We chose Signal Mountain after comparing homes and schools around Chattanooga. A home near public schools we valued looked more practical than paying recurring private-school tuition. In late 2010 we bought a home for approximately $174,900 with FHA financing and a small down payment. My individual Social Security-taxed earnings that year were about $30,600.
Our original mortgage interest rate was 4.5%. The mortgage has been our principal long-term liability; we generally bought cars with cash and did not use credit cards until much later. As of November 2026, the documented mortgage balance was approximately $106,600.
The house also needed work. We spent approximately $8,000 on air conditioning, $13,000 on the septic system, and $10,000 on a roof over the years—sometimes waiting for a tax refund or selling investments to pay for it. Owning a home is not merely a rising Zestimate or declining mortgage balance.
Why I haven't rushed to pay down the mortgage
I have generally chosen not to make accelerated mortgage principal payments. The reason is opportunity cost: I believe preserving and investing capital can offer a better long-term outcome than retiring a 4.5% mortgage early. But that judgment depends on investment returns that aren't guaranteed, taxes, liquidity, risk, and personal peace of mind. Paying down debt earns a known interest saving; market investments may produce more, or less.
A different decision about a vehicle
In 2026 my old V6 Mustang convertible had around 250,000 miles and needed replacing. After the conflict involving Iran, I was concerned about sustained higher gasoline prices and focused on hybrids. I test drove several models and narrowed the choice to the Hyundai Sonata Hybrid.
I initially wanted a certified pre-owned vehicle. Financing the used option appeared likely to cost roughly 7–8% interest, while Hyundai's manufacturer financing on a new vehicle offered a much lower rate, which I remember as around 1.9–2.9%. Those exact loan terms still need checking against my contract.
Using present-value and monthly-payment comparisons, I concluded that a new Sonata could be more manageable from a cash-flow perspective. In May 2026 I put $10,000 down and chose a 72-month loan with payments around $400 per month. It was my first financed car.
The promotional rate doesn't automatically mean the new vehicle will cost less over its full lifetime than every used option. Depreciation, total price, maintenance, insurance, interest, and fuel all matter. My particular decision was that the available combination of financing, reliability, and monthly payment worked better for us.
As with the mortgage, I don't intend to accelerate a low-interest vehicle loan merely because I have enough investments to pay it off. I value available capital, while recognizing that investing instead of paying down debt exposes me to market risk.