** [February 24, 2012, 9:56am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/1 "2012-02-24T09:56:00Z")
[http://money.msn.com/home-loans/do-not-rush-to-pay-off-that-mortgage-weston.aspx](http://money.msn.com/home-loans/do-not-rush-to-pay-off-that-mortgage-weston.aspx) Interesting article, with actual studies to back up the text, saying how you’re much better off taking any extra money that you would use to pay down mortgage faster, and using it to do any number of things, from maxing out your retirement plan, to paying down pretty much ANY other debt first. Cliff notes, by using write-offs fro your mortgage interest, your 5% mortgage lowers to closer to 3.5%, which is better than probably any other loan you’d get. And, the money you pay over the 30 years or so, will probably be fully negated by inflation. In the meantime, you can use that money in the markets, put inflation and smart investments on your side, and retire VERY comfortable. Any other thoughts on this topic? ---
**Author:** ![JayS](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/jays/32/15375_2.png) [@JayS](https://forums.speedlife.net/u/JayS)\ **Post date:** [February 24, 2012, 10:06am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/2 "2012-02-24T10:06:40Z")
That article is BS. I’m draining my 401k and taking a credit card cash advance to refi my house @ -1% for 5 years. ---
**Author:** ![Beck](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/beck/32/28683_2.png) [@Beck](https://forums.speedlife.net/u/Beck)\ **Post date:** [February 24, 2012, 10:07am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/3 "2012-02-24T10:07:20Z")
> [@JayS](#): > > That article is BS. I’m draining my 401k and taking a credit card cash advance to refi my house @ -1% for 5 years. \<3 HAHAHAHA. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 24, 2012, 10:20am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/4 "2012-02-24T10:20:48Z")
the article is right on the money except for two things: - there are a lot of loans cheaper than home loans right now. (car loans at \< 3% for example) - If you’re paying PMI it might help to get to 20% since the markets are not showing returns that will beat that 50-150 a month pissing away of money for most people. still most people get all caught up in trying to pay off a house at the expense of putting more into retirement funds while prices are SUPER LOW. ---
**Author:** ![neonglh](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/neonglh/32/4951_2.png) [@neonglh](https://forums.speedlife.net/u/neonglh)\ **Post date:** [February 24, 2012, 10:29am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/5 "2012-02-24T10:29:27Z")
I’m currently putting in a total (with employer contributions) of 14% of my salary into my 403b, but I think I am going to increase it to 16% in June, and then as I feel comfortable, continue to increase it. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 24, 2012, 10:32am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/6 "2012-02-24T10:32:52Z")
just don’t forget the golden rule. First contribute as little as is needed to get your full match at a work. Then max out an IRA (ROTH IRA is my preference, I highly recommend Vanguard for this) Then come back to your employer’s plan if you have more money to put in. ---
**Author:** ![TradersBASE](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tradersbase/32/5321_2.png) [@TradersBASE](https://forums.speedlife.net/u/TradersBASE)\ **Post date:** [February 24, 2012, 10:41am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/7 "2012-02-24T10:41:37Z")
My brief 2 cents…don’t be like most of America & bank 100% on paper assets. IRA and 401k/403 are fine but remember they are purely perceived value and could be worth $0 potentially. Diversify and spread out your risk on some level with tangibles. Also remember that it’s tough to have fundamental growth in paper asset value when the nation is so far in debt and diluting our spending power. If you don’t understand nominal value and how $1 is not always $1 then study up on that a bit. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 24, 2012, 10:47am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/8 "2012-02-24T10:47:12Z")
you recommended what not to do, what would you recommend to do? we talking gold bars under the bed glenn beck style? ---
**Author:** ![TradersBASE](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tradersbase/32/5321_2.png) [@TradersBASE](https://forums.speedlife.net/u/TradersBASE)\ **Post date:** [February 24, 2012, 11:04am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/9 "2012-02-24T11:04:26Z")
> [@theblue](#): > > you recommended what not to do, what would you recommend to do? > > we talking gold bars under the bed glenn beck style? I’m not looking to plan estates for folks or advise them in specific terms. I’m not credentialed to do so, nor am I compensated for offering advice. 😉 I’m just suggesting diversification on some level, involving tangibles. Tangibles can be things like guns, ammo, metals, food, water etc… My opinion on gold…it’s priced beyond most people’s means. You can’t hunt with it, you can’t eat it and it has limited fundamental value. Just my 2 cents, not Glen Beck’s. LOL ---
