Is my *entire* life financed when I have a mortgage?

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B4Xt3r
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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 7:53 pm

8foot7 wrote:
Thu Mar 14, 2019 8:22 am
Technically, yes. But I don't think it's especially useful to think this way unless you have an unmanageable mortgage.
You don't think its useful to the impact that discretionary purchases have on future networth?

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 7:54 pm

Dottie57 wrote:
Thu Mar 14, 2019 8:52 am
sunny_socal wrote:
Thu Mar 14, 2019 8:17 am
I've wondered _exactly_ the same thing OP!

My thoughts:
- I tell myself "money is fungible", as you'll often hear on these boards
- Is there any practical difference between a mortgage payment and a rent payment? If you rented you wouldn't have debt but you'd still have that payment
- It's best to have a balanced approach rather than to be overly single-minded. I've gone through phases of focusing on debt payment, focus on savings, focus on experiences (which are often related to spending, eg. a vacation.)
- What happens when the mortgage is paid? You'll likely still have taxes to pay.
- I try to take a step back. Is my overall debt going down? Net worth going up? Then I'm doing ok.
Agreed. OP needs a place to live spit rent or mortgage. I bought inexpensive condo.
Was spit a typo?

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 7:54 pm

mega317 wrote:
Thu Mar 14, 2019 9:10 am
OP your last sentence says much. Think of the people you know buying luxury cars or second homes or other huge things while carrying a mortgage.
I know...sometimes it staggers me.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 7:55 pm

ponyboy wrote:
Thu Mar 14, 2019 9:59 am
You'll always have a "mortgage."

Property taxes and home insurance. For most, thats $4k+/year. It never goes away. And yes, I know some pay $10k+ for these.
This is equivocation. A mortgage is different than taxes...

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 7:56 pm

aristotelian wrote:
Thu Mar 14, 2019 11:01 am
Yes. Also, your whole portfolio is leveraged. However, over a 30 year period, investing with a mortgage is extremely likely to work out in your favor, particularly at historically low mortgage rates.
Yeah, this has bugged me before. I'm almost ready to only do the company match in my 401(K) if I had a mortgage.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 8:01 pm

bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
First, who cares what you call it?
I do (obviously). I started the thread.
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Second, you'd be paying rent if you didn't have a mortgage, so it's not an apples to apples comparison, is it?
Could you point out where I compared rent to having a mortgage? I don't believe that I made such a comparison.
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Third, you are only - at most - financing your "life" to the extent of the interest you pay. Presumably you earn more than your mortgage interest. How would that be considered "financing your entire life?"
I don't follow that.
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Fourth, at a 0% rate, you aren't financing anything. You are paying later with money that is worth less. It's negative financing, if anything.
B4Xt3r wrote:
Thu Mar 14, 2019 7:37 am
Let's say ... a non-zero interest rate...
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Don't sweat the semantics.
The issues here are way more than simple semantics, there is a huge impact on future net worth of carrying a mortgage for longer than necessary.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 8:03 pm

knpstr wrote:
Thu Mar 14, 2019 1:12 pm
Yes.

... think it is worthwhile to think about these things. Not to say everyone should abstain from all luxury, but rather to ponder the true "cost" of luxury (which is usually nothing more than temporary pleasure and may very well be a cause of stress/displeasure later).

:beer
I'm pretty sure I agree with everything that you wrote. In the early years, a 30 year note @4% seems to make luxury purchases cost 2 to 3x what they sticker for. It's kinda ccrazy to be honest.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 8:04 pm

MotoTrojan wrote:
Thu Mar 14, 2019 1:18 pm
corysold wrote:
Thu Mar 14, 2019 8:21 am
Couldn't you also say, once your mortgage is paid off, that every purchase is financed at the return you could get if you invested that money?

But you'd also have to put a dollar figure on the happiness that item gives you over time, so it seems like a never ending cycle of trying to figure out value.
This. Man that coffee I bought back in 1931 would’ve made me a millionaire if I had just invested instead.
Maybe you should have drank water 8-)

(I'm addicted to coffee...)

