Do Villagers make Mortgage Payments

[Taj44]

I'm just curious - do Villagers tend to own their own homes outright, or do they make mortgage payments? We paid off our house, not wanting to deal with a mortgage payment, but my spouse thinks a number of the newer Villagers in particular, have mortgage payments.

[getdul981]

I think it would be awfully nice to not have a mortgage payment, but I'm afraid when we finally do get our house sold and get moved to TV, we're gonna have one. I'm hoping it won't be any where near what we have now, bt we will more than likely have one.

[dfn8tly]

You know it's funny how the banks feel about this. If you don't make your mortgage payment they get kind of upset and start something called foreclosure which is like relocation to the bridge over Lake Sumter.

[Taj44]

Funny. I guess I just assumed that retirees would be mortgage-free, but now we're wondering otherwise.

[OpusX1]

Some do some don't. We don't.

[billethkid]

while it may bring comfort and peace of mind, there are tax advantages for certain income levels.
The advantage of course is multiple if one has a low interest mortgage like 5% for example. You get the write off as well as investing funds that would other wise have been used to pay off the mortgage. Most, investors I know, my age, carry a mortgage. The financial advantages far out weigh the bragging rights and comfort (a relative concept) of not having one.

The right strategy of course is the one that makes you happy and feel good about what you have done.

btk

[logdog]

I think I remember reading in the last Villages annual survey results that about half pay cash for their homes versus having a mortgage.

[SteveFromNY]

The right strategy of course is the one that makes you happy and feel good about what you have done.

btk

Perfectly said!

[swrinfla]

Yes, I pay a mortgage. Partly because I have done so almost forever and had no clue why anyone wouldn't being paying one!

While it would, of course, be very. very nice not to fork over the mortgage payment every month, it does give me some comfort that I can take a deduction for the interest paid.

When I pass on, my kds will have to decide what to do with my place - I assume they will sell it, and benefit therefrom, but they will also know that I've been careful with their "investment!"

My brother has had a gazillion homes and has never had a mortgage. He's still solvent, but notoriously "tight" so I don't why! :jester:

SWR
:beer3:

[zcaveman]

The financial advantages far out weigh the bragging rights and comfort (a relative concept) of not having one.

I think that is a personal opinion.

I do not brag. I do not have a mortgage. I am financially happy.

[784caroline]

When you are young and prosperous and "TIME" is on your side, having a mortgage is fine. To have a mortgage simply because there are tax advantages, at whatever tax bracket you are in, is crazy. For example if you are in the 33% tax bracket and you pay $1000 in mortgage interest...you do recoup approx $330 from uncle sam..BUT YOU STILL PAID $670 for every $1000 in mortgage interest . HOw is that a bargain!! Billiethekid said to invest the money you woul use to pay down the mortgage..well again when times were prosperous and one could tax the ups and downs of the market that may have been a fine strategy just as the advice was 10-20 years ago to take as large a mortgage as possible. In todays world, NO thank you...I play the market but not with money for the house .......peace of mind..best return you can have!

[Taj44]

When you are young and prosperous and "TIME" is on your side, having a mortgage is fine. To have a mortgage simply because there are tax advantages, at whatever tax bracket you are in, is crazy. For example if you are in the 33% tax bracket and you pay $1000 in mortgage interest...you do recoup approx $330 from uncle sam..BUT YOU STILL PAID $670 for every $1000 in mortgage interest . HOw is that a bargain!! Billiethekid said to invest the money you woul use to pay down the mortgage..well again when times were prosperous and one could tax the ups and downs of the market that may have been a fine strategy just as the advice was 10-20 years ago to take as large a mortgage as possible. In todays world, NO thank you...I play the market but not with money for the house .......peace of mind..best return you can have!

My thoughts exactly. Mortgage prepayment makes a lot of sense these days considering extremely low fixed income returns, an incredibly volatile stock market and unstable home values. It makes even paying down 5% mortgages seem like a reasonable idea.

[GuyWin]

There's one BIG reason we don't ever want to have another mortgage: You end up paying double the amount mortgaged at the end of the 30 year mortgage at 5.31%. So if your mortgage is $200,000 you will pay $400,000.

