Mortgage, to be or not to be?

to be or not to be?

  • Yes

    Votes: 14 73.7%
  • No

    Votes: 5 26.3%

  • Total voters
    19

RaymondG

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State care won’t allow old people to be homeless. They can be put into housing care.
Also, in my country if you can’t afford a mortgage (salary assessment required) you join a state funded house. After a few years in your home paying rent and you prove to be good tenants, you are given the option to buy the house from the state at a reasonable fee. No interest or mortgage rather a portion of your rent is payed towards the house. After 25 years, the house is signed into your name and is yours to do as you wish, sell it, keep it.

If you can’t afford a mortgage it’s human rights for the government to provide one for you. They won’t tell you that though.
So my advice to the old couple who never had a mortgage in your question is this. Go to your local council and tell them you need a roof over your head. They will provide a way either by supporting high rents or giving you a house. It’s law and a human right to be provided a roof over your head. Their your government and are responsible for you. Besides, have you ever looked into your birth certificate and how it’s worth money??

Governments around the world give a head count of their population ( census )
Each country is awarded money by the central banks of their continent ( mine is Europe )
The government are payed for you
That’s why they give welfare and state homes to those who need them.
The workforce pays off their debt in taxes
The amount of people needing welfare is little in comparison to the workforce
The government can take huge salaries and why is that???
Because what their payed for you and how much they give out is nothing in comparison
Thanks, I see nothing wrong with your plan for after retirement housing.
 
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Jonathan Leo

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So what you are saying it that the "unfortunate man" would be in the same situation as if he had rented in the first place, correct? Except he was able to lower his taxable income during the entire time he paid the mortgage, as opposed to if he had rented from the beginning....which does nothing for tax relief. Seems like this guy would still have come out on top, since the mortgage he was paying, may have been less than rent at the time.....And he did not have any "terrible Landlord" stories because he was his own landlord....
A mortgage should not carry the penalty of losing your home. It’s the only reason why I condone a mortgage
Sure, there has to be protection to ensure people don’t take the mick and steal houses from the banks.
That’s why I believe if you pay your cash deposit of 20% of the value and are financially assessed to show you are working and not some drug dealer, you should be given the house. If you can’t pay your mortgage you should be brought before a judge not to lose your house but for the bank and client to come to a fair agreement based on finances. If your in breach of that judgment you face jail.
Mortgages put huge pressure on the family to keep paying for the house. Most people with fresh mortgages don’t socialize, eat properly, and sacrifice some comforts of the house, the very thing your working your ass off to pay for
Again, my two cents
 
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miamited

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Let me try to explain this to where you will realize you are wrong and brainwashed.
On a 250K loan at 6% on a 30 year fixed mortgage you will have paid a total of 360 payments for a total of $539,595.00. The interest alone is $289,595.00. Now add in monthly home owner expenses at a conservative $500 a month. That's a grand total of $720,000 over a thirty year period. Lets say the market is up and this home is now worth $400,000 that is a $320,000 LOSS. THAT IS A LIABILITY. Lets say the market is down when said person needs to sell. Its even worse then. Even taking out monthly expenses after 30 years its still a $140,000 LOSS. Like I said, assets bring in money and liability's cost money. The whole banking system is a scam, avoid it at all costs.

Hi AofD,

Let me see if I can do the same for you. If you rent a home with a value of $250,000, your monthly rent will likely be about $2,000/month based on a standard value to rent ration of .08. If you rent that home for 30 years you will have paid somebody (you seem to have a strong distaste for paying someone interest and that's ok) $720,000. You'll walk away at the end of that 30 years with nothing. If, on the other hand you bought the home and paid out $720,000 in interest and repairs, at the end of the 30 years you can sell the home for likely more than you paid for it as you yourself have agreed. You sell it using your $400,000 sales price minus a $24,000. commission and you walk away with $376,000 in your pocket. Now, walking away with $376,000 in your pocket isn't going to make you rich by any stretch of the imagination, but...

If you stay in the house, all you have to pay after paying the mortgage (and very few people actually carry a mortgage out for its full 30 year payoff and so a buyer isn't really going to pay $289,000 in interest over the life of the loan. Most people in 10-15 years earn enough money to retire their mortgage much earlier than the amortization schedule works out.) but, if you stay in your home after paying off the mortgage, all you have to pay are taxes, insurance if you want to, and make necessary repairs. At this point the buyer is head over heels in a better financial position than the poor guy still paying his monthly rent month after month after month after year after year after year ad nauseum until he dies.

You somehow keep forgetting that we all have to live somewhere. We all have to pay somebody for a roof over our head.

You're welcome to avoid banks at all costs if you like. Personally, I've always found banks to be helpful as far as financial goals, but they do have to make money just like my local Walmart and Publix supermarket. They make their money by charging interest and other fees. Walmart and Publix make their money by charging an amount over and above what they pay for the goods that they sell you. Friend, every business is in the business of making money. I don't begrudge any business that ability, and so long as I'm wise in my spending, Walmart helps me to have the 'things' I want to have around the house. Publix provides me the food I put on my table so that I can eat every day (and snack). My bank provides me the capital that I need to buy things of greater value that allow me the opportunity to have a roof over my head.

