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Personal Investments • Is paying off a 2.99% mortgage always a bad idea?

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OP,

Round up numbers to make it simple.

A) 1.4 million 80/20 with 300K mortgage, annual expense 80K with 10K of PI mortgage payment.

In the coming recession, stock market drops 50% and both unemployed.

1.4 millions loses 40% becomes 840K. With 80K of annual expense, you can lasts 10.5 years.

B) 1.1 million 80/20 without 300K mortgage, annual expense 70K

In the coming recession, stock market drops 50% and both unemployed.

1.1 millions loses 40% becomes 660K. With 70K of annual expense, you can lasts 9.4 years.

C) 1.4 million 70/30 with 300K mortgage, annual expense 80K with 10K of PI mortgage payment.

In the coming recession, stock market drops 50% and both unemployed.

1.4 millions loses 35% becomes 910K. With 80K of annual expense, you can lasts 11.3 years.

(B) is not safer than (A).

KlangFool

Statistics: Posted by KlangFool — Sat Jan 27, 2024 9:15 am — Replies 49 — Views 1652



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