U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Retirement
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 01-31-2018, 06:48 AM
 
1,139 posts, read 793,942 times
Reputation: 2140

Advertisements

We are mortgage free and renting by choice. Our next buy will be cash and our forever home. For now, we love having no debt and not being shackled to a structure.
Reply With Quote Quick reply to this message

 
Old 01-31-2018, 06:49 AM
 
72,000 posts, read 72,020,102 times
Reputation: 49561
in that respect you eat every day don't you ? you wear clothes ?

expenses are just that .
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 07:09 AM
 
653 posts, read 340,322 times
Reputation: 895
You have to live somewhere right? By far the most economical way is by having your home paid off completely. Cheap Xpat locations notwithstanding. In our case if we rented, our standard of living would go down, as to rent a home like the one we live in would be very expensive. If we rented we would have a lesser property (to live in) in a less desirable location. so there are trade offs.

Example: $500k home to Rent would be approx. $3,500 - 5k a month (Using 1% pm Rule) Would you pay that kind of Rent? Probably not, you would pay >$3000pm

Having a fully paid off home that we actually live in, played a major part to our Early Retirement at 55.
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 07:19 AM
 
66 posts, read 20,899 times
Reputation: 61
Quote:
Originally Posted by jr6035 View Post
We paid off our house in 2008, sold it in 2013. Socked away our equity in CD's. Now we rent. Are we considered "mortgage free" We are totally debt free except this rent. Looking to buy a home with cash, but this market is too hot. Thank You. By the way, I'm retired.
No, I would not consider you mortgage free. I would consider you a renter.
Mortgage free means you own your home and have no mortgage on it.
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 07:22 AM
 
14,025 posts, read 7,477,867 times
Reputation: 25693
I guess if you sold your home, invested the money, and used your 4% withdrawal rate to pay the rent, that’s equivalent to owning a paid for home.

There are people in the high COL places like NYC, Bay Area, Boston, DC, etc who do exactly that.
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 07:25 AM
 
72,000 posts, read 72,020,102 times
Reputation: 49561
you are everything free technically you don't have or use. but the term applies to a specific meaning relating to owning a home .
a renter can be debt free if they owe nothing . i would never refer to it as only mortgage free nor would i include the fact i have to pay for a lifetime of food ,shelter , clothing or any thing else as debt unless it is something i currently owe
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 07:39 AM
 
1,137 posts, read 572,760 times
Reputation: 4371
Quote:
Originally Posted by tams3757 View Post
No, I would not consider you mortgage free. I would consider you a renter.
Mortgage free means you own your home and have no mortgage on it.
Yup. Under those ascribed criteria, I should be considered 'Yacht-Maintainance Free' too.

Course...I don't own a yacht...
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 12:17 PM
 
Location: West Madison^WMHT
3,282 posts, read 3,145,025 times
Reputation: 4096
Post You're only "mortgage free" if you own your home, free and clear. Would you say a homeless person is also mortgage free?

Quote:
Originally Posted by tams3757 View Post
Mortgage free means you own your home and have no mortgage on it.
That's the normal usage of the term.

The unstated point of the term "mortgage free" is owning a home free and clear.
Reply With Quote Quick reply to this message
 
Old 01-31-2018, 04:30 PM
 
234 posts, read 179,037 times
Reputation: 321
Quote:
Originally Posted by Sharpydove View Post
We are mortgage free and renting by choice. Our next buy will be cash and our forever home. For now, we love having no debt and not being shackled to a structure.
Exactly
Reply With Quote Quick reply to this message
 
Old 02-01-2018, 07:45 AM
 
660 posts, read 326,612 times
Reputation: 1974
"Mortgage-free" means you live in your own home with no monthly payment expense be it mortgage or rent. Does not include living with someone for free.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Retirement
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top