Skip to main content

Posts

Showing posts from May, 2011

Why I Don't Want to Pay Off My Mortgage

When I downsized into 1200 square feet from 2500 by selling my home, a lot of new questions popped up.  Rent vs. Buy my next living space? If buy, then how much mortgage?  How much down payment? How many years to pay off the mortgage? I did rent for a while, then I bought, so that answered one of the burning issues.  (And I saved money renting!)   Now I'm working toward financial freedom and keep fighting the urge to pay off my mortgage.   Reasons to pay off: Great peace of mind (no mortgage payment - yeah! Sense of accomplishment Pride of ownership Hmmm....wait a minute...these are mostly emotional reasons, aren't they?  Then I began reading Ric Edelman's best-seller " The Truth About Money."    He cites 11 great reasons to carry a big ole' mortgage.  What??  At least two of the elevent reasons have to do with tax benefit -- which I disagree with.  Figure your interest payment each month ($350*12 for me = $4,200).  My mortgage tax deduction doesn