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 8:06 pm

BuckyBadger wrote:
Thu Mar 14, 2019 7:40 am
Sometimes life is more than math...
No where did I say that life was just math, so I cannot see the value in (seemingly) claiming that I did.
goblue100 wrote:
Thu Mar 14, 2019 7:48 am
Do you really want to do nothing but go to work and eat peanut butter and jelly sandwiches until your house is paid for? I'd rather balance a little more life in those years and accept that it will take longer to pay off the house.
No, and I never claimed that I wanted too. I also can't see how your reply sheds light my opening question.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 8:06 pm

ohai wrote:
Thu Mar 14, 2019 8:20 am
OP yes, you are correct. The mortgage is collateralized by your house, but economically, every dollar you choose to spend away from paying down debt is effectively borrowed at your mortgage rate.
Thanks, this is what I thought was going on.

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Re: Is my *entire* life financed when I have a mortgage?

Post by TropikThunder » Thu Mar 14, 2019 8:29 pm

B4Xt3r wrote:
Thu Mar 14, 2019 8:06 pm
ohai wrote:
Thu Mar 14, 2019 8:20 am
OP yes, you are correct. The mortgage is collateralized by your house, but economically, every dollar you choose to spend away from paying down debt is effectively borrowed at your mortgage rate.
Thanks, this is what I thought was going on.
Of course you do, you finally found someone who agreed with you. :P
B4Xt3r wrote:
Thu Mar 14, 2019 7:53 pm
8foot7 wrote:
Thu Mar 14, 2019 8:22 am
Technically, yes. But I don't think it's especially useful to think this way unless you have an unmanageable mortgage.
You don't think its useful to the impact that discretionary purchases have on future networth?
I choose not to evaluate every discretionary purchase I make for its impact on my future net worth 15, 20, or 30 years from now (besides the fact that one man's discretionary is another man's essential).
Last edited by TropikThunder on Thu Mar 14, 2019 8:39 pm, edited 3 times in total.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Thu Mar 14, 2019 8:37 pm

TropikThunder wrote:
Thu Mar 14, 2019 8:29 pm
B4Xt3r wrote:
Thu Mar 14, 2019 8:06 pm
ohai wrote:
Thu Mar 14, 2019 8:20 am
OP yes, you are correct. The mortgage is collateralized by your house, but economically, every dollar you choose to spend away from paying down debt is effectively borrowed at your mortgage rate.
Thanks, this is what I thought was going on.
Of course you do, you finally found someone who agreed with you. :P
B4Xt3r wrote:
Thu Mar 14, 2019 7:53 pm
8foot7 wrote:
Thu Mar 14, 2019 8:22 am
Technically, yes. But I don't think it's especially useful to think this way unless you have an unmanageable mortgage.
You don't think its useful to the impact that discretionary purchases have on future networth?
I choose not to evaluate every discretionary purchase I make for its impact on my future net worth 15, 20, or 30 years from now (besides the fact that one man's discretionary is another man's essential).
:oops:

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Re: Is my *entire* life financed when I have a mortgage?

Post by TropikThunder » Thu Mar 14, 2019 8:40 pm

B4Xt3r wrote:
Thu Mar 14, 2019 8:37 pm
TropikThunder wrote:
Thu Mar 14, 2019 8:29 pm

I choose not to evaluate every discretionary purchase I make for its impact on my future net worth 15, 20, or 30 years from now (besides the fact that one man's discretionary is another man's essential).
:oops:
I'm shocked! Shocked I tell you! Someone else has a different opinion then me!

I spent $2,500 to upgrade my TV when I bought a house just over a year ago (65" LG OLED flatscreen). If I had paid that $2,500 as extra principal on my mortgage, it would have saved me about $5,000 over the 30 years of my mortgage. That's $167 a year. I'd rather have the TV, it's amazing. "Different" does not equal "better".

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Re: Is my *entire* life financed when I have a mortgage?

Post by CFM300 » Thu Mar 14, 2019 8:52 pm

B4Xt3r wrote:
Thu Mar 14, 2019 7:37 am
Let's say that I have a mortgage (really any debt) that is financed at a non-zero interest rate. Lets then say that I make a $X purchase instead of prepaying the same amount to the mortgage. On the margin, doesn't that mean that I'll pay off the mortgage $X dollars (plus interest) later? If that is true, then the $X purchase is effectively financed at the mortgage rate, for the duration of the mortgage, correct?
As others have noted, yes, this is correct.

