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this post was submitted on 11 Feb 2025
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Asklemmy
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Slow your roll buddy. I didn’t say it’s meaningless to everyone, only that it wouldn’t change my life.
To your example, I already own a house but $93k won’t pay off my mortgage, or let me retire early, or cover my kids’ college costs.
Paying that large of a chunk of a mortgage would absolutely reduce your future interest costs though.
...but wouldn't change your life.
That's completely relative. Literally anything will change your life, or nothing, it depends on your perspective.
Saying "it wouldn't change my life" means literally fuck all to the people whose lives it would change.
Like good for you, I guess?
Prepaying a mortgage is almost always a worse investment than anything else because mortgage interest is tax deductible.
Not always, but often, yes. It depends on what your alternative potential uses for the money are.
Not always but often. You could even say almost always. 😉
Isn't mortgage interest deductible only if you itemize your deductions?
Sure, but mortgage interest can easily be enough to make that worth it without any other deductions. With $300K principal and a 5% loan, that’s $15K - about the same as a single taxpayer’s standard deduction and roughly half of a married couple’s standard deduction.