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what is the best way to pay off your home

Discussion in 'The Okie Corral' started by Mr King, Feb 9, 2010.

  1. Mr King

    Mr King XD40 Service

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    I just recieved a nice sum of cash and could very nearly pay off my home.

    I would still owe about $2,000 if i used all the money.
    Any Advise?
     
  2. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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  3. bocephus549

    bocephus549 Bo Knows.......

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    Or check.
     
  4. ddbtoth

    ddbtoth

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    Do it--people always say you get to write off the interest on the mortgage. It is no where near what you actually pay in interest, so you are wasting money on interest payments. I'm paying 500 extra a month, knocks my payment schedule down from 30 years to 14, saving me 85,000 dollars over the total payment history.
     
  5. kestrou

    kestrou Pin Member #4

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    Lots of factors to consider...

    Do you have other (higher interest) debt?

    Do you already a nice nest egg put away of readily accessible cash?

    What's your age and do you have a good start on your retirement needs?

    I'm sure it would free up cash flow, so DO YOU HAVE THE DISCIPLINE TO PUT THE MONEY THAT WOULD HAVE GONE TOWARDS MORTGAGE TOWARDS A LASTING INVESTMENT?! :)

    Good luck - and good position to be in! ;)

    kestrou
     
  6. RustySocket

    RustySocket

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    The only way I wouldn't pay off my home was if I could invest the money in something that would net me more than what I was paying in interest.

    If you find that.... let me know
     
  7. feelinlucky?

    feelinlucky?

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    Do it, then once house is completely paid off, have money you usually spent on mortgage direct deposited into a savings account...otherwise you will blow that extra money and feel like you didn't gain anything.
     
  8. ddbtoth

    ddbtoth

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    Help me out here Rusty--I don't follow what you mean.
     
  9. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    Better idea:

    Put it on your American Express card to get the points, then use the cash to pay the AMEX off.
     
  10. sourdough44

    sourdough44

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    You have to look at and consider your whole investment/money/debt picture. Some things to consider, your age, retirement accounts,any other debt & large bills, life event plans in the near future. IF one carries debt, the house is about the best place to have it. I totally agree that the home mortgage deduction is over rated. The real key is to reduce taxable income. I have not had a house payment for over 5 years. The things I do work for us but may not be right for the next guy.
     
  11. geronimo509

    geronimo509

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    I would pay it off. and take some of the advise from previous posters.
     
  12. Camper10

    Camper10

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    There's a whole lot of reasons to pay it off, peace of mind and having that mortgage payment as extra money each month (for savings, right).

    I'm for paying it off.

    At the same time, if your mortgage is like 6.5% and you KNEW how to invest it and have it grow at 12%.... but I would screw it up.

    I vote for pay the house off (and keep 3-6 months emergency fund)

    Check out daveramsey.com or call his radio show.
     
  13. wjv

    wjv Zip It Stan Lee.. . .

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    :rofl:

    I love that idea!!!
     
  14. RHVEtte

    RHVEtte

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    I might be wrong (after all, IANAA), but wouldn't that massive change in debt load on the card play havoc with your credit score?
     
  15. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    I dunno. But think of all the cool stuff you can get with the points!:supergrin:

    Pay off your house and get a free vacation!
     
  16. HarlDane

    HarlDane

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    Real Estate isn't very liquid, I'd only do it if I had no other debt, a decent cash emergency fund and a well funded retirement plan. It's nice not to have that monthly payment, but not if it means putting all your eggs in one basket.
     
  17. LongGoneDays

    LongGoneDays Misanthropical

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  18. hockeyrcks9901

    hockeyrcks9901

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    Not if you pay it off the next month. And I'm assuming that if he has enough credit limit to put the amount of a mortgage on it, then he probably doesn't care to much about applying for new credit so his score doesn't matter.
     
  19. vikingsoftpaw

    vikingsoftpaw DEPLORABLE ME!

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    Do not pay it off. The money that you will be making the payment with is worth more today than the money you will be paying with in the future. My theory sounds kind of funky, but its based on fact. The inflationary period that we experienced during the 1970's will be seen again, this time by the younger generation who will have it inflicted on them for the first time. Think Ford-Carter years.

    In short pay it back over time with the 'soft currency' inflated dollars.

    See a professional money manager, make solid investments that will pay you interest and dividends. Let your windfall work for you.
     
  20. janice6

    janice6 Silver Member

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    Check with your mortgage company to see if you have a penalty for early payoff. Some do, some don't.