|
View Poll Results: Where do you stand with respect to net worth and mortgage payments?
|
|
Milliionaire making mortgage payments
|
   
|
106 |
25.85% |
|
Non-millionaire making mortgage payments
|
  
|
96 |
23.41% |
|
Non-millionaire with paid off home
|
  
|
43 |
10.49% |
|
Milliionaire with paid off home
|
  
|
148 |
36.10% |
|
Renter, live with parents, or other housing arrangements
|
  
|
17 |
4.15% |
 |
|
01-11-2008, 04:16 AM
|
#81
|
|
Moderator Emeritus
Join Date: Aug 2007
Location: Northern Illinois
Posts: 16,600
|
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.
|
|
|
 |
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!
Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!
You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!
|
|
01-11-2008, 05:25 AM
|
#82
|
|
Recycles dryer sheets
Join Date: Aug 2005
Posts: 193
|
I paid off my mortgage long before becoming a millionaire. It was my only loan and I didn't like debts.
__________________
Retired in 2001 at age 49.
|
|
|
|
|
01-11-2008, 08:15 AM
|
#83
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
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.
|
|
|
|
|
05-09-2008, 08:53 AM
|
#84
|
|
Recycles dryer sheets
Join Date: May 2008
Posts: 350
|
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.
|
|
|
|
|
05-09-2008, 09:15 AM
|
#85
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2008
Posts: 6,506
|
No mortgage, no worry, retired.
__________________
There must be moderation in everything, including moderation.
|
|
|
|
|
05-09-2008, 11:34 AM
|
#86
|
|
Dryer sheet wannabe
Join Date: May 2008
Location: Illinois
Posts: 22
|
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?
|
|
|
|
|
05-09-2008, 04:06 PM
|
#87
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
|
 Quote:
Originally Posted by Pete
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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
|
|
05-09-2008, 04:26 PM
|
#88
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2006
Location: Collin County, TX
Posts: 9,296
|
Jose, perhaps?
__________________
There's no need to complicate, our time is short..
|
|
|
|
|
05-09-2008, 04:29 PM
|
#89
|
|
Thinks s/he gets paid by the post
Join Date: Dec 2007
Posts: 4,764
|
Quote:
Originally Posted by bbbamI
Jose, perhaps?
|
Cuervo?
|
|
|
|
|
05-09-2008, 05:21 PM
|
#90
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
|
Can you see....
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
|
|
05-15-2008, 12:15 PM
|
#91
|
|
Recycles dryer sheets
Join Date: Jun 2004
Location: Bedford, NS
Posts: 155
|
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!
|
|
|
|
|
05-17-2008, 05:09 PM
|
#92
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
|
Quote:
Originally Posted by superdave
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.
Quote:
Originally Posted by superdave
Hense the obsene taxes do not hurt anymore..
|
Luckily the taxes have been getting a little less obscene lately.
|
|
|
|
|
05-17-2008, 05:49 PM
|
#93
|
|
Recycles dryer sheets
Join Date: Apr 2006
Posts: 143
|
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.
|
|
|
|
|
05-17-2008, 08:31 PM
|
#94
|
|
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
|
Ding a ding dingly ding!!!
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
|
|
|
|
|
|
|
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
|
|
|
Posting Rules
|
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
HTML code is Off
|
|
|
|
» Recent Threads
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
» Quick Links
|
|
|
Linear Mode
