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re: Soliciting Free Advice: Opportunity to Buy - Pay Cash or Mortgage?
Posted on 4/8/21 at 7:12 pm to UncleLester
Posted on 4/8/21 at 7:12 pm to UncleLester
Seems prudent.
Nothing stops you from paying cash to pay it off later if you change your mind.
Nothing stops you from paying cash to pay it off later if you change your mind.
0
Posted on 4/8/21 at 9:55 pm to UncleLester
Do what you believe will make sense to you financially. I paid off my house last year. It is the best decision that I ever made.
Posted on 4/9/21 at 6:06 am to lil 7thward
quote:
Do what you believe will make sense to you financially.
To be fair, in this case there is one pretty obvious decision that is best for someone financially and other decisions that may be best for someone emotionally. Therein lies the difficulty.
Posted on 4/9/21 at 6:45 am to lil 7thward
Paid off first house early ~10 years ago. Looking back that wasn't the best financial move even at 5.5% APR we could have made more in index funds.
I wouldn't do it again especially with low interest rates and potential inflation. Use the mortgage as an inflation hedge.
I wouldn't do it again especially with low interest rates and potential inflation. Use the mortgage as an inflation hedge.
Posted on 4/9/21 at 7:01 am to UncleLester
Look at the cost of a 30 year vs a 15 year mortgage. Get the cheapest...pay the 30 off early to reap savings, if you choose it.
Definitely use interest rates to your advantage at this crazy time.
Definitely use interest rates to your advantage at this crazy time.
Posted on 4/9/21 at 7:13 am to Chucktown_Badger
quote:
Disagree. If you buy outright that cash is all gone now. If you carry a mortgage you'll still spend that much, you just don't lose it all now, and have the opportunity to be better off in the end by making more interest than you're paying.
With autopay, you don't even realize you're paying it each month.
I understand what you're saying and don't fundamentally disagree, but I reiterate the point that outright ownership is a safety net that allows the ultimate peace of mind. I'm fine with it being a personal preference, but for me to say my home is MINE is important to me and may be to others.
Posted on 4/9/21 at 8:05 am to itsbigmikey
quote:how much stress do you really have thinking about your mortgage payment every month? Is it that much to sacrifice that much money? How about the peace of mind of being able to sustain oneself for a while knowing you have all that cash readily available of shite were to hit the fan and your family situation changed? Does that not count?
but I reiterate the point that outright ownership is a safety net that allows the ultimate peace of mind.
Posted on 4/9/21 at 8:46 am to itsbigmikey
quote:
but I reiterate the point that outright ownership is a safety net that allows the ultimate peace of mind.
How? I get the emotional side of it, but how does outright ownership provide a financial safety net?
I’d rather lose my job with $250k in the bank and a $250k mortgage than to lose my job with no money and no mortgage.
Posted on 4/9/21 at 8:48 am to UncleLester
you'd be crazy not to do a 15 year mortgage and keep your other money working doing something else. if you need peace of mind, put your mortgage payments aside in another account and just let it eat, i do that all the time.
Posted on 4/9/21 at 8:58 am to castorinho
In our current situation, a SHTF moment would be hyperinflation in which a boatload of cash isn't ideal. Fair enough though, we really can go back and forth all day but everyone's goals are different. I want to actually own what's mine and it's as simple as that. Not denigrating anyone who wants to play the game, just a personal preference.
Posted on 4/9/21 at 12:09 pm to itsbigmikey
quote:
In our current situation, a SHTF moment would be hyperinflation in which a boatload of cash isn't ideal.
Wouldn’t it be even better if you owed someone a fixed rate on that worthless money and had invested the cash too? Then you’d have the house and the other asset(s) appreciating.
Like I said earlier, I appreciate the he emotional argument of it, but the financial logic is usually flawed.
This post was edited on 4/9/21 at 12:10 pm
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