Posted: 3/21/2015 11:56:25 PM EDT
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I owe 117,000.00 on my house. Should I pay it off before i retire next year or just keep paying monthly for the next ten years 6 months?
Doing the math say's I'll save 17,000.00. 3.75 is my rate. |
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Isn't the IRS disallowing the mortgage interest tax-deduction these days? Seems I heard something to that effect. I claimed it for the taxes I did last month. OP, pay it off. There are no guarantees in life, and owning your home free and clear is ideal for retirement. |
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Agree. There is nothing better than to be free from the cruel master which is debt. Quoted:
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IMO, if you can do so, pay it off. No investment these days is guaranteed to pay 4%+, and just before retirement is not the time to take risks. Agree. There is nothing better than to be free from the cruel master which is debt. As long as there's property tax you are never truly free. |
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As long as there's property tax you are never truly free. Quoted:
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IMO, if you can do so, pay it off. No investment these days is guaranteed to pay 4%+, and just before retirement is not the time to take risks. Agree. There is nothing better than to be free from the cruel master which is debt. As long as there's property tax you are never truly free. ^^^^ this It's always a great idea to be free and clear on the house, but there are a ton of pretty safe investments that yeild well over 3.5%, depending of course on your individual position I would put the money to work and make a few percent and take the write off. Just my crappy .02 |
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Rough calculations
$117,000 if you get 4% from a top rated CA state municipal bond will be approximately $4,500 annually tax free. Ten years will earn $45,000. Your mortgage interest will shrink rapidly as you are on your final leg, assuming 30 year note. If it were me I would check with my accountant/tax advisor if the interest deduction is significant enough to keep the deduction. If yes, I would invest the money, take the 4% muni tax free income and claim the mortgage deduction until you hit that spot on the curve where it's insignificant. Why leave thousands of dollars of interest deductions on the table and let Uncle Sam and Moonbean Brown take your money? |
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Quoted:
I claimed it for the taxes I did last month. OP, pay it off. There are no guarantees in life, and owning your home free and clear is ideal for retirement. Quoted:
Quoted:
Isn't the IRS disallowing the mortgage interest tax-deduction these days? Seems I heard something to that effect. I claimed it for the taxes I did last month. OP, pay it off. There are no guarantees in life, and owning your home free and clear is ideal for retirement. ^ |
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Pay it off.
There's no guarantee that your health or a myriad of other things won't go south, and having a paid for home is a huge asset, financially and especially peace of mind. Get that out of the way. Take the $17K you saved in interest payments and invest it. |