cinderella
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make payments........simple |
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dunkadog8
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depends on your interest rate. if you mortage interest rate is low say 5 or 6% it may be better to take that money and invest it in a good mutual fund. investments on average make 10% a year. if your mortgage rate is closer to 10%, I would pay it off |
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Q cumber
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Pay off the house right now. Something might happen, you might get into a car accident and lose your ability to work, you may even get laid off. |
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HH@20
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No body seems to address the tax issue. What is the after tax rate of the loan? What is the after tax rate of the intesest? Is the interest in a short term (money market or similar) without risk or in long term fixed income (risk). If it makes economic sense to pay off the loan, use the money you have been putting toward the loan and establish an investment account . |
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Gary
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Make a couple extra payments and you will shaved off some years off your loan. Or just pay it off. |
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lamphinhome
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I'd pay it off if I could. |
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raymo73
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Always compare on what you can make on investments vs what you are avoiding in interest. That should help make the decision. |
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bonstermonster20
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Pay it off right now. Anything can happen at any time. If I had the money to pay off all my debt right now I would do it in a heartbeat. I have been making a lot of sacrifices to pay things on time. |
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Robert B
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PAY IT OFF!!!!!! you don't need to make payments if you don't need to. |
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imissmahboo
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if you dont want to pay off the house right now consider paying a large amount of it whether its half of what you owe or a third of what you owe - this would knock down interest rates a pretty good bit - ( think $200 for the last few years you knock off ) i personally would hope i would pay it all off given the oppurtunity - but then if you spend all your money now and something does happen you have no savings ( ? ) to fall back on where if you pay a larger portion of this off now youll save money in interest wont be completely broke and still have money for a rainy day - and if something ( god forbid ) were to happen you would have been paid off in advance enough to at least make arrangements in what to do - you wont be worrying about next months payment on the drop of a hat youll be able to handle your buisiness with thouhgt |
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creporthelp
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I know many people are telling you to pay it off...BUT, it is really dependent on your situation. If you need to increase your credit score or have little or no credit, a mortgage loan will help build your credit. You can always take part of the money, put it down on the mortgage, and take the rest and invest it. If you already have a good credit score and don't need to build your credit history, then pay it off. Really, it is dependent on your situation. |
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ReLeAsINg ThE tRuTh
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be DONE with it! |
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magiclady2007
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i would pay the whole amount off while interest rates are stable because if they go up again so do your mortgage payments |
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m_c_m_a_n
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It depends, if you have enough to pay it off then you could probably invest that money and make it work for you. However, if the interest on the house is going to be more than the estimated return on investment then payoff is the better choice. |
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Life Is Amazing
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I don't think anyone in there right mind would tell you to continue making payments.
Pay off your home. That would be the best thing to do !! |
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Kathryn
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The fact that it would take all your money to pay off the house is worrisome. But if you set up an equity line of credit so you could pull money out of the house if necessary, that would protect you in case you had some financial difficulties down the road.
If you do decide to pay off the house, you should be disciplined about saving/investing the amount of your previous monthly payment every month because you will need to rebuild your savings. |
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gonzo
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I would never ever take a loan if I can pay my house in full. NEVER! Why pay interest? |
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Somebody Unique
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Pay the amount off and be done with it. That's the smartest thing to do! You'll be glad later on. Just wait until later to spend that extra money. Those things won't go anywhere. |
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Sal
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Here are a few things to consider when making this decision:
1) You pay interest on your loan, however, any money in an account somewhere earns interest. If you can earn at a higher rate than you are paying, in effect you make money.
2) Interest rates fluctuating do not matter on a 30 year fixed mortgage, but will effect ARMs and other shorter term loans. Perhaps you can refinance now with low rates, and not have to worry about market fluctuation.
3) Interest you pay on your home loan is usually tax deductible. You will lose that deduction if you itemize on your tax bill.
4) Its not usually a good idea to spend all of your liquid assetts - how will you deal with an emergency situation or an unexpected bill? |
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Christopher Mansu
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I am amazed at these answers. Most of the time it is best to use leverage to purchase real estate. Real estate only returns 5-6% historically (see American Realtor Assoc.) Why put cash into a home when the stock market has averaged over 11% since the 1920's. Arbitrage is how banks get rich. Why shouldn't we use arbitrage.
Plus what other write off does middle Americans have but intrest on a house? Why lose that?
What are you going to do if you pay it off? Start investing in a retirement plan? Invest the large lump = bigger returns & get a loan = write off the interest. |
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Liz S
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If you have the money to pay off your house I would do it. But if I understood you you are making interst off this house if that is the case set a date like 6months and then pay it off. I wish I could buy a house. |
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Antonio G
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pay it off and be done with it.
then you focus your attention on other bills. 200 dollars a month is not month. roughly like 6-7 bucks a day.
you can spend that on lunch alone. |
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