What is your "Debt Free Date"

[two_bit_score]

It probably would seem nuts to a lot of people, but I have three 30 year mortgages I recently took out. I will be 91 years old when I'm debt free (fingers crossed). In my tax bracket, my 4% mortgages are effectively about 2.8%. I'm guessing that, over the long term, my money is better off in stocks and bonds. Of course, I could be really, really wrong, but I've done the math and made my choice.

Of course, as a backup I've got enough in "conservative" investments to cover the mortgage payoff and I've got one property on the market, just in case the real estate market wakes up.:thumbsup:

Of course it can be better to invest your money instead of pay off debt or pay cash if it brings a higher rate of return than what you are paying. stock was bought for $27 in 2008 and it sold last for $78. That's 195% increase. Pretty good for a three year return. Of course it could have gone the other way.

 

[browny]

Excellent point about using a mortgage to get back more on your taxes. I worked with all sorts of guys who thought that it was smart to have a mortgage so they would get a bigger refund on their taxes, but they never did the math on what they where paying on interest for that loan every year compared to how little that adds to their return. It's simple math, but for whatever reason, nobody wanted to run the numbers.

Eddie

I totally agree with this. It doesn't really work unless you have more than the standard deduction and then it isn't worth it. I will be debt free within 1-2 months and I am excited about it.

 

[riptides]

The reason we are in this economic mess if because of out of control debt, specifically the housing crisis.

We are in this mess because laws, rules and regulations were not followed or broken. And enforcement is just not happening.

We are also in this mess because corporations are not spending money or making new investments.

Government is all about controling other peoples lifestyle. The biggest difference between Liberal and Conservitive is to what degree they want to tell you how to live.

Your statement AMAZES me. I hope it was sarcasm and you are not this niave.

The government only played a helping hand, it certainly is not the sole cause of any one of our current financial issues. Especially the housing crisis. I hope you agree on that.

As far as government controlling a lifestyle? Where does that come from? People will always have choice.

 

[riptides]

It probably would seem nuts to a lot of people, but I have three 30 year mortgages I recently took out. I will be 91 years old when I'm debt free (fingers crossed). In my tax bracket, my 4% mortgages are effectively about 2.8%. I'm guessing that, over the long term, my money is better off in stocks and bonds. Of course, I could be really, really wrong, but I've done the math and made my choice.

Of course, as a backup I've got enough in "conservative" investments to cover the mortgage payoff and I've got one property on the market, just in case the real estate market wakes up.:thumbsup:

So your sitting on real, I mean tangible assets, that are being taxed at 2.8 percent.

I'll bet in 10-20 years if you decide to sell, you will make out well. In any case, the old adage, they don't make land anymore, comes to mind.

 

[EddieWalker]

We are in this mess because laws, rules and regulations were not followed or broken. And enforcement is just not happening.

We are also in this mess because corporations are not spending money or making new investments.




The government only played a helping hand, it certainly is not the sole cause of any one of our current financial issues. Especially the housing crisis. I hope you agree on that.

As far as government controlling a lifestyle? Where does that come from? People will always have choice.

The housing crisis is a direct result of government involvement in forcing banks to give loans to those who where not qualified to get those loans. It started under Carter who passed the Housing and Community Reinvestment Act. Community Reinvestment Act - Wikipedia, the free encyclopedia

He did this for votes from low income families and minorities. It was small enough at the time that it didn't cause to much of a problem.

Under Clinton, it grew!!!!!!!!!! If you will remember, refinancing, second mortgages and taking cash out of your equity in the house all became common. None of this was legal before, and people started spending and living it up off of what they thought their house was worth with the assumption that values would just continue to climb forever. This was what Clinton did to get votes and grow the economy.

Bush took advantage of this and allowed it to continue. Bush had many failings and this was his biggest. Granted, he didn't pass the bills, and everything was written so that it fell apart in 2006. He saw it coming and if I remember correctly, he tried three times to change the laws, but was stoped in Congress by the Dems who said there wasn't a problem. Obama's job as a comunity organizer was to go to banks and get loans for people that where turned down because of their lack of income.

Another funny thing that Clinton did was to allow the credit rating systems to change your rating on a temporary basis. A loan officer could contact the agency and ask them to rescore a person based on some new info that was never varrified. The score went up high enough to get the loan, and then the following month, it went back down to where it was before.

