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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13644848
07/26/20 01:23 PM
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Joined: Dec 2011
Posts: 8,543
Oldrabbit
TFF Celebrity
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TFF Celebrity
Joined: Dec 2011
Posts: 8,543 |
If you decide to refinance, look at the option of a Home Equity Loan. Since you owe less than 1/2 the value it should be available. It also should be close to the same rate, but the advantage is there is usually no Closing Cost, No Home Inspection, and No Survey required. If refinancing you have to consider the cost of those 3 items as they can add several thousand dollars to the amount financed.
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13644850
07/26/20 01:26 PM
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Joined: Jun 2013
Posts: 657
Chevy4dr57
Pro Angler
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Pro Angler
Joined: Jun 2013
Posts: 657 |
Pay it off and look into TOD deed to see if it is applicable to you.
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Re: At 64 do you pay off mortgag
[Re: patriot07]
#13644866
07/26/20 01:46 PM
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Joined: May 2007
Posts: 40,375
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 40,375 |
Refi is the right answer, but if that's not an option then at 4%, I'd pay it off. If Biden is elected, guaranteeing over 4% is going to be difficult. And if you work hard to get 5%, you really only got 1% return for all that work when you could have just relaxed without stressing about it.
If you've got a guaranteed 8% investment, then go for it and email it to me as well. My home equity line is at 6%, so I'll just pocket the gains myself. I dont think you can say that 100 percent. Without knowing, fees for refi, interest rate, his income, his tax situation, how his portfolio is set up, etc etc. That's why I suggested putting it all together and looking at the math of the deal. Also he needs to soul search whether that's where he wants to stay, etc etc. I dont know if he is remarried or not. If it was me and I was single I might be looking for a barndo near my favorite lake. He should not make a quick call based on anything here. Sounds like this will be one of his last big financial choices and you want to get it right.
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13644906
07/26/20 02:19 PM
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Joined: Apr 2005
Posts: 5,797
Keystone
TFF Celebrity
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TFF Celebrity
Joined: Apr 2005
Posts: 5,797 |
Coming in two weeks to Cedar Creek
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Re: At 64 do you pay off mortgag
[Re: Keystone]
#13644914
07/26/20 02:22 PM
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Joined: Aug 2003
Posts: 30,319
RedRanger
burro desagradable
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burro desagradable
Joined: Aug 2003
Posts: 30,319 |
Coming in two weeks to Cedar Creek Speeder Creek.............
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13644924
07/26/20 02:26 PM
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Joined: Feb 2009
Posts: 10,437
BThomas
TFF Guru
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TFF Guru
Joined: Feb 2009
Posts: 10,437 |
You live in Rockwall County.. You are screwed. My house will be paid off before I retire. but, Rockwall County property taxes will prevent me from retiring in Rockwall.
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Re: At 64 do you pay off mortgag
[Re: WAWI]
#13644933
07/26/20 02:31 PM
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Joined: Aug 2003
Posts: 30,319
RedRanger
burro desagradable
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burro desagradable
Joined: Aug 2003
Posts: 30,319 |
Refi is the right answer, but if that's not an option then at 4%, I'd pay it off. If Biden is elected, guaranteeing over 4% is going to be difficult. And if you work hard to get 5%, you really only got 1% return for all that work when you could have just relaxed without stressing about it.
If you've got a guaranteed 8% investment, then go for it and email it to me as well. My home equity line is at 6%, so I'll just pocket the gains myself. I dont think you can say that 100 percent. Without knowing, fees for refi, interest rate, his income, his tax situation, how his portfolio is set up, etc etc. That's why I suggested putting it all together and looking at the math of the deal. Also he needs to soul search whether that's where he wants to stay, etc etc. I dont know if he is remarried or not. If it was me and I was single I might be looking for a barndo near my favorite lake. He should not make a quick call based on anything here. Sounds like this will be one of his last big financial choices and you want to get it right. I'am more concerned of his spelling of "mortgag"
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Re: At 64 do you pay off mortgag
[Re: WAWI]
#13644967
07/26/20 02:54 PM
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Joined: Jun 2010
Posts: 5,584
el Rojo
TFF Celebrity
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TFF Celebrity
Joined: Jun 2010
Posts: 5,584 |
Refi is the right answer, but if that's not an option then at 4%, I'd pay it off. If Biden is elected, guaranteeing over 4% is going to be difficult. And if you work hard to get 5%, you really only got 1% return for all that work when you could have just relaxed without stressing about it.
If you've got a guaranteed 8% investment, then go for it and email it to me as well. My home equity line is at 6%, so I'll just pocket the gains myself. I dont think you can say that 100 percent. Without knowing, fees for refi, interest rate, his income, his tax situation, how his portfolio is set up, etc etc. That's why I suggested putting it all together and looking at the math of the deal. Also he needs to soul search whether that's where he wants to stay, etc etc. I dont know if he is remarried or not. If it was me and I was single I might be looking for a barndo near my favorite lake. He should not make a quick call based on anything here. Sounds like this will be one of his last big financial choices and you want to get it right. ^^^^this
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13644977
07/26/20 03:04 PM
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Joined: Sep 2005
Posts: 27,566
Uncle Zeek
aka "Dad"
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aka "Dad"
Joined: Sep 2005
Posts: 27,566 |
I'm going to be a contrarian. There are few feelings in the world better than knowing that the home you live in has no mortgage debt.
