Is it a good idea to pay off a mortgage? (32)
ooby_doobyAshland, Virginia USA957 Threads 29 Polls 7,670 PostsIf so, why do you think so? If not, why not?
------ This thread is Archived ------
ooby_dooby: If so, why do you think so? If not, why not?
who has a mortgage? 
------ This thread is Archived ------
yes if you can do it if you can...
------ This thread is Archived ------
If so, why do you think so? If not, why not?[/quote yes if you can aford to pay it off do so then when your free of it invest 75% of your old morgage into a retirment plan just saying 
------ This thread is Archived ------
galrads: who has a mortgage?
Well, either you have a mortgage or you've managed to pay it off or bought your house with cash or you live in an apartment (flat to my UK friends).------ This thread is Archived ------
tstone61: If so, why do you think so? If not, why not?[/quote yes if you can aford to pay it off do so then when your free of it invest 75% of your old morgage into a retirment plan just saying
That sounds like a very logical plan. Normally most people would already be on in years by the time they have enough to pay off a mortgage which wouldn't leave many years left to start building up a retirement nestegg though.------ This thread is Archived ------
You mean you can actually do that?
------ This thread is Archived ------
walledlakewizard: You mean you can actually do that?
My neighbor just retired and she had only a few payments left on hers, so she took part of her severence pay and closed it out. I think it wasn't a smart move on her part because at this point her payments were going mostly to principal anyway. I think it was a mostly psycological decision.------ This thread is Archived ------
ooby_dooby: My neighbor just retired and she had only a few payments left on hers, so she took part of her severence pay and closed it out. I think it wasn't a smart move on her part because at this point her payments were going mostly to principal anyway. I think it was a mostly psycological decision.
that may be just what she wanted the fealing of being free of a morgage is huge stress releaf for most at any time pluss the saved payments will cover for the lose of her sevrance pay ------ This thread is Archived ------
Always rented so I wouldn't know.
------ This thread is Archived ------
I guess it depends on the person, and it depends on the mortgage.
If the mortgage has a redraw facility ... then it would likely be wiser to considerably reduce the debt, which will reduce the interest, but allow the advance payment to be accessable at anytime.
eg: my mortgage is 7.5% with a redraw facility - so a $$50 000 payment against it is the same as investing the $$ at 7.5%, but with a term deposit I cant touch the money for the term of the investment, with a redraw facility I can withdraw the money with no penalties
your still making the money work for you, but one way you have greater access to it, should you need it.
If the mortgage has a redraw facility ... then it would likely be wiser to considerably reduce the debt, which will reduce the interest, but allow the advance payment to be accessable at anytime.
eg: my mortgage is 7.5% with a redraw facility - so a $$50 000 payment against it is the same as investing the $$ at 7.5%, but with a term deposit I cant touch the money for the term of the investment, with a redraw facility I can withdraw the money with no penalties
your still making the money work for you, but one way you have greater access to it, should you need it.
------ This thread is Archived ------
It’s smart to pay off a Mortgage ahead, preferably with a good cash down payment to start and putting a little extra money in to prepay or by making the house more valuable with upgrades and repairs.
Reverse Mortgaging is very popular with retirees now. If the house is paid for, they plan and organize to use the equity of the home to receive a monthly paycheck. This drives down the value of the house, but some figure that since they don’t know the longevity of their life, it’s worth the effort.
What bites some people is when they lose their jobs or go through a Divorce and can’t pay the Mortgage. They lose the money most times in Bankruptcy.
Reverse Mortgaging is very popular with retirees now. If the house is paid for, they plan and organize to use the equity of the home to receive a monthly paycheck. This drives down the value of the house, but some figure that since they don’t know the longevity of their life, it’s worth the effort.
What bites some people is when they lose their jobs or go through a Divorce and can’t pay the Mortgage. They lose the money most times in Bankruptcy.
------ This thread is Archived ------
There's a financial investor I listen to on the radio. He says it's always better to pay off your house. In some states you may your mortgage exemption (or part of it) for tax purposes, but factoring in your interest payment, you always come out ahead by paying off early.
I think I probably agree w/him.
