Anybody mortgage free ?
edmundfitzgerald
Posts: 4,306 ✭✭
Not a thread to brag, but just wondering how many paid/pay extra on their mortgage each month to pay off the deed quicker.
I got a 30 year loan in 1992, and finished paying off the house in 2005. Took us 13 years to pay off a 30 year mortgage.
I think Ben Franklin said, "It's against my principle to pay interest." Love that quote.
I got a 30 year loan in 1992, and finished paying off the house in 2005. Took us 13 years to pay off a 30 year mortgage.
I think Ben Franklin said, "It's against my principle to pay interest." Love that quote.
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Just remember.....even in NORMAL economic times, your dollar will never be more valuable than it is right this second. Imagine that phrase during very high inflationary periods! Could I afford to send in an extra $1,600/mo on my current mortgage in order to have it paid off in 10 years as opposed as 25? Sure I could. But would it make more sense.....IF I expected a period of high inflation on the near horizon......to take that extra money and buy silver instead? You bet it does!
(or hours)
I'm really looking forward to selling an ounce of gold for half a million dollars and paying off my mortgage balance, and having enough left over for a loaf of bread and a gallon of milk
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mariner67, and Mikes coins
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When the bankers decide they don't want the peasants paying
off mortgages with "cheap dollars," the Mortgage Protection
and Equalization Act will be signed into law.
As I have said many times, the window to get a "free house"
will not be open forever.
I don't know when that widow will close, but I do know they
won't give me a multi-million-dollar shopping center for a few
gold coins.
The smart/correct/safe play is to "time" - the best you can
guess - the cashing out of SOME metal profits to satisfy any
existing mortgages.
The banksters' plan has ALWAYS been to have almost ALL of
the real property back on their side of the table BEFORE the
paper money turns to caca. They have done a pretty good
job at it in the past few years, but are still way behind the
curve. If they get caught short by a premature currency crash,
their govt will bail them out and your mortgage will be quickly
"repriced" in the "new currency."
I don't know what the bankers' pain threshold is, but it will end
long before the peasants make the first mortgage payment with
Zimbabwe-style currency.
Folks holding out until the "last minute" are NOT going to get
"free houses."
Don't want or need the mortgage anymore.
bob
so why don't I have any $$$ ?
answer: because I collect coins !
Southampton home (currently under contract for sale) has a mortgage which will be paid upon closing.
So I will be mortgage free in one month.
But wait, there's more!
I am 61 y/o and have tax-sheltered money. My financial advisor told me that when I pull money out of these tax shelters (after age 70.5), I had better have a mortgage. I wish somebody could explain that to me. The financial advisor is really, really sharp. He has been mentioned on Cramer's show many times as a man who is great at picking stocks & beating the Lipper average.
Proud recipient of two "You Suck" awards
No debt here - mortgage or otherwise. It's a great feeling.
Isn't it because the tax shelters only defer taxes, they don't eliminate them? I think that what he's saying is that a mortgage deduction will still offset some of the taxes on the gains that are still taxable when you finally pull them out.
Frankly, who knows what the tax rates might be in a few years? Every indication is that tax rates will be going UP.
Furthermore, is the mortgage deduction (continued payments) more desireable, or is being debt-free more desireable?
I'm not sure that I entirely agree with your financial guy.
I knew it would happen.
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If, in the meantime, PMs shoot to the moon, I will sell them and pay off the note even earlier. One thing doesn't preclude the other.
and don't get me started on financial officers.
I think 3/4 of them are inept and the remainder are extremely smart but 'mislead' you by recommending the 'conventional' way of investing which ends up being the wrong way .
"“Those who sacrifice liberty for security/safety deserve neither.“(Benjamin Franklin)
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<< <i>Housing prices should crash during hyperinflation because credit markets will dry up. I think anyone sitting on the right assets will be able to buy real estate for cheap, not just their own home if they even want it assuming a fixed mortgage. >>
Can anyone explain this to me in an intelligent manner?
