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Would it be better to always have a mortgage payment (for tax purposes) or to pay off your mortgage loan?

by k.simpson814 from Pine Grove, California. Oct 7th 2016 Reply

William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,726 contributions

Every financial adviser out there will absolutely tell you your far better off having a mortgage than having a paid for home.. right now, if you have really good credit scores, you can borrow for under 4%.. possibly under 3% depending on the loan product you apply for.. yet, some of the most consistent investments like gold, mutual funds, bonds, etc can net 5% to 15% or even more.. and financial advisers will always tell you that if you can borrow for less than you can make on investments, then your far better off keeping the money in the bank and borrow. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 NMLS# 226347

Oct 10th 2016
Larry Gray (lgray_312_247)
#594 ranked lender in California - 1,139 contributions

It is definitely a "numbers' analysis and personal preference. When I do a mortgage planning consultation for someone in your situation I look at income, savings and the overall financial picture. We determine what the tax benefits versus what you could do with the money you take out of the home. I agree with William that there are definitely benefits in retaining some sort of mortgage loan and using the "cash out" towards sound investing. On the other hand, if you look at the numbers and you only wish to have the most conservative of investments to put your money into, you may decide you like the idea of no mortgage loan to pay. That is not such a bad situation to have. If you are short on liquid assets then it is often better to get some equity out.

Oct 11th 2016
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