Plus ... you do have to have a place to live.
1 posted on
06/27/2007 6:26:52 AM PDT by
BenLurkin
To: BenLurkin
That is, if you have a mortgage with 6.5 percent interest, you'd earn roughly 6.5 percent by paying it off early. Actually it's worse than that for most people because that interest is tax deductible. So you're getting more like a 4% return. NOT THAT GREAT!
To: BenLurkin
Most folks, if they didn’t have a monthly mortgage payment, would be much more liquid than they are now. And besides, while you still owe the bank money it’s not really your home anyway.
3 posted on
06/27/2007 6:34:29 AM PDT by
JamesP81
(Romans 10:9)
To: BenLurkin
Another way to measure one’s risk tolerance in this scenario is to ask, “if your home were paid off, would you take out a mortgage to invest that money in stocks?”
Personally, I prefer the security of being debt free and I am working hard to get that security. I will eventually have my income working for me, but in the meantime I prefer not to have my debt working for me....
4 posted on
06/27/2007 6:35:41 AM PDT by
CSM
("The rioting arsonists are the same folks who scream about global warming." LibFreeOrDie 5/7/07)
To: BenLurkin
Plus ... you do have to have a place to live. Paying off your mortgage and selling your home are two entirely different things.
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