[getdul981]

I don't understand why anyone would have a mortgage if they don't need to. The deduction is nice and any deduction is always welcomed. However, the duduction is not like it's a tax credit or anything like that. It's only the INTEREST that you don't have to pay taxes on. Of course it's better than interest on a car loan which is not deductible, but it's still money you've spent and don't have anymore. If you pay $1000 in interest, you're only saving $280 in taxes if you're in the high bracket. Any way you figure it, it's better to have that extra $720 in your pocket. That's just my opinion and it's worth exactly what you paid.

[Taj44]

There's one BIG reason we don't ever want to have another mortgage: You end up paying double the amount mortgaged at the end of the 30 year mortgage at 5.31%. So if your mortgage is $200,000 you will pay $400,000.

I agree - could just not fathom giving that much money to the bank if there was a way around it. However some people can't afford their house otherwise.

[SALYBOW]

We will have a mortgage. After putting our children through private schools we need to have a mortgage. We will be getting an interest rate below 5% so it will not be too bad. We will also get the tax write off from our home there and our condo here. Taxwise they say it will be better. If it gets to be a problem we will have to turn the tables and "borrow from the kids." LOL
After all, it was our money that allowed them to become a Doctor, a psychiatric social worker, and a women EXec. :a20: Sounds good in theory I think. :1rotfl:

[Kelsie52]

For those who do have mortgages --Which bank offere the best service ?

I applied on line for a pre-approval in case we get carried away during our vist this coming weekend and was not happy with the offers I recived ..

Any suggestions would be helpful

Thanks:shrug:

Rich/Liz

[ajbrown]

We have a mortgage on our home here in TV. It was our choice to carry a mortgage. IMO, if you have a choice to pay cash or carry a mortgage it becomes a personal decision, based much on your aversion to risk financially.

Our rate is very high at 5.75% (never thought I would say 5.75% was high in my lifetime :)). If my rate was 7-8+, my attitude on carrying a mortgage would change, but....

I do not agree with the posters that say giving the bank $200,000 in interest for a $200,000 loan is crazy. I do not consider it giving them money. I am paying them 5.75% so I can use their money. I have choices with the money it is not tied up in the home. I want to stress, I am not saying this is the right thing for all; just that it is the right thing for my wife and I.

I believe over 30 years the $200000 borrowed at 5.35% or even my high rate of 5.75% will pay the mortgage on its own and have some left over. Since 2007 I have been wrong, but check back in 10 years.

Just my opinion obviously, but that is why we are ok carrying a mortgage.

Kelsie52: I have had several mortgages over the years and IMO service is not as critical as interest rate and closing costs......

[mike barkley]

mortgage is 3.75%........laddered bonds paying 6%
easy decision for me!

[Kelsie52]

AJ --I agree with you on both accounts ---payments and service ..

My question more or less was about willingness to work with the borrower ..

I am in a situtation I would guess like some others --where I am trying to buy and sell at the same time ---If I would sell --I wouldnt need to mortgage but that decision is still to be made ...but if I were to buy first I would need to mortgage !!!!

I have contacted one bank here in TV and they were unwilling to meet my needs with the amount of mortgage I was looking for ....(even though I can carry both for a fixed time)...not forever ---

Was just wondering if anyone had a similar experience :undecided:

Thanks

[Soon2B]

We had paid off our mortgage (in non TV land) some time ago and thought owning our place outright would be a plus. It turns out that credit reporting agencies (the four major ones I checked with) lowered our credit rating because WE DIDN'T HAVE A MORTGAGE. Had we shown evidence of having one our score would have been higher.

No wonder our economy is troubled. But not to worry. Thanks to all you Village People who raved on and on about TV, we now have a really big fat mortgage. Can't wait to see our newly improved credit score.

I told our kids now they'll have to be adopted by the Morse family to get their inheritance.

[Rob Stevens]

I've seen a couple of posts about taking the interest deduction. In general it isn't a good idea to pay a dollar in mortgage interest in order to save thirty cents in taxes. However if the interest allows you to have enough deductions to file a Schedule A and claim other items maybe it works out. Then again if you have a lot of other deductions, you may not need to pay the interest in order to file a Schedule A.

[dpingram]

Not everyone moving to TV have had the same life experiences. We have only been married 4 years and starting over. Although we hope to make a nice profit on the home we have we will still need to have a mortgage. Just keeping our fingers crossed that we will be able to sell our home before next spring. (the time limit expirations for building)