Here's a warning parable for coin collectors...
Inflation is real, hyperinflation maybe. So, if taxes or insurance go "to da moon" I could lose the house whether I had a mortgage or not.
Now the extra cash goes to pm's as an insurance policy.
No other debt and I am up to 4 oz's of silver.
<< <i>Worked my tail off to be debt-free after the real estate bust in the late 80s. Never had a mortgage since. I preach to my kids to stay out of debt if they can, and to get their mortgages, car loans and credit cards paid off). Best interest return on your money these days is to invest in paying off your consumer debt (at least if you're not into PMs like their dad
Received the same advice from my parents. Paid off the mortgage in 2009,no car payments and no credit card debt. 100% debt free! At my age (33 years old),I'm proud that not many can say this.
In hyperinflation what bank is going to be putting out fixed rate mortgages at a low interest rate? None. The variable rate mortgages will have interest rates skyrocketed, so where does that leave the housing market?
Nobody will be buying. When nobody is buying prices fall to where people can afford to buy.
Does anyone really think in hyperinflation the housing prices will go way up? People will be having to pay high food prices, high gas prices, and the last thing they can afford is high home prices.
If this is not true then why are home prices today falling? Gold is up, silver is up, gas is up, food is up, but home prices are down. In hyperinflation it would be much worse, with extreme poverty all around us. Home prices can't fight that.
Regards
Kip
Now my home is worth about $5k-8k less than we owe on it. I don't sweat it too much although now I wish we would have paid off our other debt with real money rather than refinancing to do so.
I'm two payments away from paying off my vehicle and 3 payments away from paying off the wife's.
Aside from our home, we will be debt free this summer.
Click on this link to see my ebay listings.
<< <i>Well, let me be the first to say I am not mortgage free. I purchased my home in 2007. It appreciated some over a couple years and we refinanced to get a slightly better rate and paid off our credit debt with the extra $$.
Now my home is worth about $5k-8k less than we owe on it. I don't sweat it too much although now I wish we would have paid off our other debt with real money rather than refinancing to do so.
I'm two payments away from paying off my vehicle and 3 payments away from paying off the wife's.
Aside from our home, we will be debt free this summer. >>
This is a similar situation that I'm in. Built our house on 20 acres in early 2003 for $229K. Refinanced in late 2009 @ 4.6% for 30yrs adding some addtional debt. (Like Brian, I wish we would have busted our butt to pay that additonal debt off with real money instead of rolling it into the mortgage, but it wasn't a horribe huge amount). Now we owe $249K on a house that appraises for $429K, no car payments, no other debt. My wife quit her real job back in October and started her own business so the income has been cut pretty good so nothing much extra to buy PMs.
We are just getting started with busting our butt to pay off the house and become debt free. I think the peace of mind of not having any debt hanging over you outweighs the tax benifit. Like someone else on here said, I will pay to the g'ment what I owe them when I don't have to pay the bank a hiney load every year.
Too many positive BST transactions with too many members to list.
lawn fertilizer, tree trimming and removal, etc., etc., etc.
I wonder if anyone ever did a 30 year cost analysis on renting a home at $1,500/month as to paying a mortgage at $1,500.00 a month and
see who does better in the end. Just the dollars and cents, not the sense of it all.
<< <i>The renting versus owning issue is an interesting one. When you rent you don't have to fork over property taxes, home improvements,
lawn fertilizer, tree trimming and removal, etc., etc., etc. >>
All of that is built in to the rent you are paying.
Because of people like that, I was able to quit my job and "retire" last year at the ripe old age of 41
FWIW: I owe maybe 6 years on a 15 year mortgage at 4.125% fixed for my home mortgage.
--Severian the Lame
It's a nursing home and really is a hell hole.
But I have to buy health insurance now. I qualified for COBRA insurance and pay $360 a month. But there is a deductible and I have to pay the first $1,250 each year of any medical bills.