BTW, after you've paid the landlord the $720,000 for living in his house for 30 years, you've paid off his mortgage and you still have to pay him rent every month if you want to keep the key to his front door. You're welcome to go with whichever plan suits you best.

God bless,
In Christ, ted
 
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Jonathan Leo

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I was calling it my own immediately. I owed but it was my house. I was mortgage free at 39.
That’s nice bro and thank God your fortunate enough to be in that position, but there are people who are unfortunate and end up losing their houses because of financial difficulty. I said in another post that the penalty for not being able to pay your mortgage due to financial difficulties should not be the taken of your house
 
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Willie T

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A mortgage is NOT an asset. A home is an asset... one that is going to cost you to maintain its value. The mortgage is an albatross around your neck. It will cost you at least 3 times the value of the house by the time you get it paid off. The supposed "tax credit" is a joke in comparison to buying a house for cash.
 
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RaymondG

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A mortgage is NOT an asset. A home is an asset... one that is going to cost you to maintain its value. The mortgage is am albatross around your neck. It will cost you at least 3 times the value of the house by the time you get it paid off. The supposed "tax credit" is a joke in comparison to buying a house for cash.
Just so happens that Renting for 30 years will cost you 3 times the value of a house as well......also with a joke of a tax credit (no tax credit) , and nothing that you can sell at the end.
 
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MoneyGuy

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A mortgage is NOT an asset. A home is an asset... one that is going to cost you to maintain its value. The mortgage is am albatross around your neck. It will cost you at least 3 times the value of the house by the time you get it paid off. The supposed "tax credit" is a joke in comparison to buying a house for cash.
What about paying a similar amount or more over those years and not owning anything when you're done?
 
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lismore

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Everyone I've spoken to seems to think that a mortgage is a good investment for a Christians

Hi Willing-heart. A mortgage can seem good especially when compared to the otherwise lifelong necessity of rent. As the bible says 'The Boundary lines have fallen for me in pleasant places, surely I have a delightful inheritance'. Once you own your own place there is no more rent and no-one can evict you from your own home. With renting you're never free. God Bless :)
 
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Ancient of Days

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Hi AofD,

Let me see if I can do the same for you. If you rent a home with a value of $250,000, your monthly rent will likely be about $2,000/month based on a standard value to rent ration of .08. If you rent that home for 30 years you will have paid somebody (you seem to have a strong distaste for paying someone interest and that's ok) $720,000. You'll walk away at the end of that 30 years with nothing. If, on the other hand you bought the home and paid out $720,000 in interest and repairs, at the end of the 30 years you can sell the home for likely more than you paid for it as you yourself have agreed. You sell it using your $400,000 sales price minus a $24,000. commission and you walk away with $376,000 in your pocket. Now, walking away with $376,000 in your pocket isn't going to make you rich by any stretch of the imagination, but...

If you stay in the house, all you have to pay after paying the mortgage (and very few people actually carry a mortgage out for its full 30 year payoff and so a buyer isn't really going to pay $289,000 in interest over the life of the loan. Most people in 10-15 years earn enough money to retire their mortgage much earlier than the amortization schedule works out.) but, if you stay in your home after paying off the mortgage, all you have to pay are taxes, insurance if you want to, and make necessary repairs. At this point the buyer is head over heels in a better financial position than the poor guy still paying his monthly rent month after month after month after year after year after year ad nauseum until he dies.

You somehow keep forgetting that we all have to live somewhere. We all have to pay somebody for a roof over our head.

You're welcome to avoid banks at all costs if you like. Personally, I've always found banks to be helpful as far as financial goals, but they do have to make money just like my local Walmart and Publix supermarket. They make their money by charging interest and other fees. Walmart and Publix make their money by charging an amount over and above what they pay for the goods that they sell you. Friend, every business is in the business of making money. I don't begrudge any business that ability, and so long as I'm wise in my spending, Walmart helps me to have the 'things' I want to have around the house. Publix provides me the food I put on my table so that I can eat every day (and snack). My bank provides me the capital that I need to buy things of greater value that allow me the opportunity to have a roof over my head.

BTW, after you've paid the landlord the $720,000 for living in his house for 30 years, you've paid off his mortgage and you still have to pay him rent every month if you want to keep the key to his front door. You're welcome to go with whichever plan suits you best.

God bless,
In Christ, ted

Using a comparison of owning a home vs. renting and coming to a conclusion based upon that comparison has absolutely nothing to do with my original statement that a home is not an asset and that it's a liability. So based upon your logic, if you give me $750,000 today and in 30 years I give you back $350,000 - somehow, that is considered an asset? I would call that a $400,000 loss which is a liability. Again, anything that continually costs money to operate and doesn't generate revenue is a liability.

