ElainePDX
Level 2 Member
I look forward to it. I suggest you avoid the pudding containers - could get messy!
Paying off a mortgage early?
- Thread starter ElainePDX
- Start date
MilesAbound
Level 2 Member
Just to add my two pennies worth... I never met a single person in my entire life who owns a home without a mortgage and did not love it
And on the flip-side I know many people who's lives have been ruined by having a mortgage
And on the flip-side I know many people who's lives have been ruined by having a mortgage
Bit of a skewed pool though- might be more accurate a comparison if those ruined also had the capacity to own outright but opted to use a mortgage.
MilesAbound
Level 2 Member
don't think it's skewed - the pool you mention is skewed as that is a small niche of the population
Yeah but that's the point- big picture, the reason many people you cited got into trouble is for other reasons than the mortgage - in and of itself it's not a bad tool, but it can enable problems.
That's the concept of leverage really- in the right hands it's helpful, but in the wrong hands (with other ingrained bad habits and overstretching themselves) people can get into serious problems with them.
That is right, the idea is to leverage the mortgage, wisely investing the freed up cash into productive channels, and to be disciplined in paying back your mortgage.
And yes, leveraging is not for everyone, as Matt pointed out above.
MilesAbound
Level 2 Member
Unfortunately the number of people capable of doing this is, IMHO, relatively small
And the number of people who are capable of doing this is definitely significantly lower than the number of people who think they are capable of doing this
Very true. And those that only think they are capable shouldn't get into leveraging, if they haven't proven themselves in other financial discipline matters.
I'm single, in my mid 40's and paid off my house a few years ago. Have never doubted my decision for a single minute. It's very freeing to know that if the economy tanks again and I lose my job/portfolio value -- I will always have a cheap place to live. Note that I said "cheap", not free. People sometimes forget that your monthly payment doesn't go away completely since you still have to pay taxes and insurance (and HOA in my case).
The ONLY downside I've run into in paying off the mortgage (and this definitely falls into the category of "first world problems") -- Barclays apparently thinks less of me as a credit risk since I no longer show a monthly mortgage obligation on my credit report. I cannot get a second credit card from Barclays to save my life, despite a credit score of 785. I know that that the lack of mortgage is only part of their calculation but it's still irritating to be "punished" for substantially lowering my monthly payment obligation.
The ONLY downside I've run into in paying off the mortgage (and this definitely falls into the category of "first world problems") -- Barclays apparently thinks less of me as a credit risk since I no longer show a monthly mortgage obligation on my credit report. I cannot get a second credit card from Barclays to save my life, despite a credit score of 785. I know that that the lack of mortgage is only part of their calculation but it's still irritating to be "punished" for substantially lowering my monthly payment obligation.
Yeah its pretty crappy that they decide paying off your debt and owning outright makes you less of a good candidate for credit... glad you have achieved that at relatively early age.
Annie H.
Egalatarian
Thanks for helping me understand why Barclays doesn't like me either. I always thought it was because of TU. My TU score is about 20 points lower than EXP and EQ. You make me feel lucky that I have two cards although I have been reallocating between them. They make me feel like a teenager and not in a good way.
I just had a 10 year old car loan and a 10 year old mortgage fall off my reports and I took a bit of a hit.