Why the Guy Who Paid Off His Mortgage in 3 Years Isn't as Smart as You Think - Real Estate News and Advice - realtor.com
OK, I must disagree with this article by a lot.. I'm sharing to get the conversation going but I have yet to see anyone who didn't win big by paying off their mortgage. The argument put forward is that by having a mortgage you will increase your credit score. In truth a credit score is a debt score, it is the consumers ability to re-pay debt. Like life insurance, if they call it what it is, no one would want it. This is straight out of Dave Ramsey. They also say that by keeping the mortgage you can focus more on your retirement. Again a false argument. For almost everyone your biggest asset is your income stream. By paying off debt and refocusing your income stream on investment, in almost every case you will be many many dollars ahead. The other argument I get about paying off the mortgage is that you will lose your mortgage interest tax deduction. True, however the last time I checked the deduction for charitable giving was the same as for mortgage interest. Wouldn't you rather give the money to your church or favorite charity instead of the bank?
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You’ve gotta hand it to Sean Cooper: In a mere three years, this Toronto homeowner made epic sacrifices to pay off a $255,000 mortgage on his $425,000 house. His reason: “For a lot of people, their mortgage is like a life sentence,” the 30-year-old explained to the press. “I just wanted to not have a mortgage hanging over my head.”