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View Poll Results: Where do you stand with respect to net worth and mortgage payments?
Milliionaire making mortgage payments 106 25.98%
Non-millionaire making mortgage payments 96 23.53%
Non-millionaire with paid off home 43 10.54%
Milliionaire with paid off home 146 35.78%
Renter, live with parents, or other housing arrangements 17 4.17%
Voters: 408. You may not vote on this poll

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Old 01-11-2008, 05:16 AM   #81
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I built my house in 1995, used previous home equity and borrowed 115k and made regular payments and additional principal payments until i paid it off in 2000. Then saved everything and bought condo in 2002 in cash.
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Old 01-11-2008, 06:25 AM   #82
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I paid off my mortgage long before becoming a millionaire. It was my only loan and I didn't like debts.
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Old 01-11-2008, 09:15 AM   #83
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Home mortgage: purpose = acquire nice place to live. Paid it off in 18 months. NW neutral. Increased quality of life.

Rental property mortgage: purpose = leveraged investment. Just acquired one. Positive cash flow, NW up $100K.
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Returns vs psychology
Old 05-09-2008, 09:53 AM   #84
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Returns vs psychology

The math all says to keep the mortgage. Your returns have historically been higher than the rates we pay for our mortgages.

Paying off your mortgage has psychological benefits though. I felt much more comfortable retiring early after I paid it off. Funny, I'm taking better care of the house now and picked up some extra insurance to protect it properly.
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Old 05-09-2008, 10:15 AM   #85
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No mortgage, no worry, retired.
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Old 05-09-2008, 12:34 PM   #86
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My NW is 2.3mm. 0.1mm mortgage remaining at 4.875 15yr fixed.

I have always paid extra against principle but have stopped and rationalized that I could earn more in CD's. So I locked in 100k in 6% 10yr CD in IRA account. However, my portfolio consists of 0.3mm more in fixed income / cash yielding much less than 4.875%.

So begun to think that on the margin, it would make economic sense to reduce the cash portion and retire the mortgage debt. The other arguement would be to reallocate the cash portion to equity (long term equity returns should be above 4.875 albeit at a higher risk profile)

Thoughts?
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Old 05-09-2008, 05:06 PM   #87
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The math all says to keep the mortgage.
My math doesnt say that at all. Perhaps you might learn a few different ways to look at things by reading the mortgage payoff FAQ's.

My math does wonder why someone registers as a new user and then starts resurrecting 6 month to 4 year old threads on mortgage payoffs.
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Old 05-09-2008, 05:26 PM   #88
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Jose, perhaps?
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Old 05-09-2008, 05:29 PM   #89
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Jose, perhaps?
Cuervo?
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Old 05-09-2008, 06:21 PM   #90
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Can you see....
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in Canada....
Old 05-15-2008, 01:15 PM   #91
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in Canada....

in Canada the math is way different. No ability to deduct any mortgage interest. Pay it off, get nest egg, retire early and live off the government . Hense the obsene taxes do not hurt anymore. Its true!
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Old 05-17-2008, 06:09 PM   #92
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in Canada the math is way different. No ability to deduct any mortgage interest.
......unless it's an investment property.

The inability to deduct mortgage interest on one's principal residence probably has been a moderating influence on Canadians' use of home equity as a line of credit.

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Hense the obsene taxes do not hurt anymore..
Luckily the taxes have been getting a little less obscene lately.
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Old 05-17-2008, 06:49 PM   #93
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I paid off my mortgage and my home equity line of credit. My math is simple:

Financial Freedom means Investment Income exceeds Living Expenses by a Margin of Safety.

Debt payments increase living expenses. By paying off the mortgage and HELOC loan, I needed less investment income to achieve financial freedom.

While it's true that one can do an arbitrage play (i.e., invest money at a 12% return while paying mortgage interest at a 6% rate), the downside to being leveraged is when Mr. Market becomes depressed. Debt payments continue regardless of what Mr. Market does. Less debt means more room to maneuver when times become tough.
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Old 05-17-2008, 09:31 PM   #94
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Ding a ding dingly ding!!!
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