Would you pay off a negative interest rate mortgage?

[burritos]

https://www.bbc.com/news/business-54314971

Just a thought experiment. I don't know much about them. They don't exist here in the US. They're thinking about doing it over there across the pond. I know a lot of people are more than happy to be debt free with regards to their home, but at what interest rate would it be worth it to do continue the monthly nut?

[CordMcNally]

Once I refinanced to a 15 year 2.375% loan then that's when I decided that I wouldn't put any extra towards the mortgage.

[VagabondMD]

No, but that is not what they are talking about in the article.

[Marko-ER]

CordMcNally Ha, good one. I also just refinanced to a 2.375%. I am still planning to put in a bit extra the first year that I am NOT itemizing (i.e. 2022, standard deduction only; I itemize every other year), so that I can "flatten" the amortization curve. After that, unless interest rates turn negative like in Europe and Japan (& I have no other choice bond investments), no extra pre-payments.

[burritos]

I just refied to 2.875% but it's a thirty year. Theoretically I'll be 80 when finish paying the mortgage.

[endo4jc]

Once I refinanced to a 15 year 2.375% loan then that's when I decided that I wouldn't put any extra towards the mortgage.

What do you do with the extra money that you are not putting towards principal? Spending it? Investing?

[CordMcNally]

What do you do with the extra money that you are not putting towards principal? Spending it? Investing?

Investing about 90% of it but trying to spend a bit more.

[burritos]

What do you do with the extra money that you are not putting towards principal? Spending it? Investing?

In my household my wife is the primary spender. So she pays the discretionary spending bills(credit card and household bills) with her earnings. I pay mortgage(pita) and invest the rest(or pay down rental mortgages). I don't intend to spend more on my side, so extra cash flow due to refi inherently will be allocated into assets.