With people buying like crazy who could never afford a house, the houseing market took off due to all the buyers. The more houses that where built, the more they went up in value. Everyone just road the wave of higher prices and greater equity. It was a bubble and some people saw it coming. I sold my house in 2002 because I saw it coming and I was in a panic that it would collapse before I was able to sell. I was a couple years early and almost got caught in it when it did collapse with a spec home that I built and sold three times. I haven't built another spec home since then and don't think I will unless things really turn around.

We are in this mess BECAUSE of the rules that where passed by our government. Not because they where not followed. Frank/Dodd wrote a lot of the mess. They should be in jail for the laws they passed!!!!!!!! The kickbacks and payoffs to just those two is in the millions, and the rest of the country suffers.

Eddie

 

[grsthegreat]

We had the choice between paying off debt OR investing in a volatile stock market OR trying to pick up distressed properties.

First off if we invested and the market died, wed be screwed. Not that we dont have some money invested, cause we do. Just not the entire nestegg.

I looked into distressed property, but i REALLY dont want to be a landlord. This and the fact that every one we looked at looked like it was used as a meth lab, made me real leary of trying to fix them up and rent them out... just to have them look like this again by some crappy renters.

I figure that by paying off everything, then investing in other stuff later, that no matter what happens, the house and ranch will be safe from repo.

 

[karverind]

Blame Bush, Blame Clinton, Blame the Dems, Blame the Repubs.....

What the **** happened to blaming the people who signed the LOAN papers. Let them grow and prosper, orrrrrr let them FAIL.

Quit pointing the blame at everyone else. My granddad used to say that every time you point a finger at someone else.....there are 3 more pointed back at you!

And Bankruptcies..... we had a receptionist once that bitched because the bank wouldn't give her a decent rate on a house mortgage. I overheard it and had a good friend working at a local credit union. I called him to see what they could do to get her and her hubby into this house. He looked her up and said WHHHOOOOAA . She had defaulted on a loan with them. Owed them 2500 bucks. THis was in 2002.

The next time she bitched, i politely said that if she paid her debts, she would get better treatment. THat shut her up for a long time..

 

[Larry Caldwell]

Right off the bat when they started the Obamacare debate, questions where brought up on how to lower the cost of medical care. Within months, it was pretty widely known that the reason it costs so much to see the doctor is because of government regulations. That is the simple way to say that everything they do makes it more expensive to treat a patient, or get paid for treating somebody.

Instead of addressing this, they made it worse. Obamacare does not fix a single problem!!!!!!!!
Eddie

Eddie, you seem to think Obamacare has something to do with doctors. It does not, except trying to guarantee they will get paid for their work. It doesn't cost doctors or hospitals anything.

Obamacare is entirely a health insurance program, that tries to extend health insurance to millions of uninsured Americans. As Curly Joe pointed out, if Americans actually were able to afford a doctor, there would not be enough doctors to go around. That is a separate issue, and an indictment of the monopolistic practices of the medical industry.

 

[riptides]

.....
We are in this mess BECAUSE of the rules that where passed by our government. Not because they where not followed. Frank/Dodd wrote a lot of the mess. They should be in jail for the laws they passed!!!!!!!! The kickbacks and payoffs to just those two is in the millions, and the rest of the country suffers.

Eddie

Like I said the government played a role. OK, no big deal. I liken it to the government bringing a new pool of potential loan applicants to the table.

The banks and financial institutions broke rules and regulations instantiating loans to some of those applicants, in a lot of cases the BANKS own rules and policies. The government did NOT FORCE anyone or any institution to make a loan.

The banks and financial institutions saw an opportunity and pressed it to their advantage. And in the end, today, they are being bailed out due in no part to bad loans THEY made.

Sarbanes?Oxley Act - Wikipedia, the free encyclopedia

 

[Larry Caldwell]

The reason we are in this economic mess if because of out of control debt, specifically the housing crisis.
Eddie

It's a lot broader based than that, starting with out of control government debt and out of control foreign debt due to free trade policies.

Every time you buy a shirt or a shoe, you put the whole country further in debt.

It would be great if we could get the feds to balance their budget, but if we did it would slam the country into a depression that would make the Great Depression look like a Sunday school picnic. Just the state of Texas alone is the beneficiary of over $25 billion a year in defense spending. No politician is willing to push the country into a 50% unemployment rate while cancelling all the social safety nets, except for Ron Paul.

The only way out of the massive federal debt is inflation. They will just print money until there is enough to pay off all the creditors. At that point, anybody with a mortgage is going to be really happy.