Comments on: Contrary to popular opinion, paying off your mortgage is the dumbest move you can make …

By: Adrian

Adrian — Mon, 15 Mar 2010 07:59:55 +0000

@ Eddie – I didn’t say NOT to pay off your house; mine is worth $6 million and I don’t owe a dime. Read the article again …

By: Eddie

Eddie — Mon, 15 Mar 2010 04:02:29 +0000

You are an idiot. Don’t pay off you house ? WTF!

By: Ryan @ Planting Dollars

Ryan @ Planting Dollars — Sat, 26 Dec 2009 04:53:34 +0000

Adrian,

Although a riskier choice (depends on your definition of risk I suppose) this is something most wealthy people I know do. Especially with incredibly low interest rates (4-5%), it’s hard not to beat that small of an interest rate.

Been through this same argument with friends before and a lot of people just can’t seem to wrap their heads around it. Mostly because popular culture says… get a job… buy a house… pay off the house… retire… die!

Ryan

By: Safe as houses?- 7million7years

Safe as houses?- 7million7years — Thu, 08 Oct 2009 14:50:26 +0000

[...] for the ‘diss Adrian party’ is Dan who thinks that one of my favorite posts – Contrary to Popular Opinion, Paying Off Your Mortgage Is The Dumbest Move You Can Make – is ‘ridiculous’. Seriously, thanks for opening up an important new discussion [...]

By: Speak up!- 7million7years

Speak up!- 7million7years — Mon, 05 Oct 2009 09:26:44 +0000

[...] on in the week, I will introduce Brad, who challenges the notion that paying off your mortgage is the dumbest thing that you can do … Share This [...]

By: Dan

Dan — Sun, 04 Oct 2009 00:01:31 +0000

This is ridiculous. The author apparently believes he is untouchable and will never lose his job, get sick, or die.

You can do all the complex math you want, but the simple fact of the matter is that Risk is the biggest variable, and I don’t see it show up in your equation once.

Don’t be stupid America, and dont prescribe to a system that encourages you to continue owing people money long after you need to.

Pay off your house, free up some income, then pay off your credit cards, pay off your car, and be a happier, less stressed individual.

By: Adrian

Adrian — Wed, 04 Feb 2009 21:10:35 +0000

@ Dave M – You say potAYto, I say potAHto … that’s what makes the world go around

If your house isn’t an asset (and, I agree, it’s a pretty poor one … it will probably fail this test: http://7million7years.com/2009/02/04/a-new-way-to-look-at-your-home/) then does it make sense to plow your ‘free cash’ into it rather than into higher returning investments?

BTW: Try missing your 99th payment and see if having the majority of the equity in your hands rather than the banks saves you from foreclosure

By: Dave M

Dave M — Wed, 04 Feb 2009 20:18:21 +0000

Not sure I agree, unless I’m just not getting it… My house, as much as I’d like to consider it an asset, is really a liability. It’s constantly costing me money! So, I can’t look at it as a business since the goal of any business should be to produce income.

Are you suggesting we should borrow money to start and/or purchase a business that produces zero income?

Also, if I keep my mortgage to term, I end up paying 2-3 times more (with interest) than I actually borrowed (ie. than the house is worth).

And as far as the government tax incentive… If I’m in a 26% tax bracket, I pay $1 in mortgage interest just to save .26 cents on my taxes. Again, that’s nice while I’m still trying to pay off the mortgage, but I’d rather get it paid off as fast as possible, keep the other .74 cents in my pocket, and be secure knowing I can’t be kicked out if I don’t make the payment.

Hey, if this sounds like a good deal to you, go ahead and send me all your money, and I’ll send you back 26% of it in return!

Incidentally, regarding point #1… If you don’t make your payments, and the bank takes back the house, they DO benefit from the increase in property value — since they own the house, of course.

Dave

By: Adrian

Adrian — Mon, 29 Dec 2008 11:15:45 +0000

@ Tryin – You are right, a paid off house won’t put food on your table (directly). If you do refi (just check the refi costs against the interest rate savings) I suggest that you lock in the rate for as long as possible.

By: tryin 2 get ahead

tryin 2 get ahead — Sun, 28 Dec 2008 15:41:03 +0000

Thanks for the help, on the other side of the coin,,, to keep cash availible in a very uncertian economy, I would not mind doing a refi. on my house because the rate at my bank is 5 1/2 right now and thaaat would drop me over a point from where I am now I feel like if the economy got real bad I would have cash to spend , instead of a debt free mortgage that I couldnt buy groceries with, know what I mean,,,,,, also if the economy gets worse it may be to mt advantage to wait to refinance, because chances are rates will go below 5 1/2 possibly in the next year. Get a low rate but still keep the tax advantage of mortgage int. What is your thoughts on this? thanks