Comments on: Pay it down, or ING it? http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/ Personal finance, commentary, and spending less the easy way Sat, 07 Nov 2009 00:26:19 -0400 http://wordpress.org/?v=2.8.5 hourly 1 By: mark john http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-101458 mark john Sat, 03 Nov 2007 15:08:32 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-101458 If you can obtain a higher savings rate than the mortgage rate go for that instead. If you can obtain a higher savings rate than the mortgage rate go for that instead.

]]> By: eric http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-44050 eric Sun, 15 Apr 2007 09:00:45 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-44050 Loans on homes can be so low that to pay them off makes little sense, but what can be even lower is some student loans. I held on to mine as long as I could. Loans on homes can be so low that to pay them off makes little sense, but what can be even lower is some student loans. I held on to mine as long as I could.

]]> By: ian http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-33827 ian Sat, 24 Feb 2007 10:12:36 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-33827 Pay off the mortgage and forget the savings account especially if you are a higher rate tax payer. Go for an offset mortgage. Pay off the mortgage and forget the savings account especially if you are a higher rate tax payer. Go for an offset mortgage.

]]> By: mbhunter http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-3417 mbhunter Sun, 18 Jun 2006 00:34:18 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-3417 Thanks for all of your comments! I agree that it makes your funds illiquid to pay down your mortgage faster, but if you have a sufficient emergency fund, then it's still a good thing to do to reduce debt. Thanks for all of your comments! I agree that it makes your funds illiquid to pay down your mortgage faster, but if you have a sufficient emergency fund, then it’s still a good thing to do to reduce debt.

]]> By: Mortgage broker http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-3197 Mortgage broker Thu, 15 Jun 2006 09:35:06 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-3197 Great article! Great article!

]]> By: Julie Ali http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-3158 Julie Ali Wed, 14 Jun 2006 16:23:00 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-3158 I agree that an emergency savings account is important (at least $5000) but once this money is in the emergency account, I would stil suggest that you put the $100/month towards paying down the mortgage. If you plan to live in your house for the rest of your life or until you downsize (perhaps in 15 years time), then mortgage paydown, in my opinion is the best way to go. If you need more money than what you have in the emergency account, it is relatively easy to get a part time job on weekends and evenings after your regular job is done (at least in Alberta right now) to raise extra cash. While you might get more in other investments, for me at least, the peace of mind in knowing that my mortgage will be paid off within the next 10 years is priceless. Pay off your mortgage in 10 years or less and you will be in great financial shape. Pay it off in 15 years and that is still ok. Any longer than that and you are a slave to a bank. I agree that an emergency savings account is important (at least $5000) but once this money is in the emergency account, I would stil suggest that you put the $100/month towards paying down the mortgage. If you plan to live in your house for the rest of your life or until you downsize (perhaps in 15 years time), then mortgage paydown, in my opinion is the best way to go. If you need more money than what you have in the emergency account, it is relatively easy to get a part time job on weekends and evenings after your regular job is done (at least in Alberta right now) to raise extra cash.

While you might get more in other investments, for me at least, the peace of mind in knowing that my mortgage will be paid off within the next 10 years is priceless.

Pay off your mortgage in 10 years or less and you will be in great financial shape. Pay it off in 15 years and that is still ok. Any longer than that and you are a slave to a bank.

]]> By: fivecentnickel.com http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-2942 fivecentnickel.com Sun, 11 Jun 2006 23:57:21 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-2942 <strong>Weekly Roundup - 06/09/06...</strong> Here’s a quick look at a few things from the MoneyBlogNetwork (and beyond) that caught my eye over the past week… MightyBargainHunter asks if one should pay down their mortgage or sock extra savings away in their ING Direct account (click... Weekly Roundup – 06/09/06…

Here’s a quick look at a few things from the MoneyBlogNetwork (and beyond) that caught my eye over the past week…

MightyBargainHunter asks if one should pay down their mortgage or sock extra savings away in their ING Direct account (click…

