principal paydown question

[Scott W.]

i don't see any chatter on here about the benefits about principal paydown.

if someone's had a house for a while & the principal applied is $300, $400, $500 per month that IS increasing your net worth ASSUMING the values do not continue to fall.

So if one's losing a little a month on the 50% rule, isn't he coming out ahead in the end?

[Rob K.]

I'm pretty sure the 50% rule doesn't involve your payment. It's based on cash.

While most investors try to buy houses for zero down and get 100 year mortgages like they're in Japan, I like to pay everything down. I'm not a fan of debt. While I have debt on some houses, most are paid for. The ones with debt all have low interest rates and I'm on track to have them all paid off when I'm still young enough to enjoy my wealth.

You're right about the net worth part. You are increasing it every month and your goal should be to owe no one. You are coming out ahead at the end.