 If you have 12 million dollar can you retire luxuriously? |
For example a 2 million dollar home.
2-3 great vacations per year, 200,000 $ worth of cars (changed every 4 years), nice fashion, good meals, etc. (200,000-300,000 $ spent annually)
Can ... |
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Borrow it from a friend, or take out a loan.
Obviously no interest ... |
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| Or do you like to spend, spend, spend?... |
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When I go to restaurant, or buy things in a supermarket, or whenever I spend my money, is it cheaper to use my Debit card than my credit card?
for example, would the meal cost more ... |
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Should I sacrifice taking a $10 round-trip by cab & paying $5 to wash & dry my clothes, & then be ENTIRELY broke for the rest of the month?
What would you do in this ... |
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 How can I get 40 thousand dollars? ? |
I would like to buy a house that is worth 100 thousand dollars and I already have 60 thousand. However, I still need 40 thousand and I have bad credit.
I really love the house and would ... |
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 Do you rent or own a place? |
Do you rent or own your place?
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 Rather personal... Monthly take home? |
How much do you take home a month. I clear £1645.00 a month.
Is that a good wage for a 24 year old? (Ive been told its not)
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Thank you.
A... |
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| I desperately need a loan for about £9000, ideally i would like to be abe to pay off over 5 years at £200 per month, but can't go to a normal loan company...am thinking loan sharks are going ... |
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 Is this trusty? |
If you were a parent would you let your child use this?
For ages 13 and 15
www.GreenDotPrepaidCards.com
Additional Details
Anyone ever get their kid one? Or any ... |
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lilly101200 | If you could pay off your house mortgage today, would you do it? If you wouldn't pay it off, why not? |
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 |
 
mark
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Anyone that tells you not to pay off your mortgage because you'll lose the tax deduction is a fool and could not be giving you worse advice even if they tried.
Let's walk through this simple scenario with some hypothetical numbers (just to make the math easier). Let's say you make $60,000/year (pre-tax) and have a mortgage debt of $100,000 at 5% effective annual interest rate. This year you would pay roughly $5,000 in interest. This means you would receive a tax deduction of $5,000 which would drop your taxable income from $60,000 to $55,000 for the year. With that income, you would be in a 25% tax bracket. Income taxes on $55,000 would cost you $13,750, while income taxes on $60,000 (without taking the deduction) would be $15,000. The savings difference is $1,250.
To summarize for the above scenario, you would have paid a mortgage lender $5,000 in mortgage interest in order to save yourself from paying the government $1,250 in taxes.
If you have the ability to pay off your mortgage, you should do so because it's the most financially sound decision for you to make for yourself. The myth that you need to have a mortgage in order to take advantage of the tax deduction is an idea perpetuated by the mortgage industry. The reason they would say that is simple; they want your $5,000.
Good luck. |
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rooster_nugget
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yes without a doubt i would. but i dont have one :( |
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CPA/PFS
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I have a large home and no mortgage. Think of it this way. If you could invest in a safe, low risk asset and earn a guaranteed rate of say ... 7% or 8% (whatever you mortgage rate is) ... wouldn't you?
As to the taxes, the idea that you get to write off the interest neglects that you still have to pay it first.
There is also a huge psychological issue. When you have no debt ... life's ups and downs are easier to deal with. You can sleep easier at night. |
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stan c
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If you had your mortgage for 15 years, you paid about 70% of your interest. Your tax break is from your taxes, not so much as the interest. If you're in a 20% tax bracket, you would get about 200 or 300 more on your return because of the interest.
If you could sleep better at night knowing you have no mortgage to pay, then pay it off. If you can't pay your taxes at tax time, you can always get a 12 month loan. |
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HEY HEY
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You actually pay more in taxes if you dont have a mortgage, if i paid off my house, I would go buy another just to get the tax break. |
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CMass Stan
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If I had no other debts and I had a pile a cash to pay off the mortgage and I'd still have enough let over for emergencies, I'd pay off the mortgage. Tax-deductible finance charges are still finance charges. Seems stupid to me to keep a mortgage just for a tax deduction on something I pay to someone else.
However, with other higher-interest-rate debt in place, I'll keep the mortgage around since it's a stable after-tax low interest debt. Pay off the other debt first, and leave the mortgage for last. |
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Andrew Wiggin
 |
I would pay off my high interest debt first. Typically, credit cards, personal loans, etc. are higher interest than a mortgage (or student loans).
Keep in mind that student loans and mortgages do not count heavily against you in your credit score... Having other credit debt does. |
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Linda B
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I live in Canada, so I have no mortgage interest deduction unless I'm using the house to earn money (e.g., office in home expenses for a biz or renting out the house).
I would pay off higher interest credit cards and loans first. Then I would pay off most of the mortgage. The bank collects a portion of my property taxes from me with each mortgage payment and then they pay them for me. Not only is this a convenience, but it is a safety net. Eight months after I bought my first house, the city sent me a letter saying that due to unpaid property tax (through no fault of mine and unbeknownst to me), they were putting my house up for auction in 10 days. The bank stepped in and paid and the whole mess got straightened out soon thereafter. If I had been on vacation, I might not have seen that letter in time. |
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mazziatplay
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Heavens no! I have no dependents and my mmortgage interest is about the only tax shelter I have left. Besides, I'm never really going to own the "dirt" free and clear, there will always be property taxes. |
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Ronin
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One reason not to would be that you would lose the mortgage interest deduction. You have to look at your entire financial picture to determine if it is prudent to pay off your mortgage because of the tax implications. See a financial planner or accountant. |
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