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Originally Posted by TiltonBB

I look at debt differently than many people. If you have a 3% mortgage and money in a mutual fund that has averaged 20% over the last 20 years why pay off the mortgage?

If you own a home worth $500,000 and owe $250,000 on it and the value appreciates 10%, your equity appreciated 20%. You are making money on the banks money. Property appreciation is your friend.

I started buying two family income properties in 1978. I never cared how much I owed on them as long as, after the down payment the rents would make the payments, with a little extra for vacancies and maintenance. As the rents and my savings, allowed I kept buying two families.

I wasn't the guy that wanted Friday's off from my regular job, most weeks I worked between 58 and 60 hours there and did any necessary property maintenance on the weekends. I'm nobody special, growing up my family had just enough to get by. I knew having a goal would pay off some day and I would be comfortable.

When I was 19, 20, 21 years old I was in awe of the waterfront homes on the lake. I had an 18 foot 1969 Searay that I trailered to the lake. All day long out on the boat I would see people who had "made it" I knew I had to figure out a way to get into a waterfront home.

Anyone could do it, you just have to be willing to work hard, set your goals, and try to make good decisions. Debt doesn't scare me a bit.

Having followed a similar path, I agree up to a point. There's a difference in having a mortgage on an investment/income producing asset, and borrowing money for a depreciating asset or something that has no value at all after the vacation is over. Too much debt on the wrong assets was the problem in 2008.