Pay off mortgage or borrow off of house

[70STOVEBOLT]

Originally Posted by weq92f

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These are all simple calculations. It comes down to how secure you feel about being able to weather unexpected expenses. I like the idea of paying double or more mortgage payments (partially?) from savings in the interim to reduce the note payoff time. As mentioned, this allows for future adjustments in the face of unexpected circumstances.

However, I'm in the debt free camp. I have none and it is wonderful. My house is completely paid off and so my housing expense is tax, insurance, utilities and whatever other service I choose to enable (internet, utubeTV, netflix, etc.) plus upkeep/maintenance.

It's nice to know I can make it to 62 and free money (max SS benefit) without earning any more income. If I work, I can hold off to 67 and get even more free money.

My investments (SEP instead of 401k) continue to grow and I'll be able to dig into that when necessary all the way up to the point I'm forced to take disbursements from it.

You are in a good position. Keep that in your thoughts as you make decisions in this regard. You don't have to rock the boat at all.

Congratulations!

-Kevin

Social Security is not "free money". You paid it all the years you worked. There is no such thing as "free money" as long as the government is involved.

[weq92f]

Originally Posted by 70STOVEBOLT

Social Security is not "free money". You paid it all the years you worked. There is no such thing as "free money" as long as the government is involved.

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Yes, I understand.. I was just using that phrase as...well a bit of a jab at the gov really. I paid for sure. We all have and I'm coming around to being grateful for it. Whether I could have managed those funds for myself better than our government was able to do is the question.

-Kevin

[A1971Blazer]

something you might consider:
When you're uncertain about what to do and there is no urgent need to decide, hold off on making a choice.
Give yourself time to consider everything and feel comfortable with your decision once you make it.
Establish your plan and set your goals, and then work towards achieving them.

[62c30]

The only real negative I've found having a paid for house is when you get the property tax bill. When you have a mortgage the bank pays it and rolls it into your monthly payment so it didn't seem as bad. A loan is you borrowed money and you're paying it back, but writing the check to the county directly sucks. I call it rent, cause you don't pay it they take your house. And you think you actually own something....

[weq92f]

Originally Posted by 62c30

The only real negative I've found having a paid for house is when you get the property tax bill. When you have a mortgage the bank pays it and rolls it into your monthly payment so it didn't seem as bad. A loan is you borrowed money and you're paying it back, but writing the check to the county directly sucks. I call it rent, cause you don't pay it they take your house. And you think you actually own something....

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Agreed.

At least the consolation prize if one is relieved of his home by the government is its sale price minus the tax bill!

I walk into the government coffer filler's offices with cash to pay my tax bill nowadays. It's satisfying to me that they see the green moving across the counter. Maybe they will take notice and realize how much $$ they are scraping away from the citizenship. Fortunately, my days of paying 10k+ a year in property taxes (Texas) are over. I now live in a state with income tax (I'm basically retired) and very reasonable property tax.

-Kevin

[richard2717]

There is no better feeling than making that last mortgage payment. It takes me from a 1/3 owner to 49/51 owner with the govt. Guess we will never really own it, just paid the rent in advance.