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wwotd and why

Old 12-07-2018, 10:28 AM
  #41  
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What kind of tax break are you getting for the interest you pay on the mortgage? Why not pay it off, keep your money in the bank, and let it earn more interest for you?
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Old 12-07-2018, 10:29 AM
  #42  
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Originally Posted by Knooger View Post
If you have a thick ****, there's nothing more to want.
Originally Posted by flange View Post
mine is, but somehow I don't think that's what you mean by have
I think Knoogs wants the full monty.
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Old 12-07-2018, 10:30 AM
  #43  
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Originally Posted by K-Spaz View Post
That's a kick-*** looking doc right there.
Thanks! I choose the IPE for its durability. It should outlast me at this point. I was originally going to let it weather grey but it looks so good I plan on keeping it oiled every year. I will be adding a stainless/cable railing in spring with an IPE top.
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Old 12-07-2018, 10:33 AM
  #44  
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Originally Posted by DJ_Critterus View Post
What kind of tax break are you getting for the interest you pay on the mortgage? Why not pay it off, keep your money in the bank, and let it earn more interest for you?
I am in the top bracket, BUT paying only 4800 bucks in interest doesn't help much at the end of a day. just curious....how can I pay it off AND keep the money in the bank??
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Old 12-07-2018, 10:41 AM
  #45  
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Originally Posted by flange View Post
they need lovin too, but the farm up the street only has holsteins
Just have to alter your stance
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Old 12-07-2018, 10:42 AM
  #46  
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Originally Posted by flange View Post
Thanks! I choose the IPE for its durability. It should outlast me at this point. I was originally going to let it weather grey but it looks so good I plan on keeping it oiled every year. I will be adding a stainless/cable railing in spring with an IPE top.
I'd be oiling that for sure, that looks beautiful. I made the mistake of waiting to treat the roofing on my gazebo this year. I was told the color would stay when I put on this sealing product. It's a cedar shake roof and they told me it would 'brighten' the colors, so my best bet was to let it natural for a few months to weather some, then spray it. Well, up till I sprayed it, it looked like cedar when wet, and had color when dry. Now, it's gray and I'm not real happy about it. I could kick someone square in the nuts for the faux advice.
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Old 12-07-2018, 10:42 AM
  #47  
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Originally Posted by 'Shifter View Post
Just have to alter your stance
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Old 12-07-2018, 10:45 AM
  #48  
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Originally Posted by flange View Post
what would off topic do and why

I earn more in interest each month than I pay, .
how are you getting better than 3.25% in interest? What type of fund
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Old 12-07-2018, 10:48 AM
  #49  
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Originally Posted by K-Spaz View Post
I'd be oiling that for sure, that looks beautiful. I made the mistake of waiting to treat the roofing on my gazebo this year. I was told the color would stay when I put on this sealing product. It's a cedar shake roof and they told me it would 'brighten' the colors, so my best bet was to let it natural for a few months to weather some, then spray it. Well, up till I sprayed it, it looked like cedar when wet, and had color when dry. Now, it's gray and I'm not real happy about it. I could kick someone square in the nuts for the faux advice.
I am pretty sure you can get it back by cleaning it first, then oiling. Do a search on youtube. I believe you use a mixture of Trisodium phosphate (TSP) and water, or specific cleaners and a medium pressure, pressure washer to clean it, then you oil it.
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Old 12-07-2018, 10:52 AM
  #50  
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Originally Posted by flange View Post
What's the matter, couldn't you afford to put decking over the entire surface?

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Old 12-07-2018, 10:54 AM
  #51  
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I'd go with just pay off the mortgage. It sure feels good knowing that the house is paid for.
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Old 12-07-2018, 11:00 AM
  #52  
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Originally Posted by flange View Post
I am in the top bracket, BUT paying only 4800 bucks in interest doesn't help much at the end of a day. just curious....how can I pay it off AND keep the money in the bank??
Is interest you are accruing now paying for the house and leaving you extra $$ after the payments? If so, keep the mortgage.
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Old 12-07-2018, 11:08 AM
  #53  
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Originally Posted by flange View Post
I am pretty sure you can get it back by cleaning it first, then oiling. Do a search on youtube. I believe you use a mixture of Trisodium phosphate (TSP) and water, or specific cleaners and a medium pressure, pressure washer to clean it, then you oil it. https://youtu.be/fqoR0l7zyKs
The stuff I put on already is a wood preservative that is used for bee-hives. For other colors of wood, it seems to leave the color alone. On my roof, I used rainy days to determine when to apply it because it was supposed to resemble the wet look. That might be true for white pine, but it damn sure isn't true for cedar. The stuff I applied gets mixed with water then applied with a garden sprayer.

https://tallearth.com/

Performance wise, it's great stuff. But I wish I'd tested it on scraps before I applied it to the whole gazebo. All that red-cedar look now appears 15 years old. It's ok, but I really wanted that new cedar look.

