The New and Improved Bond Mortgage Swoop

Last week, we dreamed up the idea of our mortgage swoop, where we'd pay off our mortgage all at once as soon as our financial independence fund got to $1M plus our mortgage balance. The feedback from readers was a little...mixed. With few in outright support of the swoop, I think the general consensus was that even if the plan isn't optimal by the numbers, it is at least simple, straightforward, and good in the sense that being without a mortgage in early retirement can be a pretty good thing on its own.

Then I tweeted out to Big ERN as well as Joe & OG from Stacking Benjamins, just to get the take from some people who know more about analyzing financial options than I do. Instead of just giving his opinion on the swoop, Big ERN threw out an entirely different idea, too.

Our Mortgage Swoop

Ever since we purchased our first home, Mrs. Done by Forty and I have had no idea what to do with our mortgage. When we first got in to personal finance we were against debt of any sort, so we threw every dime we could at our first mortgage, paying it off in just over three years.

Seeing how we did this from 2010-2013, this plan had opportunity costs that are so large that it hurts my heart to even think about it. Still, it felt good at the time.

After paying off the house and enjoying debt-free bliss for a year, we up and bought a couple adorable rental properties, complete with tiny mortgages.

After a while, we realized that opportunity costs are just as real as any other cost. So we took out another mortgage on our primary residence in 2016, just three years after paying it off. I always wished I'd called in to Dave Ramsey's show to tell him that.

Now, nine years after buying our first home, both of the rentals and our first primary residence are long gone, as are our dreams of lording over a real estate empire. It turns out we hate being landlords.

Do we hate mortgages, too? Let's find out, because we're about to pivot on our mortgage once again.

Who Wants a Fight With No Referee?

Since we need to have a fresh injustice each day, the Trump administration is rolling back protections on the payday loan industry, because of course they are.

I don't know why I am still and continually surprised by this administration, but I am.

Why wouldn't they take a look at a situation that has the low-earning, underbanked on one side, and a well-financed predatory lending industry on the other and decide, "You know what? I think we need to take the kid gloves off these lenders. Let's see what the unfettered free market does when they don't have to consider whether borrowers can actually repay loans at 400% interest. The financial crisis was ages ago, anyway."

The good people at MSNBC have a video that explains the situation in an excellent segment titled "Money, Power, Politics".

For a deeper dive, check out this NYT piece that outlines how the one federal agency tasked with protecting consumers has instead put the interests of payday lenders first.