I have been using MMA for a little more than 6 months. The program itself helps you stay focused by using a visual. I actually look forward to getting my mortgage statement to compare it to MMA and I also look forward to the promts that guide me to pay extra to my mortgage. Plus, the agent who signed us up has been wonderful in answering all of my questions since we began.
I’ve heard people say that your house is a risky investment. What about fire, flood, etc.? Isn’t that why we have insurance? And what if I cash-out refi and my house burns down? Won’t I still have the same problem only that I owe more to the bank? I’ve also heard that market fluctuations also make paying it off risky. But if you refi and pull cash out and the market takes a downward turn, isn’t that risky also? I understand opportunity cost and I agree that certain people can invest properly and come out ahead. However, our investments are not currently giving us an 8% return. I am disciplined in a sense that I do not overspend and I do contribute to some accounts, but I’m not disciplined to distribute every penny to an investment, and I don’t want to pay someone else to do it for me.
With all of that being said, I also don’t understand why someone who has the knowledge and discipline to invest properly wouldn’t be better off utilizing both tools. Why couldn’t you cash-out refi, invest your cash as stated above, utilize MMA to pay your house down faster, then cash-out refi again (sooner) and have more to invest all the while cancelling interest? I admit that my knowledge of investing is limited so I’m asking these questions for knowledge, not to be derogatory.