Ask Terry Questions Pay down 3% mortgage?

Pay down 3% mortgage?

By Terry Savage on October 09, 2023 | Housing / Real Estate

We have a 30 year fixed mortgage of $270,000 @3.125%. We have only been in our home 2 years after living in our previous home 41+ years. Is it a good idea to pay 2 half mortgage payments a month rather than 1 whole payment?

Terry Says

Taht depends on whether you have other savings for retirement, and whether you are already retired now. A 3% mortgage is a “gift” to yourself!
The really good idea is to NOT owe ANY other debt at higher rates — such as credit card debt, or auto loans. And to keep some cash liquid for emergencies. It could earn 5.5% now with safety.
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