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|Subject: Re: Would you pay off Home loans at 4.75%??||Date: 8/6/2013 11:36 AM|
|Author: JLC||Number: 72732 of 78024|
Unless the entire mortgage is paid off...
This person could do what I (and I'm sure many others) did, save until you have the lump sum to pay off the mortgage.
As far as the rest of your comments about liquidity. Imagine a couple worse case scenarios.
First, your job packs up and moves across the country. If you have your house paid off, you can more easily buy/rent in your new place if you don't also have to pay a mortgage in your old place. And you would also have time to wait for an offer you'd take instead of settling for less just to get out from under the mortgage.
Second, note I said have an emergency fund. Putting money in equities and gettin it out fast if you need it doesn't work. When are you most likely to need money fast? When the sh*t hits the fan. How bad would it suck to need money fast, right when the market crashed in '09 (or pick any other major downturn) and you see your Vanguard 500 has lost 25-50% of its value and you have to sell at the worst possible time.
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