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re: The reoccuring question.. should I pay off my mortgage?
Posted on 9/18/12 at 8:28 am to AngryBeavers
Posted on 9/18/12 at 8:28 am to AngryBeavers
quote:
Yes, never a bad decision to pay off your home. Yeah .4% doesn't seem like much but you'll have peace mind right?
This seems like terrible advice
Things like "peace of mind" don't trump actual math
1
Posted on 9/18/12 at 11:07 am to Brian Wilson
quote:
I would much rather have a paid off mortgage than a fat stack of cash.
OK.
Having your house note paid creates a sense of security for you.
I enjoy having the security of the cash in hand while living in the house I have mortgaged.
quote:
Pay off the home and then build the stash back up, all while not having a mortgage payment. You'd be surprised at how fast you can save/invest when you don't have monthly payments. I've done exactly that and the feeling of completely owning my home is one that cannot be replaced.
OK.
Again, it is your need of a secure feeling that strengthens you, and that is OK.
I prefer to keep a note on my real estate purchases while saving and investing. Opportunity cost calculations indicate that my decision is always in my best monetary interests. I maintain a low mortgage payment that frees up all that would be paid toward the mortgage payment, to go into savings, while maintaining a semblence of tax-deduction on interest paid.
Posted on 9/18/12 at 1:39 pm to LSUStjames
Pay it off. Best decision I ever made. Saved 1,000s. Money in the bank is worthless.
Posted on 9/18/12 at 1:55 pm to BestBanker
quote:
I maintain a low mortgage payment that frees up all that would be paid toward the mortgage payment, to go into savings, while maintaining a semblence of tax-deduction on interest paid.
Sorry dude, maintaining a mortgage just for the tax deduction is pointless. You can put that money elsewhere and earn more in interest than you are going to save on taxes.
Posted on 9/18/12 at 1:58 pm to Brian Wilson
Forget it, Donny, you're out of your element.
Posted on 9/18/12 at 1:59 pm to Brian Wilson
quote:
Brian Wilson
He's your buddy isn't he?
Posted on 9/18/12 at 2:08 pm to LSUAfro
Who is this? He looks like a ra-tard.
Posted on 9/18/12 at 2:20 pm to Brian Wilson
(no message)
This post was edited on 1/27/14 at 10:06 am
Posted on 9/18/12 at 2:35 pm to Brian Wilson
quote:
Sorry dude, maintaining a mortgage just for the tax deduction is pointless.
did you read all of my reply to you or did you just pick this one thing to drone on, bruh?
Posted on 9/19/12 at 5:34 am to BestBanker
much of this discussion is based on a normal economy.
After November we will have a clearer look at financial decision making
After November we will have a clearer look at financial decision making
Posted on 9/19/12 at 7:31 am to 756
quote:
much of this discussion is based on a normal economy
I don't have enough time to waste on this one, so I
to your insight.
Posted on 9/19/12 at 8:10 am to foshizzle
quote:
Finally, I just don't get the whole "peace of mind" thing.
and yet plenty do.....especially those who have struggled most of their life with a house note during bad times,other debts/situations, etc.
it all depends on his situation of which he has not given us the details of. You want that note during a job loss? Family debt crisis? UI runs out? Who knows what can happen? Emergency fund run out on other debts? Foreclosure?
Bottom line is if he paid off the house and had next to nothing left(Huge mistake) then yes most would prefer to milk that cheap rate and invest that money instead. Now if he has as much in the bank along with that money he inherited and he plans to stay there awhile pay it off...unless he would save that inherited money for his emergency mortage note and invest it in a high dividend yield fund in the meantime. I prefer no bills (if at all possible) as i have had enough notes over my lifetime. But that is just me.
This post was edited on 9/20/12 at 2:14 pm
Posted on 9/19/12 at 8:11 am to 756
quote:
much of this discussion is based on a normal economy.
yup. easier said than done. I have been through tons of hard times.as have others here. always be prepared for the worst.
This post was edited on 9/19/12 at 8:17 am
Posted on 9/19/12 at 8:13 am to LSUStjames
quote:
I recently came into a good bit of change. Enough to pay off all debt, etc..
This tells me nothing. Bottom line how much will it cost to pay your house off?
IF you pay it off how much money do you have left total? that you have in investments, savings? etc?
Posted on 9/19/12 at 9:15 am to Brian Wilson
Easy decision, pay it off.
Posted on 9/19/12 at 11:38 am to RandySavage
As everyone said the specific details of the situation make a difference, but as for rules of thumb, I'm starting to think that paying off the mortgage makes better sense. On paper many folks can beat the interest rates, but I think most don't because they don't put forth the proper time/effort. If you have better investment vehicles or are willing to put the time in great, but for most people who don't do that, I think paying off the mortgage faster, is a better bet.
Posted on 9/19/12 at 12:18 pm to slacker00
quote:
You want that note during a job loss?
He can always pay the note and taxes with this chunk of cash during a job loss or crises. On the other hand if he pays off the mortgage and then has a crises he cant even pay the taxes, electric bill, etc...
Posted on 9/19/12 at 12:31 pm to jmtigers
quote:
He can always pay the note and taxes with this chunk of cash during a job loss or crises. On the other hand if he pays off the mortgage and then has a crises he cant even pay the taxes, electric bill, etc...
BINGO!!!!!!
Posted on 9/19/12 at 12:41 pm to TheHiddenFlask
I think alot depends on what your income potential is.
if you make 35k a year id say you better hang on to a big portion of the money.
if you make 150k a year id say pay the house off.
if you make 35k a year id say you better hang on to a big portion of the money.
if you make 150k a year id say pay the house off.
Posted on 9/19/12 at 2:01 pm to jmtigers
quote:
He can always pay the note and taxes with this chunk of cash during a job loss or crises. On the other hand if he pays off the mortgage and then has a crises he cant even pay the taxes, electric bill, etc...
which is why i stated....................
quote:
Bottom line is if he paid off the house and had next to nothing left(Huge mistake) then yes most would prefer to milk that cheap rate and invest that money instead. Now if he has as much in the bank along with that money he inherited and he plans to stay there awhile pay it off...unless he would save that inherited money for his emergency mortage note and invest it in a high dividend yield fund in the meantime. I prefer no bills (if at all possible) as i have had enough notes over my lifetime. But that is just me.
then i asked him....................
quote:
Bottom line how much will it cost to pay your house off? IF you pay it off how much money do you have left total? that you have in investments, savings? etc?
hell, the guy may have a ton in the bank and still want to hold the new money also and milk that rate. fine, it is up to him as i stated beforehand. different circumstances for different people.
This post was edited on 9/20/12 at 2:15 pm
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