No. of Recommendations: 1
* An owned home is peace of mind, but an illiquid asset
Keep in mind that you own the home whether or not you have a mortgage.

* Foreclosure is a risk, not meaningful if you have cash on hand to cover your mortgage payoff
The primary--and probably the only--risk in having a mortgage is cash flow to make the monthly payment each and every month.


There is a great quote which was originally on the topic of investment strategies, but which is also applicable to the home mortgage topic.
"Long-term investment returns typically emerge as the delayed payment for adhering to a sound discipline even when it is uncomfortable to do so. Short-term investment returns are often easier to find, but they tend to be advances on a loan that will eventually be repaid with interest." -- John Hussman
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