What to do about mortgage early payoff?

[ShreddedWheat]

Economy/Stock market seems to be doing well but most of us know it is false reality. Not to get into long discussion. If you feared that the dollar will fall and lose value and got money from inheritance would you pay off your house if you could? I'm thinking if house is paid off then no problem. If left with lump sum money and dollar crashes and purchasing power is cr*p then I'm screwed getting pennies to the dollar on new currency if shtf!

Suggestions?

 

[NetWareHead]

Rule of thumb is that a windfall like an inheritance should be used to make a new investment. But if you are in bad financial shape, pay off your largest debts.

 

[Miramonti]

You're over thinking it because if you're trying to predict the market or the dollar, as well as implications of those predictions if correct, you're probably going to be wrong. Workout what you want in terms of cash on hand and a diversified investment portfolio, and make a decision like it's just another day.

 

[sunzt]

Well if shtf and the dollar collapses your payments will stay the same if you have a fixed mortgage. Also if you pay off your loan then you have a lot of equity in your house, which begs the question how much would your house be worth if shtf and dollar collapses? Probably not much.

In both cases, it doesn't make sense to pay off the loan.

If you're really concerned about such scenario you should stock up on gold, guns, and food. At least with those things you can barter; not as well with a house.

 

[blinblue]

One way to look at it that might be helpful. If you had a paid for house, would you go get a mortgage to have a lump sum to do something with?
For me the answer is no, I wouldn't do that. So my plan is to pay off my house quickly because the peace of mind is worth it to me. Of course that is something you need to decide for yourself. But it is often helpful to look at situations like that and ask the question in reverse.