Pay off the mortgage...or not? - Page 2

winamac1 · ‎12-29-2010

Even if one has a tax write off, one still is spending $1 and getting 30% or so back. It makes sense to pay off one's mortgage unless they consistently, in the market, are gaining. There's no guarantee one's investments will increase. It's up and down constantly. Dave Ramsey says, if one has the money, pay off one's mortgage. I do agree with him on this matter.

I don't want to spend $1 and get .30 back as far as a deduction. To me, that makes no sense.

"friends don't let friends drink white zinfandel"

Trudey · ‎03-11-2010

Thank you all for your responses. I am fine with paying off the mortgage if we continue to contribute the same amount monthly and put that extra amount into savings. DH and I don't combine our money...we have separate accounts. He gives me money each month to pay for half of the bills. I'm a saver and he is not. The money to possibly pay off the mortgage would come from my inheritance and is not ""joint"" money. I just wonder if he would be so anxious to pay off the mortgage if he was having to contribute to the lump sum?

pjoy · ‎03-10-2010

Pay it off!!! I am 43 years old and we will be paying off our mortgage next month. It is such an awesome feeling.

Colonel Meow · ‎05-25-2014

On 3/11/2015 AGV said: Thank you all for your responses. I am fine with paying off the mortgage if we continue to contribute the same amount monthly and put that extra amount into savings. DH and I don't combine our money...we have separate accounts. He gives me money each month to pay for half of the bills. I'm a saver and he is not. The money to possibly pay off the mortgage would come from my inheritance and is not "joint" money. I just wonder if he would be so anxious to pay off the mortgage if he was having to contribute to the lump sum?

I think the line I bolded is really at the heart of your question, am I right?

Boehm Collector · ‎03-09-2010

On 3/11/2015 winamac1 said:
Even if one has a tax write off, one still is spending $1 and getting 30% or so back. It makes sense to pay off one's mortgage unless they consistently, in the market, are gaining. There's no guarantee one's investments will increase. It's up and down constantly. Dave Ramsey says, if one has the money, pay off one's mortgage. I do agree with him on this matter.

I don't want to spend $1 and get .30 back as far as a deduction. To me, that makes no sense.

winamac1.... I am a real estate attorney... and agree with you 100%. This is the advise I always give my clients. People seem to be so afraid of loosing a tax deduction but fail to realize that in the long run they will keep more money in THEIR pockets if they pay off their mortgage.

kitty60 · ‎03-13-2010

I understand the separate money issue. It works for my husband and me. Originally I would say pay it off but after your saying it would come from "your" money I would only do so if you each kicked in half. Many don't understand this. The best day of our marriage was when we split the finances down the middle. His material needs were much different than mine and didn't always include my interests. So if he's willing to kick in half I would happily put in half and pay it off, other than that keep doing as you do.

Trudey · ‎03-11-2010

On 3/11/2015 Colonel Meow said:
On 3/11/2015 AGV said: Thank you all for your responses. I am fine with paying off the mortgage if we continue to contribute the same amount monthly and put that extra amount into savings. DH and I don't combine our money...we have separate accounts. He gives me money each month to pay for half of the bills. I'm a saver and he is not. The money to possibly pay off the mortgage would come from my inheritance and is not "joint" money. I just wonder if he would be so anxious to pay off the mortgage if he was having to contribute to the lump sum?

I think the line I bolded is really at the heart of your question, am I right?

You are so right. I've always wanted to pay off my mortgage and be debt free, but now that this can really happen, I worry about making the right decision. I want to think about it and discuss it and he feels that there is nothing to discuss....a "no-brainer". After reading the responses, I am feeling better about paying it off. I just tend to over think everything

winamac1 · ‎12-29-2010

On 3/11/2015 Boehm Collecter said:
On 3/11/2015 winamac1 said:
Even if one has a tax write off, one still is spending $1 and getting 30% or so back. It makes sense to pay off one's mortgage unless they consistently, in the market, are gaining. There's no guarantee one's investments will increase. It's up and down constantly. Dave Ramsey says, if one has the money, pay off one's mortgage. I do agree with him on this matter.

I don't want to spend $1 and get .30 back as far as a deduction. To me, that makes no sense.

winamac1.... I am a real estate attorney... and agree with you 100%. This is the advise I always give my clients. People seem to be so afraid of loosing a tax deduction but fail to realize that in the long run they will keep more money in THEIR pockets if they pay off their mortgage.

Thanks Boehm. You are certainly more educated on this than I am. I have never understood one's rationale of having a tax deduction. It makes NO sense to me. If one has the money, one should pay off their mortgage. I don't want to lose .70 to get .30 back. One never knows how much one can consistently make in the market. It's also a great peace of mind to not have a mortgage and give me some freedom. Smile

We paid off our mortgage 5 or 6 years ago, and I'm so glad we did. I hate paying the taxes we do, but I'd rather have more money saved in the long run.

"friends don't let friends drink white zinfandel"

Zita · ‎05-24-2011

When we downsized to a townhouse several years ago, we paid for it outright. It's wonderful not to have to worry about a mortgage payment. As we age one never knows what health issues may emerge or other issues. Don't miss the interest deduction at all.

I'd say, do it!

mzlg · ‎04-28-2011

On 3/11/2015 AGV said: Thank you all for your responses. I am fine with paying off the mortgage if we continue to contribute the same amount monthly and put that extra amount into savings. DH and I don't combine our money...we have separate accounts. He gives me money each month to pay for half of the bills. I'm a saver and he is not. The money to possibly pay off the mortgage would come from my inheritance and is not "joint" money. I just wonder if he would be so anxious to pay off the mortgage if he was having to contribute to the lump sum?

AVG, This information should have been included in your post, as it may have affected the suggestions others have given. I would check with who ever does your finances, as this additional information, somewhat, changes the situation.