question regarding home payoff vs savings

[dixiegrrrrl]

1. I am actually in the same situation you are.

So have been giving this a lot of thought.

The "experts" say that paying off a...let's say 4%...interest rate loan is equal to "making" 4% on money you have after you pay off the loan.

But...."experts" also say that paying off long term loans in times of inflation
( which we have, even tho the government does not count food or energy in the figures that make up inflation)
anyhow, paying off long term debt with less valuable dollars is a good thing
while buying things with less value dollars ( paying higher prices) is a bad thing.

Plus, if you recently re-fied, then your new loan starts the interest rate portion of payments all over again, so most of your money goes to interest each month
AND
the extra money you add to the payment.......did your new loan papers specify "No pre-payment penalty"?

One last thing..
Is your home going to be worth a reverse mortgage at some point down the road?
THAT's an option to consider if, like me, your loan term is longer than your expected lifespan.
(caveat: gotta be real careful about reverse mortgages, lots of pitfalls to avoid)


Back in 2005, our plan was to buy this house, then sell it in 20 years or so, as we got much older.
dunno if that is a feasible plan anymore, given the changed economy.