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Old 07-25-2020, 07:25 AM   #61
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Originally Posted by pb4uski View Post
^^^ Not a good reason to pay off mortgage...but a good reason to carry umbrella insurance.
If you have Net worth of 3 million (With no asset protection) and umbrella policy for 3 million that does not mean creditors cannot collect your 3 million. All they need is a judgment for 6 Million.

If you have a 10 million dollar house in FL. Creditors will not get hold of that asset.

BIG difference.
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Old 07-25-2020, 08:05 AM   #62
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Originally Posted by TechLead View Post
If you have Net worth of 3 million (With no asset protection) and umbrella policy for 3 million that does not mean creditors cannot collect your 3 million. All they need is a judgment for 6 Million.

If you have a 10 million dollar house in FL. Creditors will not get hold of that asset.

BIG difference.
Tell us something that we don't already know. It still does't make it aod reason to pay down a mortgage. Especially given that the chance of your getting in a situation like that with a judgement that exceeds your umbrella is somewhere between less than slim and none.

As a practical matter it is rare that a plaintiff would go for a judgement more than the umbrella unless you did something really stupid and egregious. My umbrella insurer has 2 million good reasons to provide the best possible defense, including appeals.
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Old 07-25-2020, 01:16 PM   #63
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Tell us something that we don't already know.
Have a plan. Don't sell after market drops 40%.
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Old 07-25-2020, 06:51 PM   #64
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Has anyone EVER heard anyone say they regretted paying off their mortgage?
I didn't pay off my mortgage - or rather, I choose to get one when I had the cash available to purchase outright. If I had not taken the mortgage, it would have been one of the largest financial misteps in my life. My anecdote:

In Nov. of 2009 I bought a "new", never occupied short sale in Tucson, AZ for $162K. It was/is a second home intended as a retirement home for my winters. I had the cash sitting idle at the time to pay cash. Instead, I elected to take a 2.95% 30 year mortgage and invest the cash in a portfolio of 60% SCHB (Schwab total US market) and 40% PIMIX (Pimco aggressive short term bond fund). I set up a separate account to hold the money and have made no deposits or withdrawals in the interim. The account balance went from $162K to $470K today. The house value is $359K on zillow today verse the original $162K purchase. I've paid about $40K in interest on the mortgage.

You can't buy the past, but it is far from certain that avoiding/paying off a mortgage is always wise.
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