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To: nufsed

“Paying off your house is a false economy”

Maybe so, but having no house payment to worry about every month is fine by me!
As long as I can cough up the property tax every December, we’ll be alright.
I ain’t looking to get rich...just survive these next 4 years.


117 posted on 11/17/2008 8:28:29 AM PST by ozark hilljilly (Obama lies, the Constitution dies)
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To: ozark hilljilly
You can survive far longer AND be able to pay off your house at any time.

I think you missed the original point. You borrow $100,000 at a net of 4%. You make 8% compounding tax free. After one year you have 108,000. You paid 4,000 for the loan. After two years, you have 117,000 and still pay 4,000 on the loan.

If you have 200,000 in ten years and owe, 100,000, does that seem bad to you? Adn you'll have a death benefit.

You can draw out the 100,000 any time and pay off the house if you really can't sleep making money.

The way you're going, your asset is in equity with no rate of return, may not be able to draw it out when you need it, and if the house goes down in value, you lose a chunk of your asset.

Best wishes!

118 posted on 11/17/2008 8:35:09 AM PST by nufsed
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