If you can afford to pay off the house, and still have enough cash available for unforeseen emergencies -- for example, that hailstorm that annihilates your roof and isn't fully covered under your homeowners insurance -- then by all means, go for it.
Your investment returns down the road aren't guaranteed to stay above the interest rate you're paying on the mortgage. If the broad markets crash and your investments drop in value, you may want to leave that money untouched while things recover. If your home drops in value, it's still a paid-off roof over your head (and if the value drops, you can challenge your property tax assessment to lower it too). That way, even if you're only getting by on SS retirement (I assume you're waiting for full retirement age), you'll be able to manage.
Oh, one note - make sure that in the year you turn 65, you fight the property tax appraisal on your home and get it as low as possible. It'll be frozen at that level from there on out.
"Decency is not news; it is buried in the obituaries --but it is a force stronger than crime" ~ Robert A. Heinlein Artim Law Firm, PLLC Estate planning & tax attorney 2250 Morriss Road, Suite 205, Flower Mound, Texas 75028 972-746-0758 mobile zac@artimlegal.com
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Re: At 64 do you pay off mortgag
[Re: Uncle Zeek]
#13644981
07/26/20 03:13 PM
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Joined: May 2007
Posts: 40,375
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 40,375 |
I'm going to be a contrarian. There are few feelings in the world better than knowing that the home you live in has no mortgage debt.
If you can afford to pay off the house, and still have enough cash available for unforeseen emergencies -- for example, that hailstorm that annihilates your roof and isn't fully covered under your homeowners insurance -- then by all means, go for it.
Your investment returns down the road aren't guaranteed to stay above the interest rate you're paying on the mortgage. If the broad markets crash and your investments drop in value, you may want to leave that money untouched while things recover. If your home drops in value, it's still a paid-off roof over your head (and if the value drops, you can challenge your property tax assessment to lower it too). That way, even if you're only getting by on SS retirement (I assume you're waiting for full retirement age), you'll be able to manage.
Oh, one note - make sure that in the year you turn 65, you fight the property tax appraisal on your home and get it as low as possible. It'll be frozen at that level from there on out. I paid mine off when I was 44. I used similar thought process. I owed alot more than he did, I was contemplating total retirement but didnt like the way that looked. I dont regret paying it off as it wasnt a big part of my portfolio at the time and I can always sell and down size. I think each situation is different, as are each persons risk tolerance, plans etc.
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13644994
07/26/20 03:27 PM
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Joined: Jun 2017
Posts: 10
dyollpster
Green Horn
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Green Horn
Joined: Jun 2017
Posts: 10 |
You're 15 years into a 30 year mortgage? Generally, interest is all paid upfront. If it's 15 years left on 30, then you're likely mostly paying principal at this point with interest dropping every year. I would keep the cash. It provides way more flexibility. I am not a fan of paying off mortgage loans early, even at 4%.
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Re: At 64 do you pay off mortgag
[Re: dyollpster]
#13644996
07/26/20 03:33 PM
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Joined: Aug 2003
Posts: 30,319
RedRanger
burro desagradable
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burro desagradable
Joined: Aug 2003
Posts: 30,319 |
You're 15 years into a 30 year mortgage? Generally, interest is all paid upfront. If it's 15 years left on 30, then you're likely mostly paying principal at this point with interest dropping every year. I would keep the cash. It provides way more flexibility. I am not a fan of paying off mortgage loans early, even at 4%. Agreed 4% is cheap interest I paid 10% on my first house in 87
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Re: At 64 do you pay off mortgag
[Re: hopalong]
#13645006
07/26/20 03:46 PM
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Joined: Jul 2006
Posts: 49,398
RATZ
Activity Coordinator
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Activity Coordinator
Joined: Jul 2006
Posts: 49,398 |
sell the house, give the money to RATZ for the biggest dam gtg this place has ever seen. oh, buy a van first, so you have a house by the river. this is a great idea
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13645052
07/26/20 04:38 PM
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Joined: Mar 2006
Posts: 8,117
reeltexan
TFF Celebrity
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TFF Celebrity
Joined: Mar 2006
Posts: 8,117 |
but, there's nothing like being debt free.
"..The pleasantist angling is to see the fish Cut with her golden oars the silver stream, And greedily devour the treacherous bait. Bill Shakespeare
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Re: At 64 do you pay off mortgag
[Re: Stump jumper]
#13645078
07/26/20 05:08 PM
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Joined: Feb 2015
Posts: 5,244
kennerdude
TFF Celebrity
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TFF Celebrity
Joined: Feb 2015
Posts: 5,244 |
I’m a fan of being debt-free. Got a 30 year loan on our land and house in 2000 and paid it off in 13 yrs. Rate was 6.79 back then. I don’t like paying interest to anyone.
NIL CARBORUNDUM
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