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my son has a small home in scarsdale in westchester .his taxes are 1650.00 a month. even the smallest homes that are not in dis-repair are in the 7 figures ..
the owner of the company i worked for pays 40k a year in lloyd neck harbor in long island .
My cousins in Westchester County pay $1-2k/mo in property taxes on their homes. Since that is what everyone around them is paying, it seems normal. Their homes are smaller older and have more upkeep than mine and I pay $400/mo. But mine is worth half to a third what theirs is. They think that is hilarious. They would never move, though.
Just curious, what kind of home values and sf are you talking about for those taxes/mo? Approximately, no details.
2 story, 2300-2500 with single car detached garage. Mine is 3Br/2Ba 2400sf brick colonial w/slate roof, with detached 26 x26 2 car with heat/AC and finished 12x22 room over cars. About $450k.
As far as I know, you can't get a HELOC once your house is paid off. In order to have a second mortgage, you need a first. I tried it once and was offered a "low rate credit card" instead. The first time buyer thing sounds like they were setting up a new first mortgage.
Maybe things have changed -- it's been awhile.
A HELOC (Home Equity Line of Credit) uses the equity in one's home as collateral for the line of credit. Of course one can get a HELOC on a paid-off home, since what matters is one's equity in the home.
My point in this thread was that banks have made it significantly lore difficult to get a HELOC ... almost as if one were applying for a primary mortgage .
A HELOC (Home Equity Line of Credit) uses the equity in one's home as collateral for the line of credit. Of course one can get a HELOC on a paid-off home, since what matters is one's equity in the home.
My point in this thread was that banks have made it significantly lore difficult to get a HELOC ... almost as if one were applying for a primary mortgage .
You're probably right.
I don't know if I will get a HELOC. I have no mortgage and we paid off and closed out our HELOC when we paid off the mortgage. At them moment I have no need for it. I have reportable income so I am fairly sure I can get a HELOC should I need it.
I personally would prefer that I pre-plan for any major purchases and maintenance issues.
Every situation is different, as is how a paid off home makes you feel, which can be very important for some. We paid off our home in our early 40's. No mortgage now for 10 plus years, 1400 dollars a year property tax. We have been saving 75 percent of our salaries, both 6 figure, since the mortgage was paid off.
Now going to do a remodel and will use a home equity loan to do it. Low interest, tax deduction and it makes no sense to us to withdraw funds that are averaging 10-14 percent annually for the past several years. As another poster said, debt is a tool, provided you're in the right situation, and should be used as one.
If you sleep better at night with a paid off mortgage, then that should be what is important to you, not what others think.
one thing you have to keep in mind is that channeling extra money in to investments later on in life once the mortgage is paid can have far different results than feeding that money in in smaller amounts earlier .
it is time in the markets that grows large sums of money. the less time you give it the more you increase the chances of hitting a stretch with below average performance.
so many of those who feed the extra money they had over the years in to the mortgage and then take that money not being spent on the mortgage later and invest it. they usually end up coming up shorter than they would have been had they invested all along using smaller amounts starting younger
Last edited by mathjak107; 08-11-2017 at 05:58 AM..
one thing you have to keep in mind is that channeling extra money in to investments later on in life once the mortgage is paid can have far different results than feeding that money in in smaller amounts earlier .
it is time in the markets that grows large sums of money. the less time you give it the more you increase the chances of hitting a stretch with below average performance.
so many of those who feed the extra money they had over the years in to the mortgage and then take that money not being spent on the mortgage later and invest it. they usually end up coming up shorter than they would have been had they invested all along using smaller amounts starting younger
Agreed, you are absolutely correct, but for us at the time, the psychological impact of having a paid off house was more important. We were willing to trade that "comfort" for lower overall growth in our portfolio. Especially when you know that you will have 2 pensions that will replace 75 percent of pre-retirement income. SS, IRA/401(k)/457 are just an added bonus. The kicker for us was health care coverage for life.
i certainly can understand that . many times there will always be a discrepancy between best financially and best mentally .
the only issues are when the mental interferes with not having enough financially to get through rough patches . then being house rich can suck compared to having more accessible cash .
many lost their heloc credit lines in 2008 and their jobs .counting on their home as their piggy bank ended in disaster .
Agreed, you are absolutely correct, but for us at the time, the psychological impact of having a paid off house was more important. We were willing to trade that "comfort" for lower overall growth in our portfolio. Especially when you know that you will have 2 pensions that will replace 75 percent of pre-retirement income. SS, IRA/401(k)/457 are just an added bonus. The kicker for us was health care coverage for life.
How long have you been retired or are you still working. I understand fully your perspective but with time in retirement that can change.
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