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Old 01-30-2018, 04:55 PM
 
Location: The Triad (NC)
28,490 posts, read 62,120,010 times
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Quote:
Originally Posted by jr6035 View Post
We paid off our house in 2008, sold it in 2013. Now we rent.
Are we considered "mortgage free" ?
No; but before you sold and started renting you were.
As a renter you're paying someone else's mortgage.

Last edited by MrRational; 01-30-2018 at 05:06 PM..
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Old 01-30-2018, 05:08 PM
 
Location: VT; previously MD & NJ
2,197 posts, read 1,341,203 times
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The thing that bothers me about selling a paid-for home and then renting is: if you are using the proceeds of the house to pay rent, how many years will that money last?

(of course, to do the calculation properly you would have to factor in the costs of ownership (repairs, utilities, etc) of the paid-for house had you kept it, because a paid-for house still costs money to maintain.)
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Old 01-30-2018, 05:57 PM
 
234 posts, read 176,782 times
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To be clear, our bills are paid with my pension. My wife does contract work, and I work P/T. Basically, her income is put into her IRA. My P/T, is gravy, and after her IRA meets it's max, I put into my Rollover IRA. We live in Sherman Oaks,Ca, so those out here know we over pay for location. But my wifes work can only be done out here.
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Old 01-30-2018, 06:37 PM
 
8,191 posts, read 11,905,691 times
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Quote:
Originally Posted by jr6035 View Post
To be clear, our bills are paid with my pension. My wife does contract work, and I work P/T. Basically, her income is put into her IRA. My P/T, is gravy, and after her IRA meets it's max, I put into my Rollover IRA. We live in Sherman Oaks,Ca, so those out here know we over pay for location. But my wifes work can only be done out here.
Do you consider yourself to be retired even though you have a job and work part-time?

Do you care whether others consider you to be retired or not?

Then why be concerned whether or not others consider you to be mortgage-free?

Just as you consider yourself to be retired regardless of what others may or may not think, what matters is that you yourself consider yourself to be mortgage-free.
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Old 01-30-2018, 06:59 PM
 
6,784 posts, read 3,857,072 times
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I would consider you mortgage-free. You don't have to pay off a mortgage before you move. The inheritors of your estate don't have to pay on a mortgage or pay it off if you pass. You can't write off mortgage expense on your tax return. I've spent the majority of my adult life in a paid for home with no mortgage.
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Old 01-30-2018, 07:33 PM
 
Location: Location: Happy Place
3,688 posts, read 1,866,292 times
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You may not have a mortgage, but you have a tax bill every year.

Gotta pay, either way.
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Old 01-30-2018, 07:35 PM
 
Location: Cebu, Philippines
4,382 posts, read 1,663,688 times
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A mortgage is a long term obligation, like 30 years., Rent is a short term, maybe month to month, but one year at the longest. In practical terms, that's the real difference between the two, and if you rent, you are "mortgage-free" in the sense that you are long-term commitment free.
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Old 01-30-2018, 08:09 PM
 
Location: on the wind
7,098 posts, read 2,911,245 times
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Quote:
Originally Posted by Schmooky View Post
Technically yes, but that’s not what people think of when they hear it. It really only applies to property owners.
Arrgh! OK, hairsplitters, THIS is "mortgage free":

I retired. I no longer have a mortgage on my house, as the loan has been paid off. I do not pay rent to live there. All it costs me to live in my house are utilities, insurance, and general upkeep. Period. No property taxes here. If I chose to go rent someplace else to live in, I would be paying rent, not a mortgage. Why make it so hard?
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Old 01-30-2018, 08:50 PM
 
Location: Wisconsin
21,536 posts, read 43,982,964 times
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Quote:
Originally Posted by ansible90 View Post
(of course, to do the calculation properly you would have to factor in the costs of ownership (repairs, utilities, etc) of the paid-for house had you kept it, because a paid-for house still costs money to maintain.)
Darn right a paid-for house costs money. "Mortgage-free" may be a nice feeling, but the expenses go on. Of course, as an owner, you can always defer the maintenance. Can't do that with rent. In my case, costs of ownership (taxes, maintenance, insurance, water) would rent a fairly decent apartment in a decent area. Either way, you gotta have a certain amount of income to keep a roof over your head.
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Old 01-31-2018, 05:33 AM
 
11,976 posts, read 5,111,061 times
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Quote:
Originally Posted by XRiteMA98 View Post
I was going to say a person who rents, but heck, you are right.

You currently do not have a mortgage. You are debt free because you do not own money to anyone.

You are not mortgage free. Mortgage free is a person who owns a house that is paid off. You do not. Not anymore.
If you rent, you owe money to the landlord every month or you find yourself homeless. I don't consider that debt free. In that perspective, it's no different than not being mortgage free.
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