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Should people pay off a mortgage ASAP when fixed rates mortgages equal the average annual stock market returns since it's a guaranteed rate of return?
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Depending on the source, I've seen people report the average stock market return is 7-10%. Current 30-year fixed mortgage rates are around that range. Suppose that, hypothetically, they're the same at X%.

Would it be the more financially advantageous move to pay off the mortgage as aggressively as possible since it's a guaranteed X% rate of return on every extra dollar you put towards the principal, or what are other major considerations to take into account that make it not so straightforward?

Thanks in advance.

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A man I respect and who is financially well off told me years ago that a rich man owns his house, car, etc

He said a poor man always owes someone.

I paid off my first home in 7 years. I felt the most financially secure in those days even though I made less money.

Now I have a house loan. Even though it's 2.875% loan, i still pay extra every month.

There is of course so many variables in life.

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1 year ago