From: "JJ" 
Newsgroups: misc.invest.real-estate
Subject: Re: Should one pay off one'e home mortgage ?
Date: Sun, 3 Apr 2005 20:21:56 -0400

Why does it have to be narrowed down to those two extremes (uncomfortable 
with debt = no debt, comfortable with debt = borrow all you can and invest 
it).  People should not be borrowing money just to invest it.

IMHO, it depends on how much you have in liquid (or fairly liquid) assets 
after paying off the mortgage, and your comfort level with what will be left 
after the payoff.

Say the mortgage is 5.5% (and effectively less than that if the interest can 
be deducted) - if in the future you end up needing the cash used to pay off 
the mortgage, you most likely are going to have to borrow it at a higher 
rate.  And if you need it due to a situation such as prolonged unemployment, 
you may not even be able to borrow it backl (you won't get a loan if you 
don't have income to pay it back).

So it's tough to answer without knowing their entire financial situation.


"John A. Weeks III"  wrote in message 
news:john-CDFF67.15025003042005@ip-lcc.supernews.net...
> In article <1112551542.145485.38370@o13g2000cwo.googlegroups.com>,
> avacohen100@yahoo.com wrote:
>
>> Should one pay off one'e home mortgage ?
>
> It depends on your comfort level with debt.  If you are
> uncomfortable with debt, then pay off the house.  For me,
> debt makes me physically ill, so I don't play that game
> when I can avoid it.  If you are comfortable with debt,
> then you should borrow all you can and invest it.
>
> At any rate, it is good to plan to be free and clear by
> the time you retire.  You don't want to be making house
> or rent payments on social security.  Those checks do not
> go very far these days, and who knows how much longer those
> checks will still be available.
>
> -john-
>
> -- 
> ======================================================================
> John A. Weeks III           952-432-2708            john@johnweeks.com
> Newave Communications                         http://www.johnweeks.com
> ======================================================================