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BigB
C & J are 10!
Member since 6/05 5914 total posts
Name:
Stacey
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Money Question
If you could, would you:
1. Buy a house out right with no mortgage?
or
2. Carry a mortgage and invest the rest?
And why?
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Posted 6/22/08 12:53 AM  |
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My4GirlsMyLife
My 4 girlies
Member since 2/08 9702 total posts
Name:
Valerie
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Re: Money Question
I dont know much about mortgages but could you put a large sum down and make the payments smaller? or it doesnt work like that? Its always good to have money on the side just in case anything
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| Posted 6/22/08 1:05 AM |
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jax1023
LIF Adult
Member since 3/07 1165 total posts
Name:
Jackie
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Re: Money Question
It depends on how much money you would have left after buying the house and how long you planned to be in the house.
If this is the rest of your life house and you would have enough left over for repairs, etc. I would say pay outright.
If this is a short term house and you would be left without a safety net, take a mortgage and invest the rest.
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| Posted 6/22/08 1:31 AM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Money Question
No mortgage is the no brainer answer.
There is no safe investment out there currently that will put out a better return than any current mortgage rates.
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| Posted 6/22/08 1:34 AM |
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MissJones
I need a nap!
Member since 5/05 22136 total posts
Name:
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Re: Money Question
Honestly, I'd put a HUGE downpayment on it and carry a tiny mortgage if and only if the interest being a tax deduction worked in my favor. If not, then outright. But again, only if this house was going to be my house for the rest of my life. Not a rental.
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| Posted 6/22/08 8:40 AM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Money Question
no mortgage.
take the $$ you would have been paying for the small mtge and invest that.
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| Posted 6/22/08 8:43 AM |
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charon54
My two boys!
Member since 5/05 7279 total posts
Name:
Rebecca
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Re: Money Question
DH helped me with this one. He said pay cash. On a $400,000 loan with 6% interest and a 30 year mortgage you will pay $463,000 in interest! That's almost twice the house. He suggested figuring out how much interest you would have paid and then invest that each month.
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| Posted 6/22/08 9:16 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Money Question
Posted by ave1024
No mortgage is the no brainer answer.
There is no safe investment out there currently that will put out a better return than any current mortgage rates.
agreed-
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| Posted 6/22/08 9:18 AM |
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HeatherRose
Life is Good :)
Member since 11/07 6605 total posts
Name:
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Re: Money Question
no mortgage, I'm a bad saver in general, but I def. would invest and save the $. And its just one less dreaded monthly payment
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| Posted 6/22/08 10:38 AM |
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saraH
happy birthday sweet kate!
Member since 5/05 16555 total posts
Name:
I know that God exsists, I held her in my arms...
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Re: Money Question
If it were up to me and we suddenly came across 80 gillion dollars, I'd pay off the house.
But I know DH would want to pay down some of the house, and carry a small mortgage, for the equity.
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| Posted 6/22/08 10:57 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Money Question
the way the market is right now, not sure I would plunk down a huge amount to invest.
I vote for no mortgage. that's a safer investment IMO. plus it would save 100's of thousands in interest
Message edited 6/22/2008 11:07:43 AM.
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| Posted 6/22/08 11:06 AM |
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SweetestOfPeas
J'taime Paris!
Member since 3/06 32345 total posts
Name:
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Re: Money Question
here are some numbers...
if a house is $500K and you put down 10%, with 6% interest and a 30 yr mortgage, over the life of the loan you will pay $971,269 for that house or $521,269 in interest 
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| Posted 6/22/08 11:10 AM |
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BigB
C & J are 10!
Member since 6/05 5914 total posts
Name:
Stacey
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Re: Money Question
Posted by charon54
DH helped me with this one. He said pay cash. On a $400,000 loan with 6% interest and a 30 year mortgage you will pay $463,000 in interest! That's almost twice the house. He suggested figuring out how much interest you would have paid and then invest that each month.
