As of today my piece of "Rural Living" is all mine!

[caver]

Congrats!
It's a good feeling and now the bank account will grow much quicker. As I got older I adopted a rule "pay cash for toys".

 

[Reyer Farms]

Congrats. Nothing like peeing on your dirt!

 

[jejeosborne]

There are a many of ways to look at mortgages. If you are big into investing, right now might be a good time to take out a 30 year mortgage. My friend, who is very savvy, was 3 years away from paying off his house and just took out a 30 year mortgage. His thoughts are, right now interest rates cannot get much lower and in the next year or two could be heading back north. He is reinvesting that money he is getting at 3.5% and hoping to double or triple his return as rates increase. In addition your interest on the mortgage is eligible on your tax return and his home will also appreciate. At any time he can pull his money out of the market and pay his house back off. I am a firm believer in having anything that depreciates like cars and toys paid for but real estate, not so much.

Non the less, Dusty you have achieved a great milestone and it feels nice having additional options at your feet.

 

[MossRoad]

There are a many of ways to look at mortgages. If you are big into investing, right now might be a good time to take out a 30 year mortgage. My friend, who is very savvy, was 3 years away from paying off his house and just took out a 30 year mortgage. His thoughts are, right now interest rates cannot get much lower and in the next year or two could be heading back north. He is reinvesting that money he is getting at 3.5% and hoping to double or triple his return as rates increase. In addition your interest on the mortgage is eligible on your tax return and his home will also appreciate. At any time he can pull his money out of the market and pay his house back off. I am a firm believer in having anything that depreciates like cars and toys paid for but real estate, not so much.

Non the less, Dusty you have achieved a great milestone and it feels nice having additional options at your feet.

That part about the interest on your mortgabe being tax deductible always makes me cringe.... It is only tax deductible IF you itemize AND you can beat the standard deduction. In our 27 years of marriage, we have always itemized and NEVER,... NOT ONCE.... EVER.... beat the standard deduction. Why? Becuase we are average, middle class income people living in a mid-sized town where housing prices are relatively cheap. It only makes sense if you have a really expensive home and make a #$@$#$ load of money. The bottom line is, for average income people, any time you give your money to someone else, it is money you will not get back.

Here's a link to a good article that I have quoted from in the past...
Keep the mortgage or pay off the house?

An excerpt from the article....

"An income tax deduction for homeownership is sacred in Americans' minds, but often the deduction doesn't add up to much. The financial advisers who tout its value probably live in expensive areas and own pricey houses, while the rest of us aren't so lucky.
Sure, mortgage interest and property taxes are tax-deductible, but the amount of interest and taxes typically paid on a median-priced home in the U.S. results in unimpressive tax benefits. If you live in the Midwest, are in the 25 percent tax bracket and you have 20 percent equity in your median-priced home, there are possibly no tax benefits at all.

Uncle Sam's standard deduction of $10,700 in 2007 for a married couple filing jointly -- available whether you own a home or not -- exceeds the value of the mortgage interest and tax deductions from the very first day of homeownership."

 

[deezler]

Well, moss road, if you file as single, it pays off big time. My itemized deductions have beat the standard for the last 6 years since I bought my condo. Loving that mortgage interest deduction. Last year I got married and filed jointly... and the itemized still won out (but not by much).

 

[dusty3030]

I'll take the stress of not having to make a note any day.
Intrest I saved and the freedom to be able to jump on my bosses desk and moon him and know I wouldn't go bankrupt in 60 days is very liberating.

 

[jejeosborne]

That part about the interest on your mortgabe being tax deductible always makes me cringe.... It is only tax deductible IF you itemize AND you can beat the standard deduction. In our 27 years of marriage, we have always itemized and NEVER,... NOT ONCE.... EVER.... beat the standard deduction. Why? Becuase we are average, middle class income people living in a mid-sized town where housing prices are relatively cheap. It only makes sense if you have a really expensive home and make a #$@$#$ load of money. The bottom line is, for average income people, any time you give your money to someone else, it is money you will not get back.

Here's a link to a good article that I have quoted from in the past...
Keep the mortgage or pay off the house?

An excerpt from the article....

"An income tax deduction for homeownership is sacred in Americans' minds, but often the deduction doesn't add up to much. The financial advisers who tout its value probably live in expensive areas and own pricey houses, while the rest of us aren't so lucky.
Sure, mortgage interest and property taxes are tax-deductible, but the amount of interest and taxes typically paid on a median-priced home in the U.S. results in unimpressive tax benefits. If you live in the Midwest, are in the 25 percent tax bracket and you have 20 percent equity in your median-priced home, there are possibly no tax benefits at all.

Uncle Sam's standard deduction of $10,700 in 2007 for a married couple filing jointly -- available whether you own a home or not -- exceeds the value of the mortgage interest and tax deductions from the very first day of homeownership."

The deduction may be a minor or no benefit for some. My main points being, 3.5% money will likely be hard to find in the future and hopefully the house will appreciate at a similar rate which will cancel out inflation.

 

[jejeosborne]

I'll take the stress of not having to make a note any day.
Intrest I saved and the freedom to be able to jump on my bosses desk and moon him and know I wouldn't go bankrupt in 60 days is very liberating.

You would still be able to moon or even leave a steamer on his desk if you invest in something liquid. Just hoping you check out all your new options that are now available. You are now blessed with things to think about while operating your tractor. The old saying, it takes money to make money.

 

[MossRoad]

Well, moss road, if you file as single, it pays off big time. My itemized deductions have beat the standard for the last 6 years since I bought my condo. Loving that mortgage interest deduction. Last year I got married and filed jointly... and the itemized still won out (but not by much).

When I was single I never beat the standard deduction either. It all depends on how much you make, what tax bracket you are in, how big your mortgage is, and if you can beat the standard deduction. And, regardless of that, when you are paying mortgage interest, you are handing money to someone else. Read that article that I linked to, plug in your numbers and then decide if it works for you or not.

 

[MossRoad]

The deduction may be a minor or no benefit for some. My main points being, 3.5% money will likely be hard to find in the future and hopefully the house will appreciate at a similar rate which will cancel out inflation.

You can only get the money out of your house if you can sell it. Then you have money, but no place to live. If you don't buy another place to live, and keep the money, you are opening yourself up to capital gains tax, which could wipe anything you gained trying to play the "mortgage your house at a low rate and invest the money for a profit game".