an annuity sales website estimated id get a lifetime annuity of 1550 a mo if i gave them 370k.

paying the mortgage id be saving 2100 a month p and i for 25 years remaining on loan plus 370k in equity TODAY. almost like getting a better annuity FREE.

seems like a Way better deal than the annuity. 25 years is likely close to a lifetime annuity for me.

or maybe its more like a,25 year bond. thats currently at 2.8 perc. less than 2 perc after taxes. the mortgage payoff is at least double that….

Maybe im overthinking this, but…where am I going astray in my calculations…

If I didn’t have a mortgage, I’d be up about 2,100 a month from p&I I did not pay.

That’s about $25,000 a year I’d have extra in the bank every year.

In order to get $25,000 in the bank ordinarily, I’d have to earn $45,000 (minus taxes, would leave me with 25k)

$45000 a year from 370,000 is about a 12 percent pretax return. There’s no way in hell any investment is going to spin off a guaranteed 12 percent pretax a year.

I’m not sure how I got to 12% froma 3.375% mortgage…I suppose I’m partially just getting my principal returned. But I do get the equity in the home.

Argh. Not sure….

Am I double counting or miscounting here? Have I simply gone mad???!!@@@

i think my heart really wants to pay it off, but my mind is looking for justification that this is a smart and not overly conservative financial move.

the reality is if i dont move fast my wife will probably spend 75k renovating the kitchen…