This is what I was thinking...I think we will carry a small mortgage for the write off and the equity.......DH and I don't agree on this at all!
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| Posted 6/22/08 12:06 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Money Question
Posted by BigB
.
This is what I was thinking...I think we will carry a small mortgage for the write off and the equity.......DH and I don't agree on this at all!
there really is not much of a benefit to having a mortgage for a write off
have an accountant run the numbers for you- and you will see that it's better to have no mortgage
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| Posted 6/22/08 12:26 PM |
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PotofLuck06
Our Baby Boy Is Here!!!
Member since 11/06 13241 total posts
Name:
Betsy
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Re: Money Question
No mortgage in a heartbeat. You can invest $$ in other ways. My ILs paid off their mortgage about 10-15 years ago and they have so many money accounts it's crazy!
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| Posted 6/22/08 12:28 PM |
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MrsPJB2007
MBA at your service!
Member since 7/06 12020 total posts
Name:
MJ
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Re: Money Question
the way the economy is---no mortgage! this seems like a no brainer all around. with the money you would have been paying your monthly mortgage....you could use that to save and invest if you want.
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| Posted 6/22/08 3:52 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Money Question
Posted by ave1024
No mortgage is the no brainer answer.
There is no safe investment out there currently that will put out a better return than any current mortgage rates.
ITA! If you stay in the house for any prolonged period of time, you save tens to hundreds of thousands..no brainer. Also, if you run into tight times, you have no mortgage payment to worry about and your home can't be taken away from you.
And, you could always tap into it if you had a financial emergency. All good.
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| Posted 6/22/08 4:33 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Money Question
Posted by BigB
Posted by charon54
DH helped me with this one. He said pay cash. On a $400,000 loan with 6% interest and a 30 year mortgage you will pay $463,000 in interest! That's almost twice the house. He suggested figuring out how much interest you would have paid and then invest that each month.
This is what I was thinking...I think we will carry a small mortgage for the write off and the equity.......DH and I don't agree on this at all!
If you don't pay the mortgage down and invest the money, any tax break you get with having a mortgage is negated by the EXTRA taxes you would pay on investment dividends.
Again, it's really a no-brainer move to just pay the morgage down.
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| Posted 6/22/08 5:06 PM |
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2girlsforme
LIF Adult
Member since 8/06 3071 total posts
Name:
XXXXXXXXX
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Re: Money Question
I agree the house all the way. In addition, the interest deduction on the mortgage is minimal, if you're subject to AMT.
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| Posted 6/22/08 10:46 PM |
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CaseyGirl
Mommy to 3 Boys :)
Member since 5/05 19978 total posts
Name:
Jen - counting my blessings...
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Re: Money Question
No mortgage....everytime I write the check for my mortgage payment a little piece of me dies 
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| Posted 6/22/08 10:57 PM |
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CathyB
Member since 5/05 19403 total posts
Name:
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Re: Money Question
We'd keep the mortgage and invest the money in one of DH's firm's funds. Last year it was up just over 30%, and they are on track this year to be even stronger.
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| Posted 6/23/08 7:50 AM |
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JRG71
*****************
Member since 5/05 5025 total posts
Name:
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Re: Money Question
Posted by ave1024
No mortgage is the no brainer answer.
There is no safe investment out there currently that will put out a better return than any current mortgage rates.
Agree 110%
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| Posted 6/23/08 8:19 AM |
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Kissy331
My two miracles!
Member since 5/06 17826 total posts
Name:
Kristen
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Re: Money Question
Without a doubt, No Mortgage....Having that monthly payment back in my pocket would be great. This is not a time to invest in anything....
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| Posted 6/23/08 8:23 AM |
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browneyedgirl
family is all that matters
Member since 6/06 6513 total posts
Name:
browneyes
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Re: Money Question
no brainer--pay off the mortgage in full
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| Posted 6/23/08 9:02 AM |
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