And why would someone rent a home at $2000 a month when they could rent a two bedroom apt. for $1000 a month. At the end of 30 years that would be over $320,000 in their pocket which could be invested along the way(making interest) while your money is tied up with the bank. Homes are money pits, I don't care how you slice it.
 
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Willie T

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What about paying a similar amount or more over those years and not owning anything when you're done?
Of course, I doubt there is anyone who could argue that renting is a wise expenditure of your money.
 
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miamited

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Using a comparison of owning a home vs. renting and coming to a conclusion based upon that comparison has absolutely nothing to do with my original statement that a home is not an asset and that it's a liability. So based upon your logic, if you give me $750,000 today and in 30 years I give you back $350,000 - somehow, that is considered an asset? I would call that a $400,000 loss which is a liability. Again, anything that continually costs money to operate and doesn't generate revenue is a liability.

And why would someone rent a home at $2000 a month when they could rent a two bedroom apt. for $1000 a month. At the end of 30 years that would be over $320,000 in their pocket which could be invested along the way(making interest) while your money is tied up with the bank. Homes are money pits, I don't care how you slice it.

Hi AofD,

Look you've obviously decided that your explanation works for you. I think that each man should be decided in their mind and let their yes be yes and their no be no. What you don't seem to be able to comprehend is that every financial guide that you will ever use to determine your net worth is going to include your principle residence, and for that matter any second or third homes that you might own, as an asset. The equity in that asset will be the difference between what it's worth and what you still owe on it. You are free to call it whatever you'd like.

I have owned my homes since I was about 30 and I've always ended up better than any renter that I know of, financially. Today I'm 62, retired at 50 and it costs me about $2,000/year to live in my home plus any repairs or improvements I might make. It's a five bedroom 3 bath home on 1.75 acres in a beautiful little town and a beautiful little neighborhood in that town. It's a very stable neighborhood. The last person to move into one of the homes within sight of my house was over 5 years ago.

Because I bought my home and paid the mean ole' usurious banker his interest,(and actually I didn't. Because I had bought and sold homes before, I was able to pay cash for the $300,000 home I'm in now.)I now get to live pretty cheap. It was a good trade for my money. The home I bought before this one, I paid $205,000 for and paid that mean old usurious banker his due and sold that home 10 years later for $625,000. I took just a part of that $625,000 of completely tax free money and paid cash for the home I'm in now. Yes, I would actually thank that mean ole' usurious banker for giving me the mortgage on my previous home. I also paid the mortgage off on that previous home before I sold it and so I got $625,000, minus real estate commission, completely tax free.

So, if anyone is interested in financial freedom---buy your home. Put as much money down as you can, but buy your home. Then work to pay it off as quickly as you can.

God bless you,
In Christ, ted
 
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Haipule

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When we are younger and make more and more income it makes sense, tax wise, to increase your mortgage dept, by buying more expensive properties to stay ahead of the tax burden. However, when you want to start to slow down and enjoy more time, your large mortgage WILL become a gilded gage!

Also, if interest rates lower and property values go up, you will be offered by every lender to refinance your property, lower your payments and take cash out. Well sure, lower your interest rate and payments by refinancing but, DON'T TAKE CASH OUT!

That is unless you are going to invent that money into a business or, income producing property.

The ones that took that sucker offer prior to 9/29/2008, and some more than once, lost their homes and many filed for bankruptcy.
 
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nanookadenord

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Some day my credit will be good enough and wage high enough to own my own home. Then I can get out of this renters hell that I live in where I am subject to their rules and may lose my dog because new owners came in and they now have a dangerous breed list where there wasn't one previously. Half my dog is on the list as he is half husky.

Just don't know when that day will be because EMT's don't make much and I don't want to be a Paramedic or nurse.
 
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RaymondG

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Some day my credit will be good enough and wage high enough to own my own home. Then I can get out of this renters hell that I live in where I am subject to their rules and may lose my dog because new owners came in and they now have a dangerous breed list where there wasn't one previously. Half my dog is on the list as he is half husky.

Just don't know when that day will be because EMT's don't make much and I don't want to be a Paramedic or nurse.
For you it is not possible....but for God nothing is impossible. You can have exactly what you want, by asking your Father for it and stepping out the way.......
 
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GUANO

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This is true, it’s dead money but so is a mortgage if the unfortunate happens.
I have a friend that took out a mortgage for 250k
Years gone by and he went through a divorce. Life fell apart. The wife moved into a council house and he couldn’t afford to pay the mortgage. The guy had payed 170k towards the mortgage. The bank wanted their money. He couldn’t get the money. The bank took the house.
Where is his 170k???.
The bank wouldn’t remortgage the house for the remaining balance. Instead they took his house and sold it else where. The bank mind you are 170k richer and that cash was worked hard for whereas the bank just created an imaginary 250k out of thin air.
He never saw a penny of that mortgage but the bank saw plenty of green.
What a joke
ouch
 
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