COBRA ends in 18 months by law and I will be 64. So until medicare kicks in at 65 I will be uninsured for one year.
Having said that; now I will tell you that even though I have no mortgage, the damn taxes and insurances are many many times over what the mortgage used to be. People and businesses are moving out of this town and out of Connecticut due to insanely high taxes. The new governor wants to raise taxes and the state income tax, plus increase the gasoline tax.
<< <i>The renting versus owning issue is an interesting one. When you rent you don't have to fork over property taxes, home improvements,
lawn fertilizer, tree trimming and removal, etc., etc., etc.
I wonder if anyone ever did a 30 year cost analysis on renting a home at $1,500/month as to paying a mortgage at $1,500.00 a month and
see who does better in the end. Just the dollars and cents, not the sense of it all. >>
If it were only that easy. The house if a 30 yr fixed while I bet almost everywhere rent has risen since 1981. A house is yours, at the end of 30 yr. your cost goes down while your rent goes on until you die. In addition the lifestyles are very different, you have a yard and some privacy in a house and when you get a family it's hard to rent a place with that kind of room.
A house isn't an investment to me but something that's required throughout your life. The sooner you pay it off the better off you are. If you lose your job and it's paid off that's one less major issue to have to address. JMO
Some of it has to do with the lifestyle and some with the age/needs.
Younger folks, that are still in college or establishing themselves, are usually much better off renting.
Once a person has family, a good job, and somewhat is established/settled, I think home ownership, done properly, is usually more beneficial.
Renting has, to me, too many restrictions at this point in life. I like pets, and not all of them allow pets. I like to be able to do what I want to the place (remodel, paint, etc). I like to NOT have neighbors right on top of me. I like to have a real yard for my kid to play in. All of these are better with a house.
I don't like to fix things myself, when things break. I don't like feeling rooted if there is a better school for my kid to go to. I don't like losing money if I sell at the wrong time. I don't like real estate agents and all the fees. Renting is better for not putting up with those things.
That all said, I am quite glad I have a house and don't rent. I also have a mortgage, but I am ok with that.
I've been told I tolerate fools poorly...that may explain things if I have a problem with you. Current ebay items - Nothing at the moment
Now my 400K house is worth 260K. I used money that I would have otherwise used for PM purchases or blue chip stocks at the market bottom in 2008. Wish I could turn back the clock and listen to my instinct instead of some "financial guru".
Yeah its great to have an extra $1500 a month but theres no mistake.... I messed up on the easest financial call of the last 10 years !!!
<< <i>We paid off the mortgage early (along with all other debts) 3 years ago because Dave Ramsey told us to. It was the stupidest financial decision of my life !!!
Now my 400K house is worth 260K. I used money that I would have otherwise used for PM purchases or blue chip stocks at the market bottom in 2008. Wish I could turn back the clock and listen to my instinct instead of some "financial guru".
Yeah its great to have an extra $1500 a month but theres no mistake.... I messed up on the easest financial call of the last 10 years !!! >>
And this is the essence of my 1st post in this thread. Even for those who could afford to make an extra $1500-$2000/mo payment on their mortgage, why would you? You are taking dollars right now.....that will NEVER have a higher purchasing power.....and handing them over to the bankers. So you are basically paying in strong dollars today, in order to avoid spending weaker dollars tomorrow. Maybe im the moron who doesnt get it, im NOT a financial genius at all. I could literally afford to triple my monthly mortgage payment right now and have the house paid off by 2016 rather than 2038....its a real option for us. But that would require a major slowdown in PM aquisitions, family vacations, and the general fun things we do in life. But i'd much rather spend that extra monthly cash on silver and gold bullion....vacations....shopping sprees for my wife and kid....and other things that make life actually worth living.