I also think it's useful in the same way as calculating your true hourly wage, and then thinking about how long you'll have to work in order to buy that shiny new thing. Both help a buyer understand the full cost of a purchase.

For many people, those can be real paradigm shifts.

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Re: Is my *entire* life financed when I have a mortgage?

Post by Dottie57 » Thu Mar 14, 2019 9:00 pm

B4Xt3r wrote:
Thu Mar 14, 2019 7:54 pm
Dottie57 wrote:
Thu Mar 14, 2019 8:52 am
sunny_socal wrote:
Thu Mar 14, 2019 8:17 am
I've wondered _exactly_ the same thing OP!

My thoughts:
- I tell myself "money is fungible", as you'll often hear on these boards
- Is there any practical difference between a mortgage payment and a rent payment? If you rented you wouldn't have debt but you'd still have that payment
- It's best to have a balanced approach rather than to be overly single-minded. I've gone through phases of focusing on debt payment, focus on savings, focus on experiences (which are often related to spending, eg. a vacation.)
- What happens when the mortgage is paid? You'll likely still have taxes to pay.
- I try to take a step back. Is my overall debt going down? Net worth going up? Then I'm doing ok.
Agreed. OP needs a place to live spit rent or mortgage. I bought inexpensive condo.
Was spit a typo?
It’s a fat finger - spit fingered typo.

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Re: Is my *entire* life financed when I have a mortgage?

Post by bottlecap » Thu Mar 14, 2019 9:06 pm

B4Xt3r wrote:
Thu Mar 14, 2019 8:01 pm
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
First, who cares what you call it?
I do (obviously). I started the thread.
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Second, you'd be paying rent if you didn't have a mortgage, so it's not an apples to apples comparison, is it?
Could you point out where I compared rent to having a mortgage? I don't believe that I made such a comparison.
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Third, you are only - at most - financing your "life" to the extent of the interest you pay. Presumably you earn more than your mortgage interest. How would that be considered "financing your entire life?"
I don't follow that.
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Fourth, at a 0% rate, you aren't financing anything. You are paying later with money that is worth less. It's negative financing, if anything.
B4Xt3r wrote:
Thu Mar 14, 2019 7:37 am
Let's say ... a non-zero interest rate...
bottlecap wrote:
Thu Mar 14, 2019 12:37 pm
Don't sweat the semantics.
The issues here are way more than simple semantics, there is a huge impact on future net worth of carrying a mortgage for longer than necessary.
Sorry I responded. Carry on.

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Re: Is my *entire* life financed when I have a mortgage?

Post by aristotelian » Thu Mar 14, 2019 9:21 pm

B4Xt3r wrote:
Thu Mar 14, 2019 7:56 pm
aristotelian wrote:
Thu Mar 14, 2019 11:01 am
Yes. Also, your whole portfolio is leveraged. However, over a 30 year period, investing with a mortgage is extremely likely to work out in your favor, particularly at historically low mortgage rates.
Yeah, this has bugged me before. I'm almost ready to only do the company match in my 401(K) if I had a mortgage.
Don't do that. The tax advantage is a guaranteed return, plus you will get investment gains over 30 years.

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Re: Is my *entire* life financed when I have a mortgage?

Post by bogglizer » Thu Mar 14, 2019 11:28 pm

If I have $1 to spend, pay down mortgage, keep as cash, or invest, I can consider the inflation rate, my mortgage rate, or my expected investment rate. Clearly, the mortgage rate is applicable if the only choices under consideration are spend versus mortgage pay down. Once I open up the trade space to other possibilities, then just considering the mortgage rate no longer seems appropriate.

IMO
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Re: Is my *entire* life financed when I have a mortgage?

Post by IMO » Fri Mar 15, 2019 3:05 am

B4Xt3r wrote:
Thu Mar 14, 2019 8:01 pm
The issues here are way more than simple semantics, there is a huge impact on future net worth of carrying a mortgage for longer than necessary.
Regarding semantics, define "huge impact on future net worth" and "longer than necessary"?

