Tuesday, June 7, 2011

Don't Pay Off Your Mortgage - Say What?

Yeah, I've heard it time and time again. A few days ago I was walking to Safeway to grab some dinner. The meat that I had planned for dinner had spoiled. We waited a day or so too late to cook it, so off to the trash it went. I hate wasting food. (Man, I need to start composting once we move.)

Well, I ran into a neighbor who was outside. He and his girlfriend were heading to his parents' cabin up north. He was telling me how nice and peaceful it was there. I commented on how awesome it was that his family has a place like that for some down time. He proceeded to tell me that his parents' home was paid off, so they took the equity out of it to pay cash for this cabin. Then he said something along the lines of, "Why get rid of a mortgage? If you do, you won't get the tax benefits."

He had a smile on his face, so I just nodded and let him continue on with the story. His girlfriend came out and they headed off, while I continued on my walk to the store. But as I was walking, I couldn't stop thinking about what he had said. And how millions of people feel the same way.

Don't get rid of your mortgage or else you won't be able to claim the tax benefits.

Now I'm not a financial advisor, or an accountant, but in my mind, Dave Ramsey's teachings about living debt free is key in my future plan. It makes sense to me. Keeping a mortgage to right off the interest, doesn't.

It's like paying a dollar to get 33 cents back. It's just not worth it.

Most people don't know that after paying every single payment, you actually paid TWICE as much for your house, if not more. It's just not worth it.

But don't take my word for it. Go to bankrate.com, or any other site with an amortization calculator, and play with your numbers. Do your own research and come to your own conclusion. Heck, it's your money.

I would love to be mortgage free, but I haven't found the time to do it yet. In my eyes, getting another job to pay down the principle each month is the only way I can see to make this happen. But my son is starting kindergarten and that means, he'll start bringing home homework. Right now, I can't see risking his education, or me risking being a mother who isn't around. I've found lots of second jobs, but having them be full-time, would not leave me with any time to sleep. And yes, I have tried several MLMs and that didn't work out for me either. Aside from winning the lottery, a second job is the only answer.

So are you going to delay paying off your mortgage?
If not, how are you increasing your household income to pay it off faster?

1 comment:

  1. We have it set up that we're taking off more than what we originally budgeted but it would be nice 'own' the house sooner.
    Working on a new adventure to hopefully still be able to contribute to my family when we have kids.


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