Now, a disclaimer: Our rate is fairly low, AND we owe more on the home than its current value (bought in August of '06). So those 2 factors probably influence my decision to make just the minimum required payments. If we had a higher rate, or the housing market was stronger/more stable, then there might be incentive for paying it off faster. Also, as a ratio of our current take home income, our mortgage payment is absolutely miniscule...its literally 18%. As raises/promotions come along, that ratio will get even smaller still. Perhaps this is why I feel no urgency to get the thing paid off as well.
Edited to add: I messed up on the income/mortgage ratio. I had neglected to factor in that I have $1300/mo coming out of my paycheck automatically for car notes. That makes our ratio actually just 16%.
Edited to say:
If my wife and I are grossing about 90K a year with a 550 a month mortgage, what are you guys bringing in with $1000 and up mortgages?
I must need to look for better work, but I can tell you, I make more than most in WV.
I agree credit card debt is foolish with the interest rates the banksters charge. But I think I can make more money trading coins by paying the 15-year mortgage according to my contractual agreement than being cash-strapped because I chose to pay off my mortgage as fast as possible.
We certainly live in an interesting time and some people (Dave calls them 'kooks') think a paradigm shift (new environment) is occurring and some of the old rules may be dated. I don't think we're going back to the way things were soon (if ever) now that we have higher structural unemployment, debt up the ying-yang, etc.
Trading coins is my sole source of income and I prefer to have the funds to jump on deals or just cruise coin shops than to be cash-strapped or be WAITING on a bunch of mutual funds to grow in value.
I suppose if I made a LOT of money on a particular coin deal then I'd pay a chunk down on the mortgage, but until then . . . . .
<< <i>I'm not mortgage free but I'm not poor because of my house payment. It's no mansion but for $550 a month I have a lot of play money and happy, simple, country life with not much hassel and big city worry.
Edited to say:
If my wife and I are grossing about 90K a year with a 550 a month mortgage, what are you guys bringing in with $1000 and up mortgages?
I must need to look for better work, but I can tell you, I make more than most in WV. >>
You are bringing in more than the U.S. national average of about $56,000 household gross. We have a $1630/mo mortgage with a combined gross income of about $183k. You have a very low mortgage/income ratio as well....not all people are so lucky. Far too many bit off more than they could chew on the promises of a continuing housing market boom. I was approved for a $450k loan in 2006 when we started home shopping. I almost threw up! We went the smart, more conservative route and bought a home for under $230k. The house is probably now worth $180k......but just imagine how far under we would have been had we gone the conventional "buy as much house as you can afford" route!!!
However, no one actually "owns" the home they live in. The government does. Don't believe me? Stop paying the taxes on it and see who really owns the home.
So mortgage and/or taxes = rent no matter how you slice it. With the government being the landlord.
Some "free" country.
<< <i>
However, no one actually "owns" the home they live in. The government does. . >>
If anyone sells their home, they receive all the profits after taxes and other bills, therefore they are the owner.
I knew it would happen.
<< <i>Gold, silver and platinum have helped to triple our net worth, so Dave Ramsey can simply go pound sand with his biased drivel. >>
Ramsey has some good advice but is a total idiot in some of his thoughts. He stated once on his show that gold/silver had never been used to buy anything in the past. Being a christian and all I thought about calling him and telling him he may want to read the Bible.
Dave Ramsey knows that one of, if not THE greatest stronghold and downfall of the common man in this society is the burden of debt. While he may be stuck in the "buy only growth stock mutual funds and paid-for real estate" investment mode, the main purpose he is trying to convey is to GET OUT OF DEBT QUICKLY AND COMPLETELY so you have money to do other things with. He's been proven wrong with gold and silver as of late, but has it always been the case to where gold and silver has tripled in <10 years? No. Does the average growth stock mutual fund compound over 30+ years at a good rate? Yes. Does paid-for real estate rented out make more money than a bank CD? Yes.
Too many positive BST transactions with too many members to list.