There are many people in places like Calif that have experienced high real estate appreciation when carrying a mortgage (for when they could not outright buy a home in cash) which has resulted in significantly positive impact on their net worth. In other words, if they didn't carry a mortgage they would not have been able to buy a home and personally experience the high appreciation of their home (which was best for their future net worth). And at the same time (in the long run) I suspect it had a positive effect on their net worth in terms of essentially keeping their "housing expense" more stable than renting allowing relatively more money to be invested otherwise and/or resulted in less housing expense in the long term (vs renting). I know of quite a few people in that situation.

Your original point is interesting, but it sort of just seems like it is the equivalent of lost opportunity cost of having equity in a home. You could not hold a mortgage and also own a home, but then it now becomes the thought of having funds tied up in the equity of your house. The same argument goes towards any debt including student debt, vehicle loans, etc.

But when it comes down to it, what is the thought behind your post? Do you want to pay all cash for a home? Do you want to prepay principal? Do you want to rent instead? One's housing, no matter if you own/rent effectively costs you opportunity money to save/invest. The only way to avoid such a situation is to live in a cardboard box or live with someone where you are not required to contribute to the cost of your housing (such as what minor children do and occasionally some adult children).
Edit: Even then, ask some Californian's they didn't buy (even if theoretically they had no housing costs) did they miss out on the ability to enhance their long term net worth by not buying sooner vs. later?

The bottom line on your post seems somewhat like the old rent vs. buy argument. There are many mathematical factors to that formula and there are also non-mathematical factors to be considered in rent vs. buy. In your post's concern, the answer is "sure you are correct" but then it makes the most sense to figure out what is the best cost effective housing situation for yourself/family.

I think Dave Ramsey agrees with the thought that carrying any debt is bad, with the mortgage being the least of the bad. When it comes to keeping a low rate mortgage vs. paying it off early, many on this site will provide reasonable math to support the decision to hold onto a mortgage is most beneficial to one's long term net worth. Others chose to pay a mortgage off early for other personal/psychological and financial reasons that make the most personal sense for them. There is no "right answer" per se as it's always personal decision/reasons.

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Re: Is my *entire* life financed when I have a mortgage?

Post by nps » Fri Mar 15, 2019 5:48 am

B4Xt3r wrote:
Thu Mar 14, 2019 8:06 pm
ohai wrote:
Thu Mar 14, 2019 8:20 am
OP yes, you are correct. The mortgage is collateralized by your house, but economically, every dollar you choose to spend away from paying down debt is effectively borrowed at your mortgage rate.
Thanks, this is what I thought was going on.
What's so significant about a mortgage or debt in general though? Spending vs investing has a similar calculation, does that trade-off concern you equally?

The spending vs investing consequence can also be much longer term. For a 30 year mortgage, you're not "borrowing" your discretionary purchases at your mortgage rate for longer than 30 years. For a dollar that would have been invested though, the missing rate of return could easily persist beyond your lifetime.

And of course these decisions aren't mutually exclusive. If you have a mortgage, you don't just have to decide spend vs pay down the mortgage, you have to decide spend vs pay down the mortgage (or other debt) vs save/invest.

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Re: Is my *entire* life financed when I have a mortgage?

Post by chevca » Fri Mar 15, 2019 6:44 am

One word, OP..... balance.

You don't have to deprive yourself to save up cash and pay for a house upfront. You don't have to deprive yourself because you carry a mortgage and every extra dollar should go towards the mortgage. Live a little, just don't go overboard.

Or, just rent and pay for someone else's mortgage. But, at least your life isn't financed then. Or, is it? :happy

When others said, life is more than math... The sooner you can grasp that, the better for you, IMO. You're off balance thinking of your whole life being financed and only contributing to the company match if you carry a mortgage. There's more to it than just numbers.

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Re: Is my *entire* life financed when I have a mortgage?

Post by dziuniek » Fri Mar 15, 2019 7:00 am

ponyboy wrote:
Thu Mar 14, 2019 9:59 am
You'll always have a "mortgage."

Property taxes and home insurance. For most, thats $4k+/year. It never goes away. And yes, I know some pay $10k+ for these.
Not that far off from the 10k.... (property tax + insurance)... whoo wheee CT.

Average Property Tax rate in CT was $7,105 in 2017... (Atttom Data) with insurance that's about $8,000 annual - average!!!

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Re: Is my *entire* life financed when I have a mortgage?

Post by BuckyBadger » Fri Mar 15, 2019 7:01 am

Wow. Not sure why the OP of bring so aggressively trollish.

