Haha, those are drunk conversations. Can’t be sharing that on this site. I’m offering sensible, responsible goals.This quote is hidden because you are ignoring this member. Show Quote
Leave Canada, live where it's cheap
Live in an RV, Cabin, or Boat
No Debts / >30K Year of Income
No Debts / >50K Year of Income
No Debts / >80K Year of Income
Make Due with Government Pension
Work until I die
Haha, those are drunk conversations. Can’t be sharing that on this site. I’m offering sensible, responsible goals.This quote is hidden because you are ignoring this member. Show Quote
if its that low, the cost of an appraisal would probably be more than the penalty of paying off the remainder of the mortgage after paying a 20% lump sumThis quote is hidden because you are ignoring this member. Show Quote
My penalty was $1043.00 for $143kThis quote is hidden because you are ignoring this member. Show Quote
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Last edited by Sugarphreak; 08-18-2019 at 05:30 PM.
I’m saying setting up the LOC will require an appraisal, while renewing the $100k balance requires nothing... but once he renews, if he crushes it early he would have a penalty... but he can take advantage of the prepayment options to reduce the outstanding principal and make the penalty a little lessThis quote is hidden because you are ignoring this member. Show Quote
I should give you guys the money.
Please don't spend it on hookers and blow.
Once the property is paid for, what's the point of having a HELOC in place?
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
This quote is hidden because you are ignoring this member. Show QuoteThis quote is hidden because you are ignoring this member. Show Quote
Ultracrepidarian
To not have “dead money” floating around... invest your equity using the heloc, write off the interest again gainsThis quote is hidden because you are ignoring this member. Show Quote
Or as my father always liked to say when he set his up “in case you get held for ransom while traveling”
I've used my HELOC to buy vehicles or pay for vacations in the past. I assume it would still have that usefulness even if the mortgage was paid off?
Sounds like I need a HELOC in my life.
This quote is hidden because you are ignoring this member. Show QuoteOnce the house is paid off you just set aside the same amounts each month in something relatively liquid and buy things (vacations, cars, investments) with the cash you've accumulated. People need to get off the credit addiction & way of life. The more you borrow the more you're under the influence and control of external factors, like rising interest rates. There's always a cost to borrow and it's not always financial in nature. I've seen a lot of people's lives dramatically altered by credit decisions and I truly believe that the majority of the general public would be better off with less credit in their lives.This quote is hidden because you are ignoring this member. Show Quote
And methamphetamine...and syphilis
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
But... but leverage! Build an insurance empire!
you aren't wrong Bill. And once the home is paid off I would hope a person would be setting aside some amount monthly in some form of liquid savings. Still. Regardless of it being good, bad or ugly, it sure is handy.
How about a methamphetamine empire? I need a partner though, I sucked at chemistry in high school.This quote is hidden because you are ignoring this member. Show Quote
"Masked Bandit is a gateway drug for frugal spending." - Unknown303
Labs in client’s basements... when they explode profit from increased premiums? Win, winThis quote is hidden because you are ignoring this member. Show Quote
I'll just start a meth lab in some empty space downtown.
This is a corollary to my Average Joe theory on Real Estate Investment. That is: the Average Joe likes RE investment (rental properties, etc), because it is virtually the only access they have to leverage. And then they get MASSIVE leverage (20-1 or 10-1). They think that profit-boosting leverage is "free". You can tell these people because they say things like: "It's awesome, the renters are paying my mortgage!"This quote is hidden because you are ignoring this member. Show Quote
Anyway: NOT paying your mortgage in order to boost investment returns elsewhere is a corollary to this concept: you are maintaining debt/leverage in order to boost returns. Same same.
In both cases people usually don't risk adjust those returns. Either because they prefer to pretend it doesn't exist, or because they don't know how or that they should.
De-leveraging by paying off your mortgage represents a reduction in risk that you must account for in your comparison. (Ironically, it can increase your liquidity risk, but that's another topic).
I generally fall into the "pay off your mortgage faster" camp for most people.
ding ding dingThis quote is hidden because you are ignoring this member. Show Quote
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Last edited by Sugarphreak; 08-18-2019 at 05:30 PM.