D's points are as follows:
- It is an issue of personal responsibility. He is able to and wants to do his part in a fair manner
- Our current net worth is being built more from debt repayment vs. actual savings. We need to do more actual savings. Net worth would be the same but we would have more liquidity.
- Our mortgages are 2.10% and 2.25% respectively with a 9 year or so end date. They are at great rates so we can afford to take more of an investing frame of mind and buy low.
- He did a spreed sheet projection showing what the difference would be if we paid off the mortgages in 5 years vs. investing the amounts for 9 years at very safe 3%, 4%, 5% rates of return. We do come out slightly ahead with investing.
- Should either one of us lose our jobs, it would be nice to have more money in the bank.
- Worse case, take the savings out in a few years and pay out the mortgage if for some reason things don't go well.
The project amount of pure savings (0% growth) over 9 years is $292400.
All in all, some convincing arguments, I must admit.
We are going to give savings a go for the rest of year and re-evaluate for 2010. That will give me a chance to see how difficult it may be for me to stare at a slowly declining debt amount. D feels seeing savings grow will offset that.