To pay off the house or not pay off the house, that is the question.

I am in a very fortunate situation of having enough cash reserves to pay off the house this instant. Of course, if I were to do that, I will have very little cash on hand. I will still not be penniless, because I still have my very modest retirement fund, but that’s not something I can rely on for my immediate needs.

I currently owe $132,504.02 on the house to Wells Fargo, at the rate of 3% for a 15 year term. All things considered, I got an extremely good deal. It would have been better had I purchased a house in the middle of 2015, when the interest rates were as low as 2.875% for a 15 year term, but the house I ended up purchasing wasn’t on the market at the time. I have absolutely no regrets about waiting, because I found the perfect house.

I have been anti-debt for a very long time. I never believed that debt is the way to succeed in life. I still don’t.

When I started researching online about paying off the mortgage, and becoming debt free, I realized that not a whole lot of people see things the same way. I encountered a lot of pro debt arguments. The arguments typically advocate leveraging this debt by investing all the extra money in the stock market, and only making the minimum monthly payments on the mortgage.

This will only make sense mathematically, provided that the stock market achieves over 3% rate of return over a 15 year period, something that is definitely not guaranteed.

The idea of having a mortgage so that I can use the interest payment as a tax deduction did not make much sense to me. I don’t know how this can be more beneficial than not have a mortgage payment at all. I need to do some more research on this, and see how this applies to my situation.

Given all the information I consumed on this subject, I decided to hold off on paying off the mortgage at the moment. I am still not fully convinced that having debt is a good thing, but I am willing to explore it a little bit more. If I am not convinced, I can always pay off the house.

I intend to come up with a detailed plan on how to tackle this debt. That plan may very well involve paying off the mortgage in one go.

Of course, each day that I carry the mortgage, I am making a net payment of around $3.48 to the bank…something to think about for sure.

My view on debt.

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