Should You Pay Off Your Mortgage Before You Retire? (date, income, lifestyle)
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Mine dropped from 849 in July 2020, just before I paid it off, to 811 in September, and since has bounced between 811 and 826. It once rose to 829 and promptly fell back. I am aggrieved that responsible behavior is punished rather than rewarded.
Mine was 839 and I was told that since I didn't have a mortgage or a car loan (or any same type of loan that required monthly payments excluding CCs) mine would never get better. You are right. You are punished for being responsible.
Absolutely. It should be called a "debt" score and not a credit score. Mine hovers around 790 and I'm often told to get it up I should take out other credit cards and use them or take out a loan. .
Take out a new mortgage and watch your credit score jump
Re: the bolded...Or the 3rd choice, (which is what the whole thread started over) buying WITH a mortgage, and investing the balance of the cash pile after the down payment. You get the best of both worlds, the appreciation on the "owned" home (with mortgage), and the growth on the invested funds. Certain factors would favor renting over the 3rd option, such as a location with high property taxes (would be reflected in the rent anyway), or buying a home with a lot of deferred maintenance that will result in high repairs on roof, HVAC, etc. But with a well-maintained home, in a tax friendly location, it's the best option for us. And there are many investment options beyond the stock market for those worried about the next big crash.
The myth that people have is that landlords can reflect all their expenses in the rent
That is a wrong assumption .
Markets don’t care if you have a mortgage and your competitors who also have apartments do not .
So many new buyers who get in to rentals have to operate at a loss or break even with depreciation and pay their dues for a few years .
It took us about 4-5 years before we made our first profit off rent . We were break even with depreciation.
In fact I tried raising my first tenant 25 bucks back in the 1980s and he left …by the time I got a new tenant in I lost a months rent and ended up having to roll back to market anyway
Mine was 839 and I was told that since I didn't have a mortgage or a car loan (or any same type of loan that required monthly payments excluding CCs) mine would never get better. You are right. You are punished for being responsible.
I have no debt either except for CC which is paid in full each month.
But what does it matter if you don't hold debt ?
You still get the best rates if over 800 should you ever want a loan.
Take out a new mortgage and watch your credit score jump
Actually, ours went down from 760 to 715 when we took out a construction loan, but went back up to 760 when we paid ~60% of it off when we put in our down payment.
We went cash/debit only in 2009 when we closed our company, and my the score eventually stabilized at 760. It has been there for years. I actually don't worry about it, because we have never been turned down for a loan on any item, and always have good rates. We'll see on Monday; we are going to investigate a HELOC, and we'll see what we get. We're about to add another fairly large building project.
Mine was 839 and I was told that since I didn't have a mortgage or a car loan (or any same type of loan that required monthly payments excluding CCs) mine would never get better. You are right. You are punished for being responsible.
Talk about your first world problems!
And, okay, I'll bite. How are you being punished? Is there something you can get with an 850 that you can't get with 839?
There are 55 different fico scores that are used for different industries…they can all vary so the consumer score you see or the bank card scores you get free from the credit cards are not what Lenders will see anyway
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