Investing to Pay Off Mortgage - thoughts?

steampowered

Over a 7-10 year time period, I personally would do all investments and stop overpaying.

Over 7-10 years, it is extremely likely (though not 100% certain) that you'll get a higher investment return than the interest you pay on the mortgage.

When you are looking to move into a bigger property, you can simply sell your investments and put it towards the new house instead.

Thrugelmir

tcallaghan93 said:

Thrugelmir said:

ian1246 said:

I'm just conscious of the Covid19 situation in the USA & the upcoming US Election and its possible impact on US Economic performance. 

A Biden win would certainly herald a totally different regime in many ways. 

/
People said the same things about Reagan and Bush as they say about Trump.

If the Democrats control both houses. Then expect the climate to be let's say less business friendly. 

coyrls

DiggerUK said:

coyrls said:

DiggerUK said:

usually, but not exclusively, associated with interest free mortgages.

I would have liked one of them!

You would have liked an interest free mortgage??? 

I don't know if I should put you in the group known as "stoopid is as stoopid duz" or the group not capable of learning the lessons from history..._

I suspect you meant interest only mortgages, I can't see anybody turning down an interest free mortgage.

Thrugelmir

kinger101 said:

DiggerUK said:

ian1246, I'm  definitely a "get real and clear the mortgage first" poster. But as the man said, 'stoopid is as stoopid duz'. Harsh, I know.
But as the woman  said, "those who don't learn from history are doomed to repeat it"

I am of course referring to the mis selling of endowment policies. The mis selling came about primarily because they were sold making out they would eventually provide the funds to clear the mortgage, usually, but not exclusively, associated with interest free mortgages.

They failed to deliver in  the tens of thousands. You're about to run the risk of making nearly the same mistake, with no chance of compensation. Just pay the damned mortgage..._ 

OP is going into this knowing that on average returns will be better than mortgage interest, 

Hence the eternal caveat of "past performance" etc etc. Watching the markets no one would know there's been a global pandemic the past few months. Corporate profitability generally is going to take a significant hit. 

DiggerUK

Interest free mortgages......Doh, aka "stoopid is as stoopid posts..._

coyrls

DiggerUK said:

Interest free mortgages......Doh, aka "stoopid is as stoopid posts..._

Welcome to the group.

phillw

Thrugelmir said:
If the Democrats control both houses. Then expect the climate to be let's say less business friendly. 

Donald Trump is over friendly in many ways.

bowlhead99

phillw saidDonald Trump is over friendly in many ways.

Certainly toward his daughter, but I expect she got used to the attention that comes with being an attractive female within short range of a lecherous millionaire.

bd10

Having fixed 5 years below 2% is a great place to be in. I did the same earlier in the year for two reason: inflation at the moment is ultra low but covid is an extraordinary situation, but this is likely to change judging from inflation expectation. This does not factor in a chaotic January should there be not be a deal on the table. For specifically I locked in for 5 years, not to guarantee myself a cheap rate (rates won't go anywhere for the foreseeable future anyway) but to avoid any marked-to-market, or having ro realise any loss in equity should residential property prices take a big hit on the back of a no-deal. Just assuming worst case.

Personally, I am not overpaying my mortgage as I am getting investment returns well in excess of 2% nominal. The peace of mind I secured myself with a 5 year tenor, the worst both in terms of covid and brexit should be (hopefully) over.

Thrugelmir

bd10 said:

Personally, I am not overpaying my mortgage as I am getting investment returns well in excess of 2% nominal. 

On paper perhaps. When will you bank them?