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Re: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13847553
01/15/21 07:03 PM
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Joined: May 2010
Posts: 9,251
Space
TFF Celebrity
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TFF Celebrity
Joined: May 2010
Posts: 9,251 |
I say pay it off. Use the cash as leverage. I like to have everything paid off, it's a good feeling to not owe anything.
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Re: Pay it Off...or, Finance it?
[Re: Stump jumper]
#13847563
01/15/21 07:10 PM
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Joined: Aug 2006
Posts: 18,230
COFF
TFF Guru
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TFF Guru
Joined: Aug 2006
Posts: 18,230 |
My tendency would be to pay it off. Rates are indeed great right now, but if I'm at your life stage PH, my tolerance for risk is practically zero. I'd be sticking my money in t-bills or municipal bonds and be happy with my 1%.
Now gjarman made an interesting point regarding the mortgage company helping with an insurance claim. But as a veteran you are eligible for USAA, and I would not think you'd ever have issues on a claim with USAA. Tell that to the many folks that have. Not sure if they have been resolved but at one time there were several lawsuits pending against USAA in TX. There's no such thing as an insurance company without a few dozen pending lawsuits. All I can say is I know of far more people that are happy with USAA them than any other insurance company. I only switched to them a few months ago and no claims yet, so I can't offer any personal experience though.
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Re: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13847814
01/15/21 09:48 PM
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Joined: Sep 2005
Posts: 27,591
Uncle Zeek
aka "Dad"
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aka "Dad"
Joined: Sep 2005
Posts: 27,591 |
The conventional wisdom on this subject is to finance your house, invest the cash at a higher interest rate, and use your market earnings to make the house payment. Since inflation will eat into the value of the dollar over time, the dollars you would use to pay the mortgage 5-10 years from now will be worth less than the dollars you would use to pay the house off right now.
But, and this is a big but, there is a certain peace of mind that comes with having a roof over your head that's paid for. You can't put a dollar figure on that peace.
My home is paid in full, and I don't have anywhere near the cash that you stated. Guess which approach I like?
"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: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13847825
01/15/21 09:53 PM
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Joined: Jul 2010
Posts: 75,917
banker-always fishing
Pumpkin Head
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Pumpkin Head
Joined: Jul 2010
Posts: 75,917 |
I have always loved using other peoples money when it comes to financing. If the interest rate is a good low one finance it. It is also good to have the cash on hand anytime you fill like paying the loan off!
IGFA World Record Rio Grande Cichlid. Lake Dunlap. John 3:16 Sinner's Prayer. God forgive me a sinner. I accept Jesus Christ as my Savior !
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Re: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13847836
01/15/21 10:04 PM
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Joined: Sep 2008
Posts: 121,176
hopalong
Pescador Loco
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Pescador Loco
Joined: Sep 2008
Posts: 121,176 |
since it was a fire claim do capitol gains come into play on the settlement amount?
" Hop, set the hook"! hopalong 99,999 TexDawg 99,999 FJB! not my president by a long shot!
lake fork FISHERMANS COVE MARINA/reservations - 903 474 7479
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Re: Pay it Off...or, Finance it?
[Re: hopalong]
#13847955
01/15/21 11:20 PM
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Joined: Sep 2005
Posts: 27,591
Uncle Zeek
aka "Dad"
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aka "Dad"
Joined: Sep 2005
Posts: 27,591 |
since it was a fire claim do capitol gains come into play on the settlement amount?
Shouldn't. But they do get taken into account against any claimed casualty loss on tax return.
"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: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13848049
01/16/21 12:55 AM
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Joined: Jul 2007
Posts: 1,266
Tsunami_1
Extreme Angler
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Extreme Angler
Joined: Jul 2007
Posts: 1,266 |
My personal choice, pay it off. You could probably make some money by investing but there's pure satisfaction knowing it's your and it's paid for. It doesn't sound like you're using all the money so you'll still have plenty to invest or have handy in case of emergencies. I totally despise paying anyone any amount of interest.
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Re: Pay it Off...or, Finance it?
