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MommyTeffi
Yummy!!!
Member since 2/06 1827 total posts
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Anyone not have a mortgage on their current home?
We purchased our current home for a cash due to the sale of our previous residence. Just curious how you make out come tax time. This will be our first year without mortgage interest to deduct so I'm preparing for the worst. I'm sure our accountant will be happy to see.
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Posted 3/3/08 1:49 PM  |
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mommy2Two
LIF Infant
Member since 3/07 218 total posts
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Re: Anyone not have a mortgage on their current home?
Posted by MommyTeffi
We purchased our current home for a cash due to the sale of our previous residence. Just curious how you make out come tax time. This will be our first year without mortgage interest to deduct so I'm preparing for the worst. I'm sure our accountant will be happy to see.
okay i am NOT in this situation but...I"M SO JEALOUS! no mortgage WOW!
may i ask do you live in li? and if you do how does your old house sale equal no mortgage on next one? new area? smaller home?
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| Posted 3/3/08 2:49 PM |
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lovemy2boys
LIF Adult
Member since 10/07 3915 total posts
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Re: Anyone not have a mortgage on their current home?
I don't have this situation, but you still get to write off property taxes! not having a mortgage is pretty much the best position you can be in, I don't think you have to worry about tax time.
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| Posted 3/3/08 3:32 PM |
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JRG71
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Member since 5/05 5025 total posts
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Re: Anyone not have a mortgage on their current home?
We bought our IL's house that was paid off. Before we actually bought it we only paid the property taxes every year. We got KILLED at tax time.
We actually bought the house before we had too, just so that we could have something to write off.
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| Posted 3/3/08 3:32 PM |
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MommyTeffi
Yummy!!!
Member since 2/06 1827 total posts
Name:
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Re: Anyone not have a mortgage on their current home?
Posted by mommy2Two
Posted by MommyTeffi
We purchased our current home for a cash due to the sale of our previous residence. Just curious how you make out come tax time. This will be our first year without mortgage interest to deduct so I'm preparing for the worst. I'm sure our accountant will be happy to see.
okay i am NOT in this situation but...I"M SO JEALOUS! no mortgage WOW!
may i ask do you live in li? and if you do how does your old house sale equal no mortgage on next one? new area? smaller home?
We sold our home in Queens and moved to CT. We had thought about moving to LI but feel in love with CT. I'm a SAHM and wanted to continue to be with my kids which was another reason why LI was out. Our house in Queens was worth a-lot of money due to soaring property values and the fact that it was a legal 2 family. The home we purchase in CT was about 3/4 of the sale price of our old home.
We were able to purchase a much bigger home in CT and still have money in the bank. I'm very happy with my situation and feel very grateful.
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| Posted 3/3/08 3:51 PM |
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skew
LIF Adult
Member since 5/05 6794 total posts
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Re: Anyone not have a mortgage on their current home?
contemplating paying off the mortgage but hesitant to do so due not being able to deduct.
when researching mortgages, i read that it is more sound(financially beneficial), to hold a mortgage (i have interest only), invest additional money (what would be principal) at an equal or higher rate, and deduct interest.
since homes tend to appreciate (well, maybe not right now), there is no point in paying off the mortgage and owning the home outright. this is viewed as "dead money" which would otherwise be used to earn additional money (investments).
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| Posted 3/3/08 6:17 PM |
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MommyTeffi
Yummy!!!
Member since 2/06 1827 total posts
Name:
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Re: Anyone not have a mortgage on their current home?
Posted by skew
contemplating paying off the mortgage but hesitant to do so due not being able to deduct.
when researching mortgages, i read that it is more sound(financially beneficial), to hold a mortgage (i have interest only), invest additional money (what would be principal) at an equal or higher rate, and deduct interest.
since homes tend to appreciate (well, maybe not right now), there is no point in paying off the mortgage and owning the home outright. this is viewed as "dead money" which would otherwise be used to earn additional money (investments).
We went back and forth about taking out a loan even though we didn't need it. In the end, we just couldn't see paying the bank every month for something we could own outright especially with the way the stock market is right now. The loan would have been for a small amount anyway which probably would not have given us much to deduct. We had enough money ( six figures) left over after the purchase to invest. I feel confident about our decision and happy to own my home outright at the age of 30.
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| Posted 3/3/08 7:22 PM |
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skew
LIF Adult
Member since 5/05 6794 total posts
Name:
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Re: Anyone not have a mortgage on their current home?
Posted by MommyTeffi
Posted by skew
contemplating paying off the mortgage but hesitant to do so due not being able to deduct.
when researching mortgages, i read that it is more sound(financially beneficial), to hold a mortgage (i have interest only), invest additional money (what would be principal) at an equal or higher rate, and deduct interest.
since homes tend to appreciate (well, maybe not right now), there is no point in paying off the mortgage and owning the home outright. this is viewed as "dead money" which would otherwise be used to earn additional money (investments).
We went back and forth about taking out a loan even though we didn't need it. In the end, we just couldn't see paying the bank every month for something we could own outright especially with the way the stock market is right now. The loan would have been for a small amount anyway which probably would not have given us much to deduct. We had enough money ( six figures) left over after the purchase to invest. I feel confident about our decision and happy to own my home outright at the age of 30.
you should absolutely be elated to not have a mortgage and to be proud homeowners.
my reply was more along the lines of me explaining (typing) my thought process "aloud". not at all meant to imply that you made an unwise decision.
kudos to you!
 
Message edited 3/3/2008 7:34:22 PM.
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| Posted 3/3/08 7:33 PM |
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MommyTeffi
Yummy!!!
Member since 2/06 1827 total posts
Name:
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Re: Anyone not have a mortgage on their current home?
Thank you. I appreciate insight.
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| Posted 3/3/08 7:42 PM |
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