The last 3 months have been a whirlwind of new.
New House. New Job (woot! New job!)
While all of that is super excellent, that first one came with a big piece I wasn’t so excited about.
It has been nearly 2 years since I paid off my student loans. That’s a feat I still can’t fully wrap my head around. I still have my car loan but it’s chugging away at 1% and the balance is under $4000!
Now I have an additional $172,000 worth of debt.
I knew we were going to have a mortgage on our house. That was inevitable. I certainly wasn’t going to save forever to buy a house in cash. Who has time for that?
I thought I was okay with the mortgage. For 90% of me, I am. I’m cool. The mortgage is reasonable. Our payment is less than we pay in rent. We put 20% down. The interest rate is awesome (3.375%!) All of that screams “Let it ride!”
The payment is great. Adjusting for inflation, it will look even better as the years pass. It’s also pretty cool that it’ll be paid off before I’m traditional retirement age. That’s the goal right?
For the past few years when I read about people paying off their mortgage aggressively, I didn’t get it. If I can get better returns in the stock market, and I’m sure I can beat 3.375%, shouldn’t I be investing? That’s what my brain says.
But my heart is starting to disagree.
Having a mortgage until 2047 is kind of ugly. I’ll be 60. That’s twice my age from now. I have been on the planet only 3 months longer than the amortization schedule of my mortgage! My mom had a 3 month old me 30 years ago and I just signed up for debt that long.
I’m going to say No to that option.
I’m not jumping on the KILL IT IMMEDIATELY train. I have investing to do.
I’m sure I’ll come up with some crazy game to play to pay it off early.
For now I say…
SUB-2047 OR BUST