https://firechecklis...age-or-keep-it/
new blog posting, pay off the mortgage or keep it?
Started by
cycletimer
, Aug 07 2018 05:04 PM
8 replies to this topic
#2
Waver
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Posted 07 August 2018 - 07:34 PM
Ever think of just recasting the loan? Does that work well the ARM?
#3
SemiBizz
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Posted 07 August 2018 - 07:42 PM
Pay it off unless it's an assumable loan, which can be an asset at these rates if they are fixed... something a buyer would find attractive as rates climb.
Otherwise, pay it off...
It's always going to be a liability that you can't get off your mind...
Being debt-free is peace of mind, you just have to decide if it's worth that small tax benefit.
As far as borrowing to the hilt to invest the money elsewhere, that's a recipe for disaster.
Get a new accountant.
Price and Volume Forensics Specialist
Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
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Richard Wyckoff - "Whenever you find hope or fear warping judgment, close out your position"
Volume is the only vote that matters... the ultimate sentiment poll.
http://twitter.com/VolumeDynamics http://parler.com/Volumedynamics
#4
Waver
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Posted 07 August 2018 - 09:41 PM
nevermind my question.
no real reason to recast when you when you have an ARM that low.
#5
dwyer
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Posted 08 August 2018 - 08:13 AM
I could not agree with Semi more - the accountancy "professionals" just cannot get away from that mortgage interest deduction.
Free and clear is mental freedom
#6
Waver
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Posted 08 August 2018 - 08:29 AM
Free and Clear is Mental Freedom 👍
For Sure!
For Sure!
#7
Rogerdodger
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Posted 10 August 2018 - 08:48 AM
I've been mortgage free for years, but considering the property tax, Insurance and utilities, there's no free ride.
And, having a mortgage, you make that monthly payment instead of the huge yearly tax and insurance bill.
On the other hand, "assuming the interest rate is locked in at a low rate" there is a bit of law suit "protection" by not having your home mortgage free.
IRS, lenders etc, don't go after the bank's equity in the event of a financial catastrophe.
Edited by Rogerdodger, 10 August 2018 - 08:53 AM.
"Nature's Failure to Function in a 'Predictable Way'... 500 years ago?"
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#8
qqqqtrdr
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Posted 10 August 2018 - 11:29 AM
Good question.... It all depends.... It is not bad to have a Mortgage... paying monthly payments help your credit worthiness and help you when buy new property... I always say if your interest is more than your principal, at least pay off enough to make sure your principal is more than your interest... The lower the mortgage interest the less need it is to pay it off early or increase monthly payments.
#9
cycletimer
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Posted 10 August 2018 - 04:49 PM
I've been mortgage free for years, but considering the property tax, Insurance and utilities, there's no free ride.
And, having a mortgage, you make that monthly payment instead of the huge yearly tax and insurance bill.
On the other hand, "assuming the interest rate is locked in at a low rate" there is a bit of law suit "protection" by not having your home mortgage free.
IRS, lenders etc, don't go after the bank's equity in the event of a financial catastrophe.
I have a low monthly mortgage payment with no escrow. I pay insurance and taxes separately in one lump sum. Taxes are painful as last year my property tax bill was $10,400. (In TX, property tax rates are as high as giraffe p*ssy!). I never thought of the law suit protection before but you're right.
