I knew with this bull Market that started in 2009 that there would be a time I would consider paying down my mortgage faster. I have decided that at this point in 2017, it became a good option.
Now let’s be clear, it doesn’t mean I am not going to buy any stocks going forward, it just means the percentage of my investment allocation is not going to be the same. Yes my current mortgage rate is only 2.7% for the next 5 years. And there is a good chance I could get a better total return in the long run with my cash.
However there is a bigger motivation for me and that is the flexibility of my daily cash flow. If you ask anyone if they would like to have a debt load diminished by 30% (or more depending of how much your mortgages payments take of your home pay of there monthly expenses): the answer will be a yes sir!!!!
Being mortgage free allows you to take off financial stress. It allows you to take unpaid holidays, work part time…. you name it. It’s a tool to add flexibility to your life. My current portfolio will grow over time anyways. Valuations have become high enough for me to acknowledge and practice the quote of the day.