I think I probably agree w/him.
------ This thread is Archived ------
In response to: If so, why do you think so? If not, why not?
Ooby, come on.. you know there is no one-fits-all answer.
Let's say, for example, I'm a single person and I want to buy a piece of property. Let's say I have no kids or my kids are bums, so I'm not concerned about inheriting the property on. So let's say I'm 50 years old and I take out a 30 year mortgage to keep the payment low... now why the bleep would I want to pay that off?
Build equity? for what? So that the state or the hospital can take it when I'm decrepit and need care?
Many different scenarios where the circumstances dictate what the best choice is.
------ This thread is Archived ------
Years ago it was very popular to pay off your mortgage. I seem to remember reading about people who would sink a post in their front lawn with some kind of ornament on top to show to their neighbors that their house was paid off. It was a status symbol. I doubt anybody does that anymore but it's still a goal of lots of people.
With todays low rates it seems to me to make a lot more sense to increase the mortgage amount and length of the loan while lowering the interest rate to the currant low rates and use the money to invest in some high yield securities.
With todays low rates it seems to me to make a lot more sense to increase the mortgage amount and length of the loan while lowering the interest rate to the currant low rates and use the money to invest in some high yield securities.
------ This thread is Archived ------
ooby_doobyNow is the time to purchase a Mortgage if you can afford it. There are some great deals out there.
------ This thread is Archived ------
Not having a mortgage feels good. Maybe it's just in my mind, I don't know. I wouldn't have any qualms about taking out a reverse mortgage either if I needed it. Not leaving anything to anyone LOL 
------ This thread is Archived ------
ooby_dooby: If so, why do you think so? If not, why not?
I think you will get answers in each direction on this question and it depends on each persons circumstance. Some people just feel more secure with little or no debt and that is not a bad thing. The opposite extreme to the debt issue is our own congress. They have the country in a bad position and a lot of people evidently act like our congress and could care less about their debt.
------ This thread is Archived ------
mustbnutz: I think you will get answers in each direction on this question and it depends on each persons circumstance. Some people just feel more secure with little or no debt and that is not a bad thing. The opposite extreme to the debt issue is our own congress. They have the country in a bad position and a lot of people evidently act like our congress and could care less about their debt.
they may be your congress, i couldn't and didn't vote for any of them. 
------ This thread is Archived ------
galrads: they may be your congress, i couldn't and didn't vote for any of them.
Regardless of who you voted for the congress is our congress and we always live with that fact{you and I may not like them,but they are our congress}..............
------ This thread is Archived ------
This Thread is Archived
This Thread is archived, so you will no longer be able to post to it. Threads get archived automatically when they are older than 3 months.
« Go back to All Threads
« Go back to All Threads
More Threads
I'm a 53 YEAR'S YUNG MAN that lives back in the 80s
More Proof The GOP is a Criminal Organization
The GOP Representatives owned by Vladimir Putin
who shaped your life?
Who will be The Last Person To Post... VERSION FOUR
biggest lie
Would you hire this guy - for any job?
The Real Stormy Story
Karen McDougal - Playmate Model will testify in Hush Money Trial
The weird and the random facts around the world
More Threads
Report threads that break rules, are offensive, or contain fighting. Staff may not be aware of the forum abuse, and cannot do anything about it unless you tell us about it. click to report forum abuse »
If one of the comments is offensive, please report the comment instead (there is a link in each comment to report it).
If one of the comments is offensive, please report the comment instead (there is a link in each comment to report it).
Stats for this Thread
2,173 Views
31 Comments
in Advice
Created: Nov 2011
Last Viewed: Apr 23
Last Commented: Nov 2011
0 Likes
Related Forums
- I'm a 53 YEAR'S YUNG MAN that lives back in the 80s
- More Proof The GOP is a Criminal Organization
- The GOP Representatives owned by Vladimir Putin
- who shaped your life?
- Who will be The Last Person To Post... VERSION FOUR
- biggest lie
- Would you hire this guy - for any job?
- The Real Stormy Story
- Karen McDougal - Playmate Model will testify in Hush Money Trial
- The weird and the random facts around the world