No - I'm not talking about buying up a bunch of mortages or investing in some real-estate get rich quick scheme. I'm not even talking about buying a 2nd house so you can have two mortgages. I'm talking about taking your current home mortgage and throwing money at the principle to help pay it off as soon as possible.
Crazy talk? Seemingly not.
It seems the financial debacles of the last year and a half have led a number of folks to this exact strategy. There's certainly been some action in this space among our family. We aren't alone though, several folks at work have also been "throwing" any extra dollars towards their mortgages as well.
There seem to be several things driving this behavior. 1. Fewer investment options in a world of lower risk tolerance. 2. Adjustable mortgages coming due 3. A broader desire to reduce debt. In the housing boom over the past 10 years many folks didn't seem to view their mortgages as debt but rather their primary investment/retirement vehicle.
Will this behavior continue?
Long term rates are low. The stock market is sick. Banks pay nearly nothing on cd's short or long. It is as good a time as I can remember to pay down a mortgage.
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