[rustyp]

Originally Posted by billethkid

It may also depend on an investment and or tax strategy.
With a 3-4% mortgage interest rate one can have the same money invested and get a higher return and a tax break.

I keep hearing this strategy over and over. Please explain. Doesn't the bank require life insurance on a mortgage ? What would that be for 70 year old with a thirty year mortgage per thousand ? Guess that's why it's called a "mort"gage. Also does not one have to pay points and closing costs plus whatever other gimmicks (variable rates, early payoff penalties, etc.) they have come up with nowadays on a mortgage. So what are the real break even numbers ? Now put on top of that your level of comfort. I'm personally not willing to make an investment that nets 5K-10K over 30 years. Sleep is worth a lot more than that.

[Chatbrat]

Never had a mortgage- never paid one cent of interest- remember interest keeps poor people poor while it makes rich people richer==if you have to borrow for something--you don't need it

[billethkid]

Originally Posted by rustyp

I keep hearing this strategy over and over. Please explain. Doesn't the bank require life insurance on a mortgage ? What would that be for 70 year old with a thirty year mortgage per thousand ? Guess that's why it's called a "mort"gage. Also does not one have to pay points and closing costs plus whatever other gimmicks (variable rates, early payoff penalties, etc.) they have come up with nowadays on a mortgage. So what are the real break even numbers ? Now put on top of that your level of comfort. I'm personally not willing to make an investment that nets 5K-10K over 30 years. Sleep is worth a lot more than that.

I don't know anybody that would.

If one has the equity in the property and the annual income that the bank requires for the principal, age is not a factor.

No life insurance required.....the equity is the banks insurance/assurance.

[tuccillo]

Mortgages provide financial leverage and can be of value. Also, the tax structure can be beneficial for holding a mortgage. Your binary conclusion doesn't apply to a great many situations. It is not nearly as simple as you present. People need to evaluate their own situation. Advice presented without consideration of the details is worthless. Unfortunately, a significant amount of "advice" on ToTV falls into this category.

Originally Posted by Chatbrat

Never had a mortgage- never paid one cent of interest- remember interest keeps poor people poor while it makes rich people richer==if you have to borrow for something--you don't need it

[Ecuadog]

Originally Posted by tuccillo

... Advice presented without consideration of the details is worthless. Unfortunately, a significant amount of "advice" on ToTV falls into this category.

Free advice is usually worth what you paid for it.

[rustyp]

Originally Posted by billethkid

I don't know anybody that would.

If one has the equity in the property and the annual income that the bank requires for the principal, age is not a factor.

No life insurance required.....the equity is the banks insurance/assurance.

Interesting. I did not know this. What is the percentage of equity and income requirements in general for a bank to not require life insurance ? Most people in TV I suspect have Citizen's as an example. The rest of my question still applies - what are the unforeseen costs of a mortgage typically ? However being the real skeptic that I can not seem to loose ever my gut tells me most people in TV with a mortgage simple did not have the money - but would never admit it.

[missypie]

Originally Posted by Chatbrat

Never had a mortgage- never paid one cent of interest- remember interest keeps poor people poor while it makes rich people richer==if you have to borrow for something--you don't need it

Although I personally agree with you, but our children and grandkids don't necessarily have the option nowadays. On the other hand, they can still make very wise decisions money wise that they have learned from us.

[asianthree]

OPM.. Other People's Money. (The banks money). Our interest rate is 2.25% for mortgage. We definitely make more on our investments than that.

[OpusX1]

Haven't had a mortgage since 1991. It's great.

[dewilson58]

Originally Posted by Chatbrat

Never had a mortgage- never paid one cent of interest- remember interest keeps poor people poor while it makes rich people richer==if you have to borrow for something--you don't need it

Or, leverage can make you rich.

[Wiotte]

Originally Posted by Chatbrat

If you take your assets and divide them by the years you think you're going to live and you get to zero --you might be a winner



A prime example --age 70 $6 million --in assets if you think your not going to make it to 90, you can knock you socks off spending $300K a year without earning any income--remember the basic rule man makes plans God laughs



IMHO- enjoy it while you can

Must be nice [emoji15]


Sent from my iPhone using Tapatalk

[Villagevip]

I payed cash, b/c I could...Don't like all the financial mumbo gumbo, placing large selling commissions into the hands of the advisors...There is no such thing, as a fiducial responsibility anymore...

[Wiotte]

It's nice to have homestead and no mortgage, piece of mind is priceless.


Sent from my iPhone using Tapatalk

[manaboutown]

It just depends. As long as the interest is deductible in some way and one can make more on one's investments mortgages make sense at today's artificially low rates. Historically I preferred as close to 100% financing as I could get or no loan whatsoever.

[justjim]

Originally Posted by rustyp

Interesting. I did not know this. What is the percentage of equity and income requirements in general for a bank to not require life insurance ? Most people in TV I suspect have Citizen's as an example. The rest of my question still applies - what are the unforeseen costs of a mortgage typically ? However being the real skeptic that I can not seem to loose ever my gut tells me most people in TV with a mortgage simple did not have the money - but would never admit it.

Generally 20% down on a mortgage and you don't need the insurance. In some cases, it can be less. The decision to take a low interest loan and invest is a personal decision and an excellent strategy to build money for retirement. However, as you age, many decide to pay cash and "tidy up their debts" for peace of mind and to take time to enjoy what time they have left.