Nope...e.g. the rates at Interactive Brokers: Margin Rates
From posts over on Bogleheads others have managed to negotiate rates close to those at IB with other brokerages...much cheaper than the posted rates.
Nicely done. With that kind of activity I definitely have you in the more freedom group.
My original point is that owning properties free and clear does NOT tie up your money.
I understand your point that there are borrowing options but paid off is a binary state.
People who want a paid off home do not borrow against it.
All the HELOC talk makes me want to see what options I have now for buying Bitcoin with house money
Who is with me?
Depends what the pension is also. Some people have a 5k-7k a month pension on this forum. If I had that I could have a mortgage and $0 saved for retirement. Everything would still be fine.
To the ones that have a mortgage in retirement, where are you taking the money from to pay the monthly payment? If you didn't have a mortgage, what would you be doing with that money you were spending on that payment?
Thou doth protest too much. Even with your explanation above I still don't know what trading mortgages is... what you wrote make no sense at all and ERD50 was just seeking clarification.... not criticising.
Though now after reading ERD50's post I think I have an idea what you are talking about... but I had no idea from what you wrote.
So yes, please go pound sand to your heart's content.
Nice of you to speak up here. You still have some spunk!
+1
Cash is paying 0.5%, why would we pay 3% for mortgage. So we are in no debt in retirement camp.
It came in handy when moving out of California. We bought a new house with mortgage, planning to pay it off after selling our CA house. Lot less pressure that way.
That’s me.
Because my pension covers all expenses, my wife’s 401k will be our inflation protector. For some, a pension can withstand a mortgage, it just depends on your specific situation.
BTW long term returns are great [emoji106]Maybe a better question than "why would we pay 3% for a mortgage" is "why have your money in cash paying 0.5%"? My annual returns have averaged over 10%, going back to the 90s.
...My annual returns have averaged over 10%, going back to the 90s.
I agree with your strategy of making additional payments to pay off your mortgage as soon as possible. Paying a mortgage payment is like putting money into a “forced saving account”. This is because part of that mortgage payment is equity. I also agree that some people buy toys with their extra money and ended up worst off than people who pays a monthly mortgage payment and use their extra money to invest. This is why carrying a mortgage into retirement can be a good thing because it also forces people to live below their means. Without paying a mortgage payment after the house is free and clear, it is human nature to spend the extra money on something else. Unfortunately that something else may not have a return of investment.DH has a pension. We paid off our mortgage a long time ago. The rates were much higher then.
When we got the mortgage, I was handed an amortization sheet. I studied it, and saw by making additional payments early on, we would save a great deal in interest expense. The total to be paid to the bank, w/o additional payments, was multitudes of the original loan. So after funding my 401k; I made extra payments on the principal.
Antidotally, I have been aware of certain persons have (based upon information they have themselves provided) used that available money to buy extra toys (fancy cars, vacations, etc.) rather than to invest in the market.
As far as a sense of accomplishment or "euphoria" that's a personal thing - and the value of such can only be assessed by the particular person involved.
YMMV.