Originally Posted by dvarapala View Post
What's the matter, couldn't you afford to put decking over the entire surface?
He's gonna finance that last foot of deck, but the loan app hasn't gone through yet.
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Old 12-07-2018, 11:18 AM
  #54  
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Originally Posted by dvarapala View Post
What's the matter, couldn't you afford to put decking over the entire surface?
Haha. NJ, not allowed. they want the ground to be able to soak up water, lol. There are miles of open bay behind me but they are worried about a few hundred square feet of my property. typical dump thinking In that state.
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Old 12-07-2018, 12:52 PM
  #55  
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Originally Posted by snide View Post
But it's not debt if you can make the payments.
Damn I forgot. Thanks for reminding me.
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Old 12-07-2018, 01:40 PM
  #56  
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Originally Posted by NDMIKE88 View Post
Damn I forgot. Thanks for reminding me.
Monkenomics 101...
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Old 12-07-2018, 03:35 PM
  #57  
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I've never met or even heard anyone say they regretted paying their mortgage off.

I've also never had a single moment of regret. Glad we did it.

As a hedge, I did get a HELOC, which sits at zero balance, but is there in case of emergency. I can write a check for $200k at any time, so that money that would have been sitting in the bank or invested, waiting to be paid towards a mortgage, is still available should a need arise.
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Old 12-07-2018, 06:29 PM
  #58  
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Originally Posted by Vetteman Jack View Post
I'd go with just pay off the mortgage. It sure feels good knowing that the house is paid for.
Iím going to agree with this.
Originally Posted by scottycards View Post
I've never met or even heard anyone say they regretted paying their mortgage off.

I've also never had a single moment of regret. Glad we did it.

As a hedge, I did get a HELOC, which sits at zero balance, but is there in case of emergency. I can write a check for $200k at any time, so that money that would have been sitting in the bank or invested, waiting to be paid towards a mortgage, is still available should a need arise.
And this as well.
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Old 12-07-2018, 06:43 PM
  #59  
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Originally Posted by flange View Post
its semi-serious. I have ample cash reserves and if I do it would be paying it off using my end of year bonus money, not anything out of the bank. I am already paying off another note on my beach house which was a significant home equity line which I took at purchase five years ago due to the low rate and my ability to pay it down. I wanted to keep the 30 year note at 750k. I sometimes utilize my cash reserves for large business purchases in lieu of using my commercial line of credit and pay me interest instead of the bank, so the 2% paid by them is not the whole story of earnings. I the bank pays me a shade over 1000 per month in interest and charges me 400 on the mortgage balance.

Edit: I have discussed this with two of my financial advisors and both say keep the debt. My accountant who does all pf my business and personal stuff also says it doesn't really matter, as write off is down to nothing at this point.
I'm sure that the forum world-class experts will be along shortly to tell me for the hundredth time why I am completely wrong, and probably severely retarded, but here is the way I think of it:

I manage my portfolio of investments by having target percentages invested in "Stocks", "Bonds", and "Real Estate". I view mortgages as bonds that I am effectively short. So, if I have excess cash, and I want to put it into "Bonds" because that percentage is low, I will put it into the highest yielding bond investment available to me at that time. Right now, the highest return I can get on bonds in which I am interested is about 2.9% (10 year Treasuries). The mortgage I have on my 2nd investment property is at 3.625%. It's not an exact comparison, because I don't pay state tax on the Treasury, but the return to pre-paying my mortgage is still higher on a net basis than the Treasury. Therefore, I get a higher return buying back some of the bonds I am short, than going longer on the 10 year notes. This assumes that your regular cash cushions and what not are in good shape, which it sounds like they are.

Of course, if your equities weighting is below where you want it to be, and/or your bonds investments are already overweighted, it makes sense to put any excess funds into equities.
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Old 12-07-2018, 07:12 PM
  #60  
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Originally Posted by PKguitar View Post
I'm sure that the forum world-class experts will be along shortly to tell me for the hundredth time why I am completely wrong, and probably severely retarded, but here is the way I think of it:

I manage my portfolio of investments by having target percentages invested in "Stocks", "Bonds", and "Real Estate". I view mortgages as bonds that I am effectively short. So, if I have excess cash, and I want to put it into "Bonds" because that percentage is low, I will put it into the highest yielding bond investment available to me at that time. Right now, the highest return I can get on bonds in which I am interested is about 2.9% (10 year Treasuries). The mortgage I have on my 2nd investment property is at 3.625%. It's not an exact comparison, because I don't pay state tax on the Treasury, but the return to pre-paying my mortgage is still higher on a net basis than the Treasury. Therefore, I get a higher return buying back some of the bonds I am short, than going longer on the 10 year notes. This assumes that your regular cash cushions and what not are in good shape, which it sounds like they are.

Of course, if your equities weighting is below where you want it to be, and/or your bonds investments are already overweighted, it makes sense to put any excess funds into equities.
none of us know his exact situation and it is complicated more so than just looking at percentages. The caveat I would say that needs considered in your plan above is that he tends to buy and sell stuff frequently, and if he decides to go get another mortgage, not only will the mortgage rate be higher but he will have closing costs to pay on it. That blows all the percentages out of the water versus letting the money sit where it's at for the short-term. Will one or two years worth of Interest makeup for the closing costs of acquiring another mortgage? At much higher percentage I might add.

he's the only person who can answer his question. But your idea does work for somebody like me who doesn't buy another house every eight weeks.
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