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Fifth, paying down 8% interest is guaranteed 8%. 100% sure.


This is the only portion of your post I have an issue with, and that is because it presumes your investment in the house itself remains stable and does not falter over time. As this happens to also be your basic premise of caution in stock investments (no guaranteed growth), I see a pretty wide crack developing in the foundation of your argument.

Naturally, the reverse is also true: if the value of your home goes up over time, you'll have made money on that investment as well. However, the equity you earn is not dependant on the money you owe, and therefor you'd still reap this gain even with minimal payments over an extended mortgage.

I say all this in defense of putting your money into the stock market rather than your home, but to be completely honest I fall on the otherside of the argument. While this may not be entirely rational (I'm convinced it's more financially sound to let the mortgage linger) I feel the satisfaction and basic freedom that comes with being mortgage-free is a lot more difficult to measure, and is certainly more important to me and my family. Not having to pay the bank every month is something you can count on, regardless of market highs and lows.

Cheers,
- Unwise

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