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Old 10-22-2007, 04:34 PM
 
383 posts, read 1,020,759 times
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Has anyone saved up enough money here to buy a house off, with no bank loans and no interest? Like say you saved up hard enough for twenty years and have 1 mil, and decide to put 200,000 on a house the day you buy it, having no rent payments every month and only having to worry about other housing related bills like water, gas, etc. Anyone ever do this, and if not, do you plan on doing this, and is it even possible nowadays?
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Old 10-22-2007, 04:58 PM
 
Location: Marion, IN
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I did it 2 years ago. It is an incredibly stable feeling, knowing that whatever happens in your job/health/whatever you will always have a roof over your head.

I will be doing it again hopefully in the next 6-12 months. I will never have another mortgage. I don't care about the tax break. It is related to interest, which I won't be paying anyway.
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Old 10-22-2007, 05:29 PM
 
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I've owned a couple of homes free and clear but they certainly weren't worth a million...lol. It is a really free feeling, not to have a mortgage hanging over you.
I plan to sell the house I am in within the next few years and move to a far less expensive area. At that point I will buy a place cash and be done paying a mortgage for good!
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Old 10-22-2007, 05:39 PM
 
Location: Earth Wanderer, longing for the stars.
12,411 posts, read 15,936,438 times
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My family paid off the mortgage on their first house fast, by my mom working when most women did not. After that, they moved many times and just used the sale of the old house to pay for most of the new one. They had saved to pay for the difference.

They also managed to save to pay cash for their cars. Once you get in the habit of saving regularly, you really find that you have much more money than people who get a house quickly and are saddled with a mortgage and car payments all their lives. Those interest charges really add up.
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Old 10-22-2007, 05:44 PM
 
169 posts, read 573,230 times
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Yes, twice. I bought this house and my last house for cash. I have never had a mortgage and don't intend to ever have one.

My philosophy is that the purpose of a bank is to pay ME interest (on savings accounts and CDs) but never the other way around.

I have only had a car loan once, for my first car back the late 1960s. The car cost $2700 brand new (!!) and I financed $2000 of it. I was just out of highschool and working at my first job. My car payment was about $40/mo. Every other car after that, I've bought for cash. (I also don't trade in my cars every 3 years either, as many people do; I take good care of them. I have almost 100,000 miles on my 2002 car and fully intend to see if I can top the 250,000 mile mark with it.)
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Old 10-22-2007, 06:14 PM
 
392 posts, read 1,681,602 times
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I would guess the type of people that work hard to be mortgage free are probably the types that also don't have car loans or charge card debt. Seems like were going against the way most of America seems to be thinking these days
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Old 10-22-2007, 06:22 PM
 
Location: Marion, IN
8,191 posts, read 27,459,376 times
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Quote:
Originally Posted by stock66 View Post
I would guess the type of people that work hard to be mortgage free are probably the types that also don't have car loans or charge card debt. Seems like were going against the way most of America seems to be thinking these days
I also do not have a car loan, credit card balance, student loans, or any other debt. If I can't afford to buy it outright I do not buy it.
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Old 10-22-2007, 06:50 PM
 
383 posts, read 1,020,759 times
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Quote:
Originally Posted by Evey View Post
I also do not have a car loan, credit card balance, student loans, or any other debt. If I can't afford to buy it outright I do not buy it.
Student loan, I do and will have more of it. But I have been pondering whether or not it is better off to save for a house, instead of throwing it off on my credit.

I have been reading a lot about the destruction of the middle class in America, and don't want to be wrapped up in credit card debt or loan repayments. So my hopeful plan is to live in an apartment until I can afford to buy my own home completely in cash.
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Old 10-22-2007, 07:00 PM
 
2,197 posts, read 6,592,119 times
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I thought about this, but my accountant and broker both advised strongly against it. They both felt that a low fixed interest rate (just above 5%), coupled with the tax write-off made more sense, since the money could be invested for greater value elsewhere. I'm not retired, so it would probably be different otherwise. But I hate paying that mortgage and commend all of you who are debt-free!
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Old 10-22-2007, 07:08 PM
 
Location: Marion, IN
8,191 posts, read 27,459,376 times
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Quote:
Originally Posted by goodbyehollywood View Post
I thought about this, but my accountant and broker both advised strongly against it. They both felt that a low fixed interest rate (just above 5%), coupled with the tax write-off made more sense, since the money could be invested for greater value elsewhere. I'm not retired, so it would probably be different otherwise. But I hate paying that mortgage and commend all of you who are debt-free!
I am guessing that the $$$ you won't be paying to a mortgage company are not able to be invested for some reason?

If you look at the amount of interest over the life of the loan vs. the tax deduction you will likely see what I see.
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