Anyone who reads this board for more than 5 minutes would realize that there are some people who hate all debt so much that they pay down a mortgage above all else. Also that there are some people who believe that other things are more important - be that investing or spending. Nearly everyone promotes some sort of balance.

I'm not sure what the OP is looking for here other than to be argumentative and start fights?

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Fri Mar 15, 2019 7:03 am

BuckyBadger wrote:
Fri Mar 15, 2019 7:01 am
Wow. Not sure why the OP of bring so aggressively trollish.

Anyone who reads this board for more than 5 minutes would realize that there are some people who hate all debt so much that they pay down a mortgage above all else. Also that there are some people who believe that other things are more important - be that investing or spending. Nearly everyone promotes some sort of balance.

I'm not sure what the OP is looking for here other than to be argumentative and start fights?
I probably came off harsher than I intended, I'm not intending to be argumentative nor to start anything. My communication style is "direct" shall we say. Probably a little like KF in that regard.

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Re: Is my *entire* life financed when I have a mortgage?

Post by knpstr » Fri Mar 15, 2019 7:05 am

nps wrote:
Fri Mar 15, 2019 5:48 am
And of course these decisions aren't mutually exclusive. If you have a mortgage, you don't just have to decide spend vs pay down the mortgage, you have to decide spend vs pay down the mortgage (or other debt) vs save/invest.
You are absolutely correct.

I think that is where a "goal" puts things into order. If you have a goal to retire in 10, 20, 30 years, then you can start to project what way is going to get you there, you may find their are multiple ways.

So while it is useful to think about the question asked in the OP (to get a better perspective on things), it is not entirely productive without also pairing this perspective with a goal or an "end". Luxuries and increasing amounts of money are really nothing more than means to an end --- the end being living the kind of life you want to live.

People can achieve the lives they want with affording luxury along the way. But I think too many "spend blindly", not realizing the implications of their day to day decisions, and resultantly end up dissatisfied with their current condition (since luxuries do not provide happiness, only temporary pleasure). Again, that's why I think the question asked here is useful, it gets one thinking about the bigger picture.
Very little is needed to make a happy life; it is all within yourself, in your way of thinking. -Marcus Aurelius

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Fri Mar 15, 2019 7:06 am

So playing with, https://www.bankrate.com/calculators/ma ... lator.aspx, I think that I convinced myself that each marginal purchase does have the effect of borrowing more.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Fri Mar 15, 2019 7:08 am

Beaker wrote:
Thu Mar 14, 2019 3:41 pm
No. There is nothing special about the percentage of housing expenses that goes to debt.

Hypothetically, say a retired person has $10 million dollars in a three fund portfolio, spends $100,000 / year, and has a $300,000 mortgage at 3.5%.

Would you say that this person's "entire life is financed"? Obviously not. This person has reasonable expectations that *not* paying the mortgage is the correct financial decision, despite having the means to pay the mortgage off immediately.

But... this is true *regardless* of net worth. Say this person was deciding between investing in his 401k, or paying down the mortgage early. Most financial experts would still argue this is still the right decision.

But... investing more in a 401k is still the "right" decision even if you have NO debt. It's the right decision for almost every dollar. Why not take it to extremes? Live like a pauper, put every cent into the stock market, and die "rich"?

This is not a good system of rationalizing purchases.
I think you have a point here, in the case that there are guaranteed alternative investments that could be had.

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Re: Is my *entire* life financed when I have a mortgage?

Post by B4Xt3r » Fri Mar 15, 2019 7:09 am

BuckyBadger wrote:
Fri Mar 15, 2019 7:01 am
...
I'm not sure what the OP is looking for here other than to be argumentative and start fights?
I'm looking for clear answers to my opening question :)

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Re: Is my *entire* life financed when I have a mortgage?

Post by Golf maniac » Fri Mar 15, 2019 7:13 am

I think there is a balance. But the OP is obviously very debt adverse which is a good thing as long as significant other is on board. I would much rather be on his end then the millions of people who live paycheck to paycheck. I have a mortgage that could be easily paid off but the interest rate is about half of what I earn on my portfolio over a long term. So I choose the leverage. If I ever get tired of it I can pay it off, but with the knowledge there is an opportunity cost of lost asset appreciation from the investments I use. Putting it down on paper and seeing the investment results both ways helped me to feel comfortable with a mortgage.

