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Old 10-18-2010, 02:24 PM
 
29 posts, read 85,151 times
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I have four houses , two in Texas and two in Florida. Is it a good idea to pay them off? By the way I am 49 years old and would prefer to be debt free ASAP.
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Old 10-18-2010, 02:35 PM
 
Location: Clear Lake Area
2,075 posts, read 4,444,665 times
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Quote:
Originally Posted by MRNI View Post
I have four houses , two in Texas and two in Florida. Is it a good idea to pay them off? By the way I am 49 years old and would prefer to be debt free ASAP.
No, I would take out a 2nd mortgage on each of them... preferably an option ARM. Then take all of the money form those 2nd mortgages and invest it into some high risk stocks... or just buy a p-diddy style shrimping boat.
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Old 10-18-2010, 02:39 PM
 
Location: Houston, TX (Bellaire)
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Do you have something to do with the money that would return a better rate then what you pay for interest plus your interest tax deduction. If so then yes, if no then no.
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Old 10-18-2010, 02:41 PM
 
488 posts, read 1,382,831 times
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Yes...No....Maybe....I don't know....Should I have a cheese sandwich on Friday ?
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Old 10-18-2010, 03:11 PM
 
Location: Pearland, TX
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I suppose if you have the cash and are earning a money market rate of say 1.1%, then you have a negative arbitrage on against the mortgages. Pay them off.

Ronnie
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Old 10-18-2010, 10:32 PM
 
29 posts, read 85,151 times
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Here is one reason to payoff:
These days the interest rates on mortgages are anywhere from 4 to 5%.
What other investment can give you a profit of more than 5% ? Therefore I think it is better to pay off the houses ASAP.
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Old 10-19-2010, 06:00 AM
 
Location: Fondren SW Yo
2,783 posts, read 6,673,908 times
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Quote:
Originally Posted by MRNI View Post
Here is one reason to payoff:
These days the interest rates on mortgages are anywhere from 4 to 5%.
What other investment can give you a profit of more than 5% ? Therefore I think it is better to pay off the houses ASAP.
You are much better off going with the cheese sandwich option.
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Old 10-19-2010, 07:24 AM
 
Location: Fulshear
1,326 posts, read 3,450,137 times
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Quote:
Originally Posted by rb4browns View Post
You are much better off going with the cheese sandwich option.
I agree. Without mayonnaise, preferably.
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Old 10-19-2010, 07:51 AM
 
Location: Houston, TX (Bellaire)
4,900 posts, read 13,729,484 times
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Quote:
Originally Posted by MRNI View Post
Here is one reason to payoff:
These days the interest rates on mortgages are anywhere from 4 to 5%.
What other investment can give you a profit of more than 5% ? Therefore I think it is better to pay off the houses ASAP.
You also need to factor in the mortgage interest deduction for your taxes. If you are in a higher tax bracket that deduction can effectively lop 1% off your real cost of the interest meaning the money may only be costing you 3 to 4%.
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Old 10-19-2010, 08:18 AM
 
115 posts, read 396,465 times
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Quote:
Originally Posted by MRNI View Post
I have four houses , two in Texas and two in Florida. Is it a good idea to pay them off? By the way I am 49 years old and would prefer to be debt free ASAP.
pay them off = debt free

A simple concept that many couldn't grasp.
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