No, of course not. And that's exactly why Dave Ramsey is giving crappy advice (at the moment and for the past 10 years). He is stuck on a conventional approach in unconventional times. When he is adamantly anti-metals, he sounds as hopelessly lost as a goldbug in the mid-1980s telling everyone to "buy gold now".
the main purpose he is trying to convey is to GET OUT OF DEBT QUICKLY AND COMPLETELY
That is good advice. And if he can't adjust to the realities of today's massive debt, entitlements, unfunded liabilities and derivatives problems, he should stay focused on getting debt-free and stop right there.
Does the average growth stock mutual fund compound over 30+ years at a good rate? Yes.
That was true 10 years ago. It wasn't so true after the stock market took its header in 2008. And the main reason that the stock market hasn't crashed again recently is only because of the Fed's money production & paper-shuffling capabilities - not because companies are more productive and more profitable. Be careful, you are on thin ice, in my opinion.
Does paid-for real estate rented out make more money than a bank CD? Yes.
Lots of variables to consider in real estate. You would have to be much more specific to back up that presumption. Some folks in Nevada and Florida might disagree with you. And furthermore, a bank CD requires no work or management for its infintessimal return.
Not to be argumentative, Wes - but Ramsey's advice is geared totally toward investing novices, folks who have no clue about money management and I assume towards young couples who are only encountering the world of finance for the very first time. There is a place in the world for the Dave Ramseys, but there is also a significant downside to some of his advice, because anyone who is depending upon the stock & bond markets for their retirement security at this moment in time - is at risk, in my ever-so-humble opinion.
Maybe tomorrow is a new day, but I'll evaluate it when we get there. Respectfully, jmski.
I knew it would happen.
<< <i>
<< <i>
However, no one actually "owns" the home they live in. The government does. . >>
If anyone sells their home, they receive all the profits after taxes and other bills, therefore they are the owner. >>
Then explain to me how the non-payment of annual taxes will result in you NOT owning the home for very much longer. I own my gold....I own every item on my desk right now....I own a vehicle....I own this snickers bar. Because you have to pay taxes on property in perpetuity, you NEVER own that home. You may control the rights to the home, as long as the taxes are current. But if you think a "paid off" home is owned by you....just fall behind on the taxes and see who truly owns that piece of property.
<< <i>
<< <i>
<< <i>
However, no one actually "owns" the home they live in. The government does. . >>
If anyone sells their home, they receive all the profits after taxes and other bills, therefore they are the owner. >>
Then explain to me how the non-payment of annual taxes will result in you NOT owning the home for very much longer. I own my gold....I own every item on my desk right now....I own a vehicle....I own this snickers bar. Because you have to pay taxes on property in perpetuity, you NEVER own that home. You may control the rights to the home, as long as the taxes are current. But if you think a "paid off" home is owned by you....just fall behind on the taxes and see who truly owns that piece of property.
Well don't pay taxes on food, fuel, or a vehicle and see what you get. There's taxes on everything including your income. I'm not sure what the point is like taxes only apply to a house.
<< <i>
<< <i>
<< <i>
<< <i>
However, no one actually "owns" the home they live in. The government does. . >>
If anyone sells their home, they receive all the profits after taxes and other bills, therefore they are the owner. >>
Then explain to me how the non-payment of annual taxes will result in you NOT owning the home for very much longer. I own my gold....I own every item on my desk right now....I own a vehicle....I own this snickers bar. Because you have to pay taxes on property in perpetuity, you NEVER own that home. You may control the rights to the home, as long as the taxes are current. But if you think a "paid off" home is owned by you....just fall behind on the taxes and see who truly owns that piece of property.
Well don't pay taxes on food, fuel, or a vehicle and see what you get. There's taxes on everything including your income. I'm not sure what the point is like taxes only apply to a house. >>
You are seriously missing the point. I pay the purchase price AND taxes all at once on other items....then I truly OWN them. If I bought a $200,000 house...with cash and never have another dime of income the rest of my life.....do I own it? If I spent my last, and only $200,000 on a gold....and never again made another single dime of income.....do I own that bullion?