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

[Gary Fowler]

Yeah, those interest deductions really save you money so you need to keep that mortgage. RIGHT. So if you paid $10K in interest and your tax rate is 25% you avoid paying 2500 in taxes but you paid a mortgage company $10K to get that 2500 in savings so you actually lost $7500. I dont claim to be a money manager, but it doesnt take a genius to figure out that it better to not pay interest than to pay it. I am like Rusty, everything is paid for and now I just have to pay the government the yearly taxes in order to keep it. I would have to pay that anyway whether paying a mortgage or not. I also elect to take insurance on it, but with it paid for, that is not a requirement, but an option.

 

[MossRoad]

Yeah, those interest deductions really save you money so you need to keep that mortgage. RIGHT. So if you paid $10K in interest and your tax rate is 25% you avoid paying 2500 in taxes but you paid a mortgage company $10K to get that 2500 in savings so you actually lost $7500. I dont claim to be a money manager, but it doesnt take a genius to figure out that it better to not pay interest than to pay it. I am like Rusty, everything is paid for and now I just have to pay the government the yearly taxes in order to keep it. I would have to pay that anyway whether paying a mortgage or not. I also elect to take insurance on it, but with it paid for, that is not a requirement, but an option.

You are also mistaken. There ARE tax benefits to having a mortgage IF you make a lot of money AND you have an expensive house. Again, quoting from the article I linked to a few posts ago....

EXAMPLES:
The picture changes dramatically for a single homeowner with a house in San Francisco, where the median price is $733,400. In the first year of a home purchase, for which he puts down 3 percent, the tax benefit would be worth $17,632. If that homeowner in the 33 percent tax bracket were to hold on to his home for 30 years, the cumulative deduction would be worth $444,403. A pretty good deal.

Analyze your own situation using Dallas Morning News reporter Scott Burns' calculator. You may find that paying off your mortgage is a very smart tax move, since you get the standard deduction no matter what.

 

[dmccarty]

Yeah, those interest deductions really save you money so you need to keep that mortgage. RIGHT. So if you paid $10K in interest and your tax rate is 25% you avoid paying 2500 in taxes but you paid a mortgage company $10K to get that 2500 in savings so you actually lost $7500. I dont claim to be a money manager, but it doesnt take a genius to figure out that it better to not pay interest than to pay it. I am like Rusty, everything is paid for and now I just have to pay the government the yearly taxes in order to keep it. I would have to pay that anyway whether paying a mortgage or not. I also elect to take insurance on it, but with it paid for, that is not a requirement, but an option.

One does not take out the mortgage to just pay the bill and "save" a bit on taxes. The tax break only helps so much. But if you can take the $100,000 one SHOULD be able to make more than 3.5% mortgage. If one just takes out the mortgage and spends the money on vacations and toys, well then yes, they will loose money.

We have been able itemize of years ever since we bought a house. Before a house, it was standard deduction, today, itemizing returns us a bunch of money.

Having said, that I wish I could take most of our retirement money and pay off/down the house. I would rather we and the county own the house instead of we, the county, and the bank. The first two owners are sorta easy to pay, the bank, not so much.

Later,
Dan

 

[kenmac]

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.

I'm with you. That's less risk you have. If something were to happen to your job, the mortgage co can't take your home...O' what a relief it is !!!!

 

[Beltzington]

Congratulations and good for you, I hope to be there myself in 2+ years. Maybe you can take a portion of your old monthly payments and buy a more photogenic dog. LOL

Sorry - just read you lost him. A good dog is hard to replace but they are out there.