]]> By: GaryP http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-2846 GaryP Sun, 11 Jun 2006 04:19:26 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-2846 Without an emergency fund you could loose your home if you had an emergency. If you send an extra $100 a month in for your mortgage for 5 years, then loose your job - you still owe next months payment. How long will it be before they foreclose - even though you have paid ahead? It is much better to have money set aside in case of emergencies than to have all your money tied up in your home. GaryP http://money-and-investing.dogberrypatch.com/ Without an emergency fund you could loose your home if you had an emergency. If you send an extra $100 a month in for your mortgage for 5 years, then loose your job – you still owe next months payment. How long will it be before they foreclose – even though you have paid ahead?

It is much better to have money set aside in case of emergencies than to have all your money tied up in your home.

GaryP
http://money-and-investing.dogberrypatch.com/

]]> By: Mike B. http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-2815 Mike B. Fri, 09 Jun 2006 22:04:32 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-2815 One thing to note is that a CD at ING is at 5.25 for 1 or 2 years right now. So if your interest rate is that low, it's pretty much a no-brainer to buy CDs every month (there is only a $1 min) and you'd be better off. So, while not as liquid as a savings account, it would be more liquid than just paying off the mortgage and with a better rate. One thing to note is that a CD at ING is at 5.25 for 1 or 2 years right now. So if your interest rate is that low, it’s pretty much a no-brainer to buy CDs every month (there is only a $1 min) and you’d be better off. So, while not as liquid as a savings account, it would be more liquid than just paying off the mortgage and with a better rate.

]]> By: E. Uriel Acevedo http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/comment-page-1/#comment-2814 E. Uriel Acevedo Fri, 09 Jun 2006 21:26:04 +0000 http://www.mightybargainhunter.com/2006/06/08/pay-it-down-or-ing-it/#comment-2814 Here's some food for thought when contemplating the aformentioned topic: Facts about the Equity in YOUR HOME... 1) No growth— your home is going to appreciate at the exact same rate whether you own it free and clear... or you're mortgaged to the hilt. Your home won't be worth more when you go to sell it, just because you've paid your mortgage down, or paid it off. Which means... the equity in your home isn't working for you at all! 2) No tax break—the tax break you get is for mortgage interest you pay—the less interest you pay, the lower your tax break 3) No liquidity—the only way you can get your money out is to sell your home, or refinance or take out a home equity loan—and if you lose your job or become disabled, you probably won't qualify for a loan—your money is locked up in your home 4) No guarantees—real estate markets go up, but they also go down—you have no guarantee the market will be up when you're ready to sell or how long it will take to sell If I told you I had an investment that had: No growth, no tax breaks, no liquidity and no guarantees- how quick would you sign-up for it? We must avoid at all cost the state of "Under-capitalization" in which most Americans live. To find out more you may visit my lens at: http://www.squidoo.com/bankonyourself Here’s some food for thought when contemplating the aformentioned topic:

Facts about the Equity in YOUR HOME…

1) No growth— your home is going to
appreciate at the exact same rate whether
you own it free and clear… or you’re
mortgaged to the hilt. Your home won’t
be worth more when you go to sell it, just
because you’ve paid your mortgage down,
or paid it off. Which means… the equity
in your home isn’t working for you at all!

2) No tax break—the tax break you get
is for mortgage interest you pay—the less
interest you pay, the lower your tax break

3) No liquidity—the only way you can
get your money out is to sell your home,
or refinance or take out a home equity
loan—and if you lose your job or become
disabled, you probably won’t qualify for a
loan—your money is locked up in your
home

4) No guarantees—real estate markets
go up, but they also go down—you have
no guarantee the market will be up when
you’re ready to sell or how long it will
take to sell

If I told you I had an investment that had: No growth, no tax breaks, no liquidity and no guarantees- how quick would you sign-up for it?

We must avoid at all cost the state of “Under-capitalization” in which most Americans live.

To find out more you may visit my lens at:
http://www.squidoo.com/bankonyourself

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