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MikeWPhilly t1_j9yu684 wrote

Happy for you and paying off anything will obviously create more wealth. Nobody would ever say it’s bad. That said as an alternative story:

2016 - Built a new home for $440k. Getting married within 2 weeks of settlement so not fun timing but early new construction so good buy. I could have sold our $160k condo to avoid PMI (Only 10% down) and reduce payment stress but kept to rent. 2017 - new jobs household income up $40k. Early 2018 - paid off condo now our mortgage is as cheap on home as condo was thanks to rent cash flow. Late 2018 - Appraise home to remove PMI ($525k)

Now since then we could have paid off main home. Instead we bought several more traditional rentals (15 year mortgages) and one STR just last year. Net worth is up seven figures on properties alone and we bring in about $65k a year in cash flow. That cash flow is driving more investments.

Anyway both paths free up money/wealth. But investing tends to lead to compounding. And since my main mortgage is 3.25% never paying it off - I’ll let it run until all 30 years are done. Well we will probably only hit 25 years since I want to sell around 55 and build a custom 1st floor only home.

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