Senate Passes Sweeping Republican Tax Overhaul Bill

[kidicarus13]

Your mortgage. No mortgage = no interest paid. It amazes me how many people believe they have 30 years to pay off a mortgage.

People do have 30 years to pay of the standard mortgage. What's the rush? Mortgage APR is between 3% and 4% plus writing off mortgage interest on taxes. Maybe the homeowner is making 10% a year on an investment so their money is working harder for them there. With the attractive interest rates on homes and vehicles these days, it's not always wise to pay off your $300,000 mortgage or $20,000 vehicle. It's not 1950, debt is not always a bad thing. Ask Trump, he leveraged debt to build his empire.

[Jer]

Sure. Let me just get the printing press up and running.

It's obviously not that simple but there are some simple steps you can take to rapidly dealing with a mortgage. It's a bit off topic for this thread but you mentioned it so my response was an attempt at humor addressing the topic.

[Jer]

U.S. government can do it. So can you.

Exactly! (I'd put lol but it's quite infuriating how they devalue our currency by recklessly printing as much as they need to fill the bill for the day)

[Jer]

People do have 30 years to pay of the standard mortgage. What's the rush? Mortgage APR is between 3% and 4% plus writing off mortgage interest on taxes. Maybe the homeowner is making 10% a year on an investment so their money is working harder for them there. With the attractive interest rates on homes and vehicles these days, it's not always wise to pay off your $300,000 mortgage or $20,000 vehicle. It's not 1950, debt is not always a bad thing. Ask Trump, he leveraged debt to build his empire.

Spending $1,000 to claim $100 (or $200, or $300, etc.) on taxes doesn't make sense. Regardless of interest rate it's always ways to NOT take out a loan at all. One example of leveraging doesn't not a rule make. I sang that same tune a decade ago and it bit me. Hard. Even if it's 0% that's monthly income that can go towards investments. Taking loans out to buy shit you don't need makes zero financial sense but fuels the economy so they continue indoctrinating us to believe that's how you get ahead in this economy.

Drive through a trailer park and see how many Cadillacs you see. People paying around $1,000/mo for transportation when their tab for shelter is probably $400-$500 in a sketchy neighborhood & work minimum wage collecting welfare. (extreme example but it exists and illustrates my point) No wonder people can never 'get ahead' in this society.

[Great-Kazoo]

Your mortgage. No mortgage = no interest paid. It amazes me how many people believe they have 30 years to pay off a mortgage.

No mortgage means for some of us, no deductions. Kids grown, medical no where (sometimes) the current ins rate, fixed income. That mortgage deduction helps.

BUT.............. we also have , outside the house, zero debt.

[Irving]

Even if I had no taxes deducted from my pay, and automagically devoted all of it to paying the mortgage, it would take me 3.5 years to end at a $0 balance.

Sounds like you're making pretty good money, congrats! Don't get too upset by Jer's suggestion, you're closer to the mind set of leaving the rat race than most, but he doesn't know that. Turning people on to the idea of having life options that are outside of what society tells you to do can be life changing. It's always good to have a muse. In other words, his suggestion was not meant to frustrate, even though it is certainly out of place in this particular thread.

[Irving]

Drive through a trailer park and see how many Cadillacs you see. People paying around $1,000/mo for transportation when their tab for shelter is probably $400-$500 in a sketchy neighborhood & work minimum wage collecting welfare. (extreme example but it exists and illustrates my point) No wonder people can never 'get ahead' in this society.

Try more like $800-$1,000 per month for lot rent alone.

[Zundfolge]

Your mortgage. No mortgage = no interest paid. It amazes me how many people believe they have 30 years to pay off a mortgage.

How many people actually ever pay off their 30 year mortgage? Most people move on average every 5 years, that means they pay for 5 years and then reset the clock.

[Great-Kazoo]

How many people actually ever pay off their 30 year mortgage? Most people move on average every 5 years, that means they pay for 5 years and then reset the clock.

End of year for us, again.

[Jer]

How many people actually ever pay off their 30 year mortgage? Most people move on average every 5 years, that means they pay for 5 years and then reset the clock.

Lots of people take handouts from the government that don't need them... that doesn't make it right.

Just because lots of people move every 5 years and/or take out a new note every 5 years doesn't make it wise financially.

In your scenario that 5 years paid on a 30 year mortgage will end up being nearly 100% interest the way it's amortized. Sure you can write some of that off (depending on income situation) but crunch the numbers on what interest is on 60 months @ roughly $2k per month and you end up with a pretty crazy number that you are paying to "rent" a home. Sure you can get some appreciation but you can also lose a lot of money in value too. Factor in realtor fees and you've got a whole lot of large #'s that aren't in your favor.

Don't even get me started on people who go out and refinance to "save money"on their mortgage ....eesh.

It's already been mentioned though that this is off topic. I referenced a post earlier with a short statement that was largely tongue-in-cheek that has spun off into a conversation that should be contained within a thread topic all it's own.

Just know that you don't HAVE to pay on a mortgage for 30 years and "getting the write-off" certainly isn't worth the true cost of money.