**Author:** ![cougarspeed](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/cougarspeed/32/7468_2.png) [@cougarspeed](https://forums.speedlife.net/u/cougarspeed)\ **Post date:** [February 24, 2012, 11:08am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/10 "2012-02-24T11:08:07Z")
This thread has had some hilarious responses so far(in a good way im srs) almost peed myself on the JayS zing hahahaha Glen Becks LOL just thinking of that guy given a chuckle ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 24, 2012, 11:08am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/11 "2012-02-24T11:08:10Z")
sounds like fully depreciated old german cars are a good investment 😃 what’s the ratio of Glenn Becks to Nypeed Becks these days? ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [February 24, 2012, 11:10am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/12 "2012-02-24T11:10:02Z")
What the fuck are dollars? Pls convert to Becks for clarification. ---
**Author:** ![cougarspeed](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/cougarspeed/32/7468_2.png) [@cougarspeed](https://forums.speedlife.net/u/cougarspeed)\ **Post date:** [February 24, 2012, 11:14am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/13 "2012-02-24T11:14:14Z")
1xStandardBeck\*(obama is muslim\*trickle down/jews corrupt media) - bailouts money returned = 1xStandard Glen Beck ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 24, 2012, 11:15am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/14 "2012-02-24T11:15:55Z")
> [@theblue](#): > > what’s the ratio of Glenn Becks to Nypeed Becks these days? I just did the math and there are 457.1428571428571 NYspeed becks to 1 glenn beck based on 2010 earnings. surprisingly neither came primarily from fox news. ---
**Author:** ![TradersBASE](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/tradersbase/32/5321_2.png) [@TradersBASE](https://forums.speedlife.net/u/TradersBASE)\ **Post date:** [February 24, 2012, 11:19am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/15 "2012-02-24T11:19:48Z")
> [@cougarspeed](#): > > 1xStandardBeck\*(obama is muslim\*trickle down/jews corrupt media) - bailouts money returned = 1xStandard Glen Beck LMFAO ---
**Author:** ![boardjnky4](https://avatars.discourse-cdn.com/v4/letter/b/96bed5/32.png) [@boardjnky4](https://forums.speedlife.net/u/boardjnky4)\ **Post date:** [February 24, 2012, 11:21am UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/16 "2012-02-24T11:21:03Z")
LOL also, I have a 0.9% loan on my wife’s car… yayy for practically free loans! ---
**Author:** ![neonglh](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/neonglh/32/4951_2.png) [@neonglh](https://forums.speedlife.net/u/neonglh)\ **Post date:** [February 24, 2012, 12:04pm UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/17 "2012-02-24T12:04:50Z")
I am pretty sure that a 403b is pretty safe! Aaron, what’s the deal with the IRA over the 403b, it’s the tax-free when pulling it out, right? I have Vanguard for my 403b currently. ---
**Author:** ![theblue](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/theblue/32/5074_2.png) [@theblue](https://forums.speedlife.net/u/theblue)\ **Post date:** [February 24, 2012, 12:19pm UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/18 "2012-02-24T12:19:33Z")
anything roth = pay in after tax = free to pull out normal distributions. The deal with going to a ROTH IRA as much as possible ($5000/year if under $107k income) is that you have the following advantages: - you can take the money you put into it out anytime without any penalties or fees (but you can’t take earnings out, only what you put in) - 100% tax free money growth (but don’t forget you fund it with money you have already paid taxes on) - you often have more options on funds you can buy - often the funds have a cheaper cost to maintain. - roth ira doesn’t have a minimum distribution per year when retired like a 401/403 - when you die it can transfer tax free I’m sure there are more. ---
**Author:** ![neonglh](https://yyz2.discourse-cdn.com/flex034/user_avatar/forums.speedlife.net/neonglh/32/4951_2.png) [@neonglh](https://forums.speedlife.net/u/neonglh)\ **Post date:** [February 24, 2012, 12:28pm UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/19 "2012-02-24T12:28:52Z")
Good to know! ---
**Author:** ![MOBOOST4U](https://avatars.discourse-cdn.com/v4/letter/m/f4b2a3/32.png) [@MOBOOST4U](https://forums.speedlife.net/u/MOBOOST4U)\ **Post date:** [February 24, 2012, 12:43pm UTC](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746/20 "2012-02-24T12:43:50Z")
Great article although much of it is sort of common sense when you think about it. What I did particularly like is this point which I think is super easy to forget when youre talking about longer loans these days. > [@neonglh"](#): > > the money you pay over the 30 years or so, will probably be fully negated by inflation. In the meantime, you can use that money in the markets, put inflation and smart investments on your side, and retire VERY comfortable. Im sort of surprised more people who are actually financially capable of making early payments dont grasp these concepts. [Next page](https://forums.speedlife.net/t/good-read-on-not-paying-mortgage-down-faster/220746.md?page=2)