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Re: Is my *entire* life financed when I have a mortgage?

Post by LiterallyIronic » Fri Mar 15, 2019 7:17 am

dziuniek wrote:
Fri Mar 15, 2019 7:00 am
ponyboy wrote:
Thu Mar 14, 2019 9:59 am
You'll always have a "mortgage."

Property taxes and home insurance. For most, thats $4k+/year. It never goes away. And yes, I know some pay $10k+ for these.
Not that far off from the 10k.... (property tax + insurance)... whoo wheee CT.

Average Property Tax rate in CT was $7,105 in 2017... (Atttom Data) with insurance that's about $8,000 annual - average!!!
Yikes, that's painful. My property tax + homeowners insurance is ~$1,500/year.

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Re: Is my *entire* life financed when I have a mortgage?

Post by smitcat » Fri Mar 15, 2019 7:20 am

LiterallyIronic wrote:
Fri Mar 15, 2019 7:17 am
dziuniek wrote:
Fri Mar 15, 2019 7:00 am
ponyboy wrote:
Thu Mar 14, 2019 9:59 am
You'll always have a "mortgage."

Property taxes and home insurance. For most, thats $4k+/year. It never goes away. And yes, I know some pay $10k+ for these.
Not that far off from the 10k.... (property tax + insurance)... whoo wheee CT.

Average Property Tax rate in CT was $7,105 in 2017... (Atttom Data) with insurance that's about $8,000 annual - average!!!
Yikes, that's painful. My property tax + homeowners insurance is ~$1,500/year.
Just for a benchmark - there are folks on this board that have property taxes well into the $40K range.
It is all relative.

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Re: Is my *entire* life financed when I have a mortgage?

Post by JoeRetire » Fri Mar 15, 2019 7:27 am

LiterallyIronic wrote:
Thu Mar 14, 2019 11:01 am
But mentally I compare my mortgage to the magical choice that "poofed" the mortgage away. And my mortgage does allow me to save what I want. I even pay extra on the mortgage after saving the amount that I want. And I put even more money aside every month toward my dream car (a DeLorean) and my dream vacation (weeks-long sightseeing trip around Europe). I have more income than I need and I have a mortgage that only makes up 13% of my gross income, so it's not like I'm in a money-tight situation. Yet the mortgage interest is always on the forefront of my mind.
We all get to decide what is more important - to have a "dream car" and a "dream vacation", or to get rid of a "soul-crushing" debt. Sometimes we can't have both.

If I actually had a soul-crushing problem, that would be most important to me. But we each get to decide for ourselves.

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Re: Is my *entire* life financed when I have a mortgage?

Post by goblue100 » Fri Mar 15, 2019 7:33 am

B4Xt3r wrote:
Thu Mar 14, 2019 8:06 pm
goblue100 wrote:
Thu Mar 14, 2019 7:48 am
Do you really want to do nothing but go to work and eat peanut butter and jelly sandwiches until your house is paid for? I'd rather balance a little more life in those years and accept that it will take longer to pay off the house.
No, and I never claimed that I wanted too. I also can't see how your reply sheds light my opening question.
Really? Assuming the answer to the question posed in the title thread is yes, what is the recourse? When someone says
but it puts discretionary purchases in a very harsh light.)
I assume they are talking about living a very spartan life and paying down the mortgage super aggressively. [OT comments removed by admin LadyGeek]
Financial planners are savers. They want us to be 95 percent confident we can finance a 30-year retirement even though there is an 82 percent probability of being dead by then. - Scott Burns

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Re: Is my *entire* life financed when I have a mortgage?

Post by nps » Fri Mar 15, 2019 9:20 am

B4Xt3r wrote:
Fri Mar 15, 2019 7:06 am
So playing with, https://www.bankrate.com/calculators/ma ... lator.aspx, I think that I convinced myself that each marginal purchase does have the effect of borrowing more.
Again, assuming you don't have a mortgage now, each mariginal purchase you make already has the effect of investing less. Does that similarly concern you?

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Re: Is my *entire* life financed when I have a mortgage?

Post by LadyGeek » Fri Mar 15, 2019 9:23 am

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