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Old 12-08-2010, 12:32 PM   #21
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Any other thoughts/feedback would be appreciated.

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Golfnut
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Old 12-11-2010, 08:45 AM   #22
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I don't understand the fascination some people have for paying off the mortgage. Especially since your income has been severely hit.

Running out of liquidity is a nasty thing to have happen to you. And that's just what can happen to people who pay off their mortgage with a big chunk of their cash. OTOH, a 77K balance is pretty small--but I still wouldn't pay it off.

FWIW, I've been retired for 4 years, and just closed on a 4% 30 year refi. My wife let it slip to our neighbors (also retired, but they paid off their house) that we'd just refi'ed and what our payment was. She gasped when she heard our payment amount. But the loan is at 4%, and we have a "preferred & dividend stock" portfolio that earns about 7% and the total portfolio value is about 30% less than the mortgage balance. So we're making net 3% overall and the (lumpy) dividend payout is just a tad smaller than the mortgage payment.
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Old 12-12-2010, 10:40 AM   #23
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Originally Posted by rayvt View Post
I don't understand the fascination some people have for paying off the mortgage. Especially since your income has been severely hit.

Running out of liquidity is a nasty thing to have happen to you. And that's just what can happen to people who pay off their mortgage with a big chunk of their cash. OTOH, a 77K balance is pretty small--but I still wouldn't pay it off.

FWIW, I've been retired for 4 years, and just closed on a 4% 30 year refi. My wife let it slip to our neighbors (also retired, but they paid off their house) that we'd just refi'ed and what our payment was. She gasped when she heard our payment amount. But the loan is at 4%, and we have a "preferred & dividend stock" portfolio that earns about 7% and the total portfolio value is about 30% less than the mortgage balance. So we're making net 3% overall and the (lumpy) dividend payout is just a tad smaller than the mortgage payment.
You hit the nail on the head. We are struggling with this decision. On one hand, it would be great to do away with the monthly obligation of paying off the debt but on the other hand, we do plan on selling and downsizing in apprx. 2 years and having this cash in the bank is somewhat comforting. We are also thinking of paying off the debt in large chunks over the next 12 months.

Decisions! Decisions!
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Old 12-12-2010, 12:25 PM   #24
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Decisions! Decisions!
Avoid paralysis by anlysis. In your situation, none of it is likely to be determinative of anything important.

Ha
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