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Great thread....depends on where you live...meaning NY/CA high income areas I would think paying of a million dollar home is a little more tough...that is why people cash out and go for cash in other areas.
We bought in late 90's in our 20's, refied 5 years ago for 15 years at 4.7 FIXED and this house will be paid off in less than 10 years(sooner because we are still applying more to principal)...We have a two family near the city (dh's)..and did the same thing at the same time..So when our Oldest goes to college 11 years from now(and our other two girls are ready after that)..We will have these two homes, plus a co-op paid off, and generating us 4 incomes (3 home rentals and a co-op).
WE havent bought our dream home yet..but now we have too.and we are going to do that on whatever one income (my dh's)..whatever that buys us, wherever it is (we are thinking of moving south in the next 2 years)..so be it.
Since we bought before the boom and have paid off so much of it...there really isnt anyway.even a catastrophic downturn, that would cause us to really "lose" any money. We contribute monthly for retirment as well.
We were building our dream home 4000 square feet a couple of years ago..but a possible job transfer caused us to back out.
Turned out to be the best move because had we not done that..we wouldnt be in a position to have college money ready for the girls.
We still enjoy life and such monetarily and can be frivolous at times..but it helps knowing that we are paying off a good investment for the future.
The property taxes here on LI are high, so that's a HUGE tax deduction right there. Because of it, I usually end up paying little or no Federal tax and only a few hundred dollars a year to NY State.
What kind of jobs do you guys have here? Even though my house is only 53K, I would love to have the choice to pay it off completely. Maybe I need to find another line of work. And I know nothing of investing so maybe thats where its all coming from. But its good that more people own their homes and not have to worry about owing anything.
The one thing you can do is make 1 extra payment per year towards the principal and if you have a 30 yr mtg you will cut it in half.
I do own my home but I was lucky to sell my house in FL before the bubble burst. I didn't make a fortune off of it, but I made enough to buy a house for cash. I was retired and had decided to move out of state. If certain things in my life had not happened, I would still be in FL, working and paying for that house.
You know, I'm not Susie Orman but to me it makes no sense NOT to own your house outright if you have the money to pay for it.
The whole idea of financing something and paying almost twice what it cost in interest over the years to get that mortgage interest write off is an idea that has been used by mortgage lenders to sell their product, IMHO.
The money you get back on your taxes in mortgage interest never equals the money you're paying to the bank so all you're doing is paying hundreds of dollars every month to banks that you could be using for other things.
It's a secure feeling when you know that your house is paid for.
We have everything paid for. Business, house and three other pieces of hunting land. We live with in out means. Very little we do is NOT deductible. We even use our dogs in our ads.
Bought the present shack for petty cash. Not pretty but it is home. Had a total make over for chump change, should be trouble free. Actually this one is a free one. Got it from the interest on the money of the last one. Probably a couple times over by now. Such a sad way to buy a shack.
Owned the former shack too. Could have bought that cash too but paid it off in 8 years. Got the big bucks when I moved. The smart dudes did the move down thing before the bubble went pop.
Owning your own house is the only way to travel. Same with the car and everything else. If I can't buy it, don't need it. Basically it is a system that turns peeps into wage slaves.
If you don't owe anybody anything, can survive bad times. The only way to sleep good.
This present system of real estate is a big sucker game. Too many peeps never can own anything, I never did understand all this refinancing crap. Just more commissions and paying the parasites to make it even "cheaper" for themselves. Must be a logic somewhere. The places writing the mortgages should never have been able to sell them so easy, should have had to be a full deal where you either can afford it going in, or you ain't qualified. H,mmmm if I owe you more, it is gettng cheaper, strange World, because the faster I go, the behinder I get.
Pay some extra every month, a full month extra payment should get a 20 year mortgage paid in about 8 years.
Way too many peeps focus on looking pretty and appearing to have the World by the arse on a down hill pull. They actually own nothing, it is all borrowed in one way or the other. Can all disappear in a flash. I sure don't think I should be paying to bail anybody of this present mess. They had to know the risks going in. They promoted this idea that your shack is an investment or quick road to riches, instead of just a place to live.
The strange logic is many never actually planned on ever owning nothing. It was all that "Lifestyle" crap and how they had leveraged their income to maximize "Buying Potential", whatever that is all about.
You got "Retired" peeps who have mortgages, many of those are just trying to weasel every dollar out of the house while keeping it afloat long enough to die. Another slick game that everybody can win. You always make money by supporting parasites, sure fired game.
The best ones are those borrowing against the house to gamble, to pay off the house. Yep, that is probably going to work. Dogs, horse, casino, the lottery, we will hit them all, lots of folks can make it work. When in doubt pick the sure fired methods. Even better if you can get the other fellow to pay for it.
We may not have a lot but what we have we own--a 10 year old house on 21/2 acres and a 2007 truck that we bought new and paid for in full! The only things we owe on are our monthly bills. Been the other route and it just doesn't pay to owe people all the time. We are far from rich, as far as money goes, but at least we feel somewhat secure. We have food, a roof over our heads, a good vehicle, our health and our families!!
We also own outright, paid cash. Own the car-paid cash. It's a good feeling to have only utilities and semi-annual prop. tax payments.
As Cynwldkat said-we have our heatlth, food, roof over out heads and a wonderful family-life is very good.
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Yeah, I own the shack
