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Should I payoff my mortgage?

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fw12

Junior Member
What is the name of your state (only U.S. law)? NEVADA

It's the ole "should I pay off my mortgage" again.

I've searched the forum, but everybody's situation is unique.

I'm in the 5th year of a 30yr fixed, at 5.75%

I still owe $83k, and I think I can come up with that sum in a few months.

Property values are taking a nose dive in Las Vegas.

Should I payoff the loan?
 


Farfalla

Member
What is the name of your state (only U.S. law)? NEVADA

It's the ole "should I pay off my mortgage" again.

I've searched the forum, but everybody's situation is unique.

I'm in the 5th year of a 30yr fixed, at 5.75%

I still owe $83k, and I think I can come up with that sum in a few months.

Property values are taking a nose dive in Las Vegas.

Should I payoff the loan?
Sounds like you will be depleting your available cash If you do this. That’s not wise.

Can you make more than 5.75% on your money anywhere else guaranteed?

How much equity do you have in the house?

How much of a tax savings does writing off the home give you annually?

Is the monthly payment hard for you to meet with your current income?

What other assets, investments, debt, etc do you have? (You don't have to answer that here.. don't give us your balance sheet and your income/expense sheets... my point is that knowledge of all of this goes into such a decision.)
 

fw12

Junior Member
Sounds like you will be depleting your available cash If you do this. That’s not wise.
That shouldn't be a problem, since I can build up savings very quickly if I don't have a mortgage to pay. In any event, even if I do decide to pay off the mortgage, I'd have at least some emergency funds first.

Can you make more than 5.75% on your money anywhere else guaranteed?
I'm a bit risk averse in this economy. So the answer is no.

How much equity do you have in the house?
My guess is that I'm upside down. Home values have fallen very fast in Vegas due to high foreclosure rates.

How much of a tax savings does writing off the home give you annually?
You're right. The tax advantage is there. I pay a yearly interest of about $5,500. But wouldn't it be best to pay $0 mortgage interest, than pay the interest upfront, and then hope for some savings on my taxes?

Is the monthly payment hard for you to meet with your current income?

What other assets, investments, debt, etc do you have? (You don't have to answer that here.. don't give us your balance sheet and your income/expense sheets... my point is that knowledge of all of this goes into such a decision.)
My home is my only asset, and only debt. It's just that "I'm debt free" sounds like music to my ears.

I think I'd take dmiller12's advice.

Thank you.
 

Farfalla

Member
....

I think I'd take dmiller12's advice.

Thank you.[/QUOTE]
My post was mostly to just give you an idea of all the factors you need to consider.

Yep, that's the best thing for you to do. Just make sure its not an advisor to is selling mutural funds and other investments on commission. They just might try to get you to put your money in one of those and not give you good advise.
 

nextwife

Senior Member
5.75% is CHEAP money. Do not pay it off, keep the money to invest, deal with emergencies. Run a calculator and see what a loss of the interest deduction does to your taxes.

What you might consider doing is accelerating your amortization, if you have no prepay penalty. Run a calculation and see what paying an extra 100-500 or more every month does to your payoff horizon.
 

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