Posted on 07/15/2009 6:48:43 AM PDT by Kaslin
For some folks that's the only consideration. I own numerous properties, including a large residence, and not one with a mortgage. I'm the latest in a long line of penny pinchers. Debt stinks. A good night's sleep is one of my worst indulgences, and being debt-free makes for real good sleep!
Way agreed, you can recoup your CD money in 4 years while it would take 5.5 years to pay off at 2K a month. As far as the tax savings, you will not realize 6K off your taxes just off your gross income so even if you pay a little higher taxes it shouldn’t equal 6K.
On a 100K income with no other itemized deductions there is no extra tax savings because you would take the standard deduction.
Yes and I was adding supportive comments to yours. Sorry if that was not clear.
Yep. We finished paying ours last year. It sure feels good not to have that large check going out every month.
Your post makes no sense at all.If I didn’t invest into gold I would had never received the benefit of 300%+ gain so what’s your point?I don’t argue with math maybe you want to so count me out on your silly theories.
3 percent interest??? The top rate my bank is currently paying is 2.5% for a 60 month CD. This guy had half a mil locked up for five years!
Proverbs 22:26-27 - Do not be a man who strikes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.
Own your home outright. Insofar as you "rent" the property from the government via taxes, ensure you will always have enough to pay those taxes. Then it's yours, and short of eminent domain none can take it from you.
Best post I've read all year!
So you sold all your gold.
Good for you, you are a winner.
I’m sorry if my post was confusing. In order for a tax deduction to occur, the mortgage must exist. If the home is paid for, therefore no mortgage interest to deduct, the home owner can still donate money to charity, instead of interest to a bank. That will give them a new deduction.
Why pay $10K to a bank to avoid paying $3K to the government?
Mortgage just north of 5%? Pay it off? Depends, but I wouldn’t.
If people believe we are headed to much higher inflation due to Zero’s insane Spend and Borrow policies, it would make sense to keep the low interest mortgage, hold onto the cash, in expectation of getting nice fat juicy yields on CD or bonds later, rather than burning the cash now to invest at next to zero.
If inflation doesn’t go up, and rates stay as they are now, it would probably be better to pay it, and have the certainty of no debt.
If inflation kicks up, it would be really sweet having a 5% note, when you can get 10% or more on a CD. Furthermore, the mortgage balance will seem like peanuts if inflation is high for a few years.
I remember buying my first home in the early 80s, when mortgage and CD rates were north of 15%, and envying the old geezers with their tiny $20-40K mortgages that they were paying 4 or 5% on. I’ll bet when they bought the homes initially, a 50K mortgage seemed HUGE, but then inflation gradually ate away at the real size of the mortgage.
BTW How did you ascertain her marginal tax rate.
I reiterate time to stop digging.
Correct,I was the winner and it pays the bills and has allowed my family and I to move on to greater wealth.
There are times like now where cash is king. I hate and usually avoid cliches such as this, but this cliche couldn’t be more appropiate. One reason banks are reluctant to make mortages at the present time is to conserve their cash. Corporations are doing likewise in order to protect their viability.
her mortgage balance is $100K - we do not know her original mortgage amount or payment
all my examples were- as I stated and so state again- hypothetical
As I said, good for you. You took a risk and it worked out.
Having said that, it does not mean gold is for everyone. Gold has as much risk as any investment.
But what happens if/when the government changes deductions or IRS rules on mortgage interest? Tax deductions are a variable, not a constant. No mortgage, no worry about the government going nuts.
I’ll freely admit that I’m not a student of finance or economics, but I was raised in a family where every senior member owned EVERYTHING they had, including their homes, and they had plenty of nice things outside of them.
Yep. A few years back, our mortgage interested dropped below the threshold where it made sense to itemize. Now tax time is extremely easy for us since we just take the standard.
I believe that we should exempt food and shelter from all taxation.
I only had a few more years left on my mortgage; only owed $8000, with limited income now that I am retired -—— so I paid off my mortgage. Not sorry.
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