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The Facebook founder refinanced a $5.95 million mortgage on his Palo Alto home with a 30-year adjustable-rate loan starting at 1.05 percent, according to public records for the property.
Are you being sarcastic? What millionaire would not pay mortgage interest?
Holding a mortgage only pays if you can invest that money that returns more than you are paying in interest.
Mortage rate is 4%. If you can find something returning 5% or 6% then it pays to have a mortgage because you can then invest that extra money and make money over and above what you are paying out.
Lots of wealth is in assets..not money sitting in the bank.
And that same principal applies to peons when deciding whether or not to pay off your mortgage.
You're paying out 4% in mortgage interest and have a stash of money in the bank earning 0.83%.
Pay off the mortgage because you are losing money each month.
Come on... how many multi-millionaires pay "mortgage interest"? Do they honestly go borrow more millions and make a monthly payment to a lender?
I should have said non-homeowners OR the entitlement group.. neither of which pay mortgage interest..
Jeez... somebody get up on the wrong side of the bed this morning or what?
lol, that is your first mistake... you are assuming.
Obama is talking about people $250K and above. They are not multi-millionaires. People of all levels (except for poor) invest in real-estate for rental purposes. Most borrow money to buy the rental properties. That mortgage deduction is a factor that is taken into account when determining the amount of rent to charge.
People buy rental properties to "make money" and if their cost is increased they will charge higher rents to pay for the increase. Guess who really pays for it... the renter who can't afford to buy a house.
Location: Just transplanted to FL from the N GA mountains
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Quote:
Originally Posted by NJBest
Are you being sarcastic? What millionaire would not pay mortgage interest?
Do you honestly think that Bill Gates has a mortgage on his home? Or Buffett? Or heck, even 1/2 of congress? I worked in mortgage lending for over 20 years, never once did I see any of the wealthiest in the town come in for a mortgage. The wealthy handed down their property from generation to generation. Or if they were buying new they paid cash. Not once did I see anyone come in and say, "I'm going to borrow 2 million on this home so I can make 20,000.00 monthly payments for 30 years, and end up paying 4 million plus for this house.
lol, that is your first mistake... you are assuming.
Obama is talking about people $250K and above. They are not multi-millionaires. People of all levels (except for poor) invest in real-estate for rental purposes. Most borrow money to buy the rental properties. That mortgage deduction is taken into account. A landlord must pay for taxes, mortgage payments, insurances, upkeep etc.... People buy rental properties to "make money" and if their cost is increased they will charge higher rents to pay for the increase. Guess who really pays for it... the renter who can't afford to buy a house.
I'm a poor person and would like to invest in real estate for rental purposes. How can I do that?
I am SO tired of buying houses for my landlords. Shouldn't I be able to buy a house for me???
Do you honestly think that Bill Gates has a mortgage on his home? Or Buffett? Or heck, even 1/2 of congress? I worked in mortgage lending for over 20 years, never once did I see any of the wealthiest in the town come in for a mortgage. The wealthy handed down their property from generation to generation. Or if they were buying new they paid cash. Not once did I see anyone come in and say, "I'm going to borrow 2 million on this home so I can make 20,000.00 monthly payments for 30 years, and end up paying 4 million plus for this house.
In case you missed it, not Gates, but still. And Buffett just based on his age alone shouldn't have a mortgage so that is a bad example.
Holding a mortgage only pays if you can invest that money that returns more than you are paying in interest.
Mortage rate is 4%. If you can find something returning 5% or 6% then it pays to have a mortgage because you can then invest that extra money and make money over and above what you are paying out.
Lots of wealth is in assets..not money sitting in the bank.
And that same principal applies to peons when deciding whether or not to pay off your mortgage.
You're paying out 4% in mortgage interest and have a stash of money in the bank earning 0.83%.
Pay off the mortgage because you are losing money each month.
There's lots of opportunity to make 5-6%. Also, keep in mind that the tax rate for investments (cap gains) is lower than ordinary income tax. You can deduce at the 35% rate, and pay the 15% rate.
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