[Challenger]

Originally Posted by BS Beef

Hope this isn't too far off topic. Curious if anyone kept a mortgage for the tax advantage.

Tax advantage? is your tax bracket over 100%?

[billethkid]

There is no right or wrong and peace of mind is a relative state, per individual.

[batman911]

With the recent past performance of the stock market, i would not recommend investing the cash instead of paying off the mortgage. You could loose the ability to pay off your mortgage if the market crashes again as it did in 2008. Investing the money would be good only if you can still afford the mortgage payment without the investment income. Very risky to play with the house money at this stage of our lives. Remember, past performance is no guarantee of future performance. I would keep the mortgage if I were 25 years younger.

[dewilson58]

Originally Posted by TV Tom

I know a lot of you will disagree, but I favor a mortgage under the current situation where borrowing money is cheap. If you are making more on your investments than the cost of money, which you should e i today's market, you lose by paying cash.

I agree!!!...............take any five year period over the last thirty years and the stock market return have been more than twice the cost of mortgage money.

[Challenger]

Originally Posted by dewilson58

I agree!!!...............take any five year period over the last thirty years and the stock market return have been more than twice the cost of mortgage money.

Any 5 yr period ? Hmmmmmmmm

[dewilson58]

Originally Posted by challenger

any 5 yr period ? Hmmmmmmmm

:d :d :d

[BS Beef]

Originally Posted by Challenger

Tax advantage? is your tax bracket over 100%?

Maybe I should have said for the mortgage interest payment tax write off advantage. And to answer your question, no my tax bracket is a smidge under 100%

[manaboutown]

Mortgage interest on one's personal residence or a second home is normally only deductible as an itemized deduction and is therefore deductible to whatever degree with various limitations such as a million dollar loan limit on a purchase mortgage and $100K on a home equity loan. The Pease limitation, AMT and other issues such as whether or not one receives income on tax exempt municipal bonds may enter the picture. One might wish to consult their CPA or tax attorney to determine whether such conditions may apply.

[Challenger]

Originally Posted by BS Beef

Maybe I should have said for the mortgage interest payment tax write off advantage. And to answer your question, no my tax bracket is a smidge under 100%

If you pay $100 in interest and are in a 30% tax bracket , it seems to me that you are still out of pocket $70. If you have cash and are earning at less than the mortgage rate , your net income would be higher by paying down the mortgage unless you are in a 100% bracket. Or, unless you are able on a consistant, long term, no risk basis to exceed the mortgage rate on investments.

Is my logic flawed?