[Re: cocodrie]
#13848052
01/16/21 12:57 AM
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Joined: Feb 2013
Posts: 5,292
Bass-N-Buck Master
TFF Celebrity
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TFF Celebrity
Joined: Feb 2013
Posts: 5,292 |
20% down at a low interest rate and invest the rest in bitcoins. Just be sure you write your password down and keep it in a safe deposit box donโt wanna forget it when you have 260 mill just setting there and no way to get it.
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Re: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13848054
01/16/21 12:58 AM
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Joined: Nov 2014
Posts: 23,523
SteezMacQueen
TFF Guru
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TFF Guru
Joined: Nov 2014
Posts: 23,523 |
Have not found a house yet, but I have a question for our financial folks.
I have close to a million sitting in checking accounts waiting for me to choose a house. Given the low interest rates available today, is it better to finance a house purchase and have that money working for me...or just pay cash for the house and enjoy the comfort of not having a house payment?
Finance it. The money is cheap to borrow and the money invested will out perform the mortgage interest losses.
Eat. Sleep. Fish.
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Re: Pay it Off...or, Finance it?
[Re: SteezMacQueen]
#13848067
01/16/21 01:13 AM
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Joined: Jan 2007
Posts: 14,686
Happykamper
TFF Guru
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TFF Guru
Joined: Jan 2007
Posts: 14,686 |
I would finance it with these low interest rates, no house payment is nice but sitting on a million is a good option.
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Re: Pay it Off...or, Finance it?
[Re: Pilothawk]
#13848069
01/16/21 01:19 AM
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Joined: Jun 2012
Posts: 20,813
Douglas J
TFF Guru
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TFF Guru
Joined: Jun 2012
Posts: 20,813 |
best humble brag of 2021 so far put a chunk down and put your remaining money to work for you. cheap to borrow and lots of good opportunities out there to make some good returns
#MFGA
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Re: Pay it Off...or, Finance it?
[Re: Happykamper]
#13848086
01/16/21 01:29 AM
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Joined: May 2007
Posts: 40,570
WAWI
TFF Guru
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TFF Guru
Joined: May 2007
Posts: 40,570 |
I would finance it with these low interest rates, no house payment is nice but sitting on a million is a good option. If you loan me a million I'll sit on it for you.
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Re: Pay it Off...or, Finance it?
[Re: WAWI]
#13848174
01/16/21 03:03 AM
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Joined: Jan 2007
Posts: 14,686
Happykamper
TFF Guru
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TFF Guru
Joined: Jan 2007
Posts: 14,686 |
I would finance it with these low interest rates, no house payment is nice but sitting on a million is a good option. If you loan me a million I'll sit on it for you. LOL, if I had it I would damn sure loan it to you.
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Re: Pay it Off...or, Finance it?
[Re: COFF]
#13848275
01/16/21 05:35 AM
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Joined: Aug 2003
Posts: 30,324
RedRanger
burro desagradable
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burro desagradable
Joined: Aug 2003
Posts: 30,324 |
My tendency would be to pay it off. Rates are indeed great right now, but if I'm at your life stage PH, my tolerance for risk is practically zero. I'd be sticking my money in t-bills or municipal bonds and be happy with my 1%.
Now gjarman made an interesting point regarding the mortgage company helping with an insurance claim. But as a veteran you are eligible for USAA, and I would not think you'd ever have issues on a claim with USAA. Tell that to the many folks that have. Not sure if they have been resolved but at one time there were several lawsuits pending against USAA in TX. There's no such thing as an insurance company without a few dozen pending lawsuits. All I can say is I know of far more people that are happy with USAA them than any other insurance company. I only switched to them a few months ago and no claims yet, so I can't offer any personal experience though. USAA is best homeowners insurance out there. I do alot of claims per year, they are the best out there and has the best customer service.
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Re: Pay it Off...or, Finance it?
[Re: Bob Davis]
#13848346
01/16/21 01:00 PM
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Joined: Oct 2013
Posts: 6,524
AmpedUp
TFF Celebrity
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TFF Celebrity
Joined: Oct 2013
Posts: 6,524 |
Buy it and own it and don't look back. You and I are both past the time to gamble money anyway.
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