Pay off the mortgage...or not? - Page 4

ccassaday · ‎10-21-2010

Since the money is coming from an inheritance I say pay it off.

Trudey · ‎03-11-2010

On 3/11/2015 wonderfulworld said:
Ah, if paying it off would come from 'your side' so to speak I would say no. As a woman I think you might consider keeping your inheritance for your medical needs in your frail years or purchase Long Term Health Care Insurance.

That was the advice my mother gave me and I took it. She had purchased it for her self and used it to live in a lovely Assisted Living Facility for the last 5 years of her life. A wonderful 'gift' to herself and to us. I have my own policy now and so does DH.

We both have Long Term Care policies. After my mom went into assisted living and I saw how quickly her money was being spent, I knew that we had to have LTC insurance. Even if we never need to use it, I feel so much better having it.

BabyYoda · ‎03-09-2010

AGV please don't use your inheritance to pay off your mortgage. Keep it in a separate account. Anything can happen and since you both split the bills it would not be right that you would use this money to pay off the house. Let's say your husband received an inheritance and chose not to pay off the house with it? It is your rightful inheritance. A friend of mine used her entire inheritance to buy a house. She put her husband on the deed. 10 years later they divorced. He got half of what it sold for. No prenup.

little boobala · ‎03-11-2010

We are 64 and 65. Our mortgage on 2 farms has been paid off for years. To us there is nothing worse than having that bill. Especially since my husband has had to pay for his own health ins. for the last couple of yrs. He just turned 64. You never know what will happen. I thought I would carry health ins. till we reached at least 66. Not so.

winamac1 · ‎12-29-2010

On 3/11/2015 ccassaday said: Where will the money com from to pay it off. We are having this convo now. My parents house is paid off. But we are going to be building a new house after my dad retires. We do not know whether to take the extra out of his 401k or get a mortgage. We our leaning on getting a mortgage because paying the interest rate will be much lower then the income tax paid on the 401k. We will be talking with an advisor before making a decision.

I would not take money out of my 401K to pay off a mortgage. I'd pay off my mortgage if I had the money that is easily accessible and money you truly don't need to pay living expenses.

"friends don't let friends drink white zinfandel"

Trudey · ‎03-11-2010

On 3/11/2015 winamac1 said:
On 3/11/2015 ccassaday said: Where will the money com from to pay it off. We are having this convo now. My parents house is paid off. But we are going to be building a new house after my dad retires. We do not know whether to take the extra out of his 401k or get a mortgage. We our leaning on getting a mortgage because paying the interest rate will be much lower then the income tax paid on the 401k. We will be talking with an advisor before making a decision.

I would not take money out of my 401K to pay off a mortgage. I'd pay off my mortgage if I had the money that is easily accessible and money you truly don't need to pay living expenses.

I agree. Don't touch your 401k if you don't absolutely have to.

Snicks1 · ‎07-28-2012

I would say definitely pay it off...anytime you don't have a mortgage is a good thing, especially in your retirement years. I would, however, suggest that you make a stipulation that, should you, for any unseen reason, in the future, sell your home, that the amount that YOU paid off, will come off the top and go back to you, directly. You never know what will or could happen in the future and you need to protect yourself.

The reason, for me, in doing this: my husband and I were in our forties when we got married, 2nd marriage for both of us, both owned homes. We sold our homes, and bought one together....my home sold first, so while we were living in his home and getting it ready to sell, we were also looking at homes to buy. When we found the home we wanted, I made the down payment and major appliances. Hubby's home sold before we moved into our new house, and he paid for the rest of the new furnishings. Due to a change in my employment, we did sell about 7 years later and move to another town, so we paid the new down payment and I got my original down payment back in my account, as we did make a good profit. We have always split the bills down the middle and have separate banking accounts. It works for us.

"To each their own, in all things".

nomless · ‎03-10-2010

I suggest you ask an accountant to run the numbers and see which option works to your advantage financially.

curlywhitedog · ‎03-09-2010

Paying off your mortgage is not a one size fits all decision...so many factors come into play. How many years are left? Are you still getting the true benefit of a mortgage interest deduction or have you entered those later years when most of the interest has already been paid? Hubby and I paid off our mortgage more than 10 years ago, a full 10 years prior to when we thought he might retire. We lost the interest deduction, albeit a very small one at that time, that's true, but more importantly, we lost the debt as well.

We both had/have a low tolerance for debt and while we understand it's a fact of life for some, it was not for us. We wanted the piece of mind and the pleasure of a truly good night's sleep that, for us, only came with being debt free.

Before making any decisions it might be worth while to speak with a financial adviser, look at the pros and cons, evaluate your tolerance for debt and make your decision accordingly. Good luck.

Maria

ccassaday · ‎10-21-2010

On 3/11/2015 AGV said:
On 3/11/2015 winamac1 said:
On 3/11/2015 ccassaday said: Where will the money com from to pay it off. We are having this convo now. My parents house is paid off. But we are going to be building a new house after my dad retires. We do not know whether to take the extra out of his 401k or get a mortgage. We our leaning on getting a mortgage because paying the interest rate will be much lower then the income tax paid on the 401k. We will be talking with an advisor before making a decision.

I would not take money out of my 401K to pay off a mortgage. I'd pay off my mortgage if I had the money that is easily accessible and money you truly don't need to pay living expenses.

I agree. Don't touch your 401k if you don't absolutely have to.

Our situation is a little different in that my dad will be getting a good monthly pension. We won't need the 401k for living expenses. Plus we would still have tons in the 401k even after paying for a house. Our consideration will be a total tax issue. Will it be cheaper to pay the income tax or the interest on a mortgage over a period of years.