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Tried to google this but only got some unreliable blog post that said 30% of homeowners actually totally own their homes. Anyone know how many homeowners are carrying no mortgage at all?
Something in excess of 60% of people "own" vs rent.
I can see that about half of those might be finished with the mortgage paying (as I am)...
but 30% does still seem a bit high on that scale.
According to 2 sources (pewresearch.com and the Huffington Post) 31% of homeowners have no mortgage. They also say 21% of the adult population are homeowners with no mortgage.
Msnbc says "one out of every three homeowners own their properties free and clear".
But I can't find *where* they are getting their figures from.
Let's go further and ask who many of those 31% are HELOC free?
The majority of my friends who are mortgage free have a HELOC and owe money on it.
I say that's splitting hairs.
Any encumbrance = not owned outright.
(1st, 2nd, heloc, note to Uncle Bob, whatever)
I'm old school enough to think I sleep better at night by not having a mortgage...
even though the Lawyer and Insurance agent say that the potential liability risk isn't worth it.
The compromise plan I'm considering now is to start the HELOC paperwork and account,
and recording the encumbrance too (that's the key to it)
but to not actually draw any money out (use it in lieu of Umbrella coverage).
I say that's splitting hairs.
Any encumbrance = not owned outright.
(1st, 2nd, heloc, note to Uncle Bob, whatever)
I'm old school enough to think I sleep better at night by not having a mortgage...
even though the Lawyer and Insurance agent say that the potential liability risk isn't worth it.
The compromise plan I'm considering now is to start the HELOC paperwork and account,
and recording the encumbrance too (that's the key to it)
but to not actually draw any money out (use it in lieu of Umbrella coverage).
What do these mean? We also own our house outright. Never heard any of these. Well, we're young so maybe that's why we never heard of these. lol. Anyway, please explain.
I say that's splitting hairs.
Any encumbrance = not owned outright.
(1st, 2nd, heloc, note to Uncle Bob, whatever)
I'm old school enough to think I sleep better at night by not having a mortgage...
even though the Lawyer and Insurance agent say that the potential liability risk isn't worth it.
The compromise plan I'm considering now is to start the HELOC paperwork and account,
and recording the encumbrance too (that's the key to it)
but to not actually draw any money out (use it in lieu of Umbrella coverage).
Umbrella is VERY cheap, everybody should have it. I think my 3 million coverage is only about $200 a year. That's $16 a month. I have teenagers that drive. The liability risk is not worth it if your house is paid for or not. I'll take the paid for house and $16 a month for coverage over a piece of crap HELOC any day.
There should be a third option, too: How many even own any equity in their home?
Really, American households come in four, no five categories:
1. Rent
2. Mortgaged, owe more than value
3. Own equity, but still mortgaged
4. Own outright, clear of mortgage
5. Also own a second home or vacation property, or an income-generating rental.
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Anyway, please explain. 
