[OhMyGoat]

Although 98k minus 45k sounds good, the equation is missing the growth potential that the retirement investments will bring over time.

A 5.35% mortgage is a bargain. I spent a lot of years paying off my mortgage that was 9.75% and we made it through. Be patient. For a regular family (not independently wealthy) a home usually takes years to pay off. I would never draw down an IRA or 401k to pay down a mortgage. Nor would I borrow against them.

[PonchoV8]

I paid my first house off and it felt great. I'm watching a friend try to keep up with the Jones' and is buried so deeply in debt, it scares me. You get used to it seems--and then again you don't.
We ended up taking an equity loan to buy a second house to remodel. When it got down to a certain level, I surfed it to a credit card with a lower interest.

Our current house is the one that's 16 yrs out in a conservatively aggressive pay off schedule. We could liquidate some stuff if needed and get back to zero (assuming those things still have value). It's a risk I'm taking, and feel very much like you feel right now about.

[1967Clone]

Originally Posted by OhMyGoat

Although 98k minus 45k sounds good, the equation is missing the growth potential that the retirement investments will bring over time.

Yes BUT his mortgage payment could then be used to replace the "lost" investments. That's what I've done and it's worked out GREAT.

[GTOGreg]

I think he was referring to the penalties and the growth opportunity those would bring over time.

[Supertacks]

So I have decided against this route.

In short I own a property at the beach. I bought it as a fixer upper 4 years ago with the idea that it would take 5 years to get it where I want it. So far I am right on schedule.

Although it is close to being done . . . I could not sell it "as is" and pull the sweat equity out of it.


What I decided to do is take out a small loan and hire someone else to finish it over the next three months.

That way if I need to move it quick, I can flip it and be done with it.

I do appreciate all the feedback however!

[PonchoV8]

Probably the route I'll take too. I have properties that still need work. I was doing it all in cash, but I'm leaving money on the table in lost income from rentals. If they were paying, I'd be paying my house payment with that income.
My sister bought a condo overlooking Shipwreck Bay on Kaua'i that pays for itself and they get to stay there for free when in town--so will I.