I have a mortgage with $115,000 due at 6.3 percent. I can pay it off but do not know if i should. what is the rule of thumb in doing that and what are the tax implications. i am new here and not astute financially. thanks.

How are you financially with everything else? How are you paying this off? Do you have an emergency fund set up? Just curious. You must have discipline to pay this off. If you can pay it off and take your mortgage payment and invest it. I would set it up to automatically be taken out and put into an IRA or ROTH IRA, then I would pay it off immediately.

Remember, now that you won’t have the write off, you will have to pay taxes at the end of the year, so prepare for that. The amount of taxes that you will pay will be a lot less than the interest you were paying on the loan, so you will still be ahead of the game! Great going! I have a mortgage with $115,000 due at 6.3 percent. I can pay it off but do not know if i should. what is the rule of thumb in doing that and what are the tax implications.

You must have some idea of what you’re doing. I’d love to be able to pay off my mortgage (about $140K). If I had that money, I’d pay it off today.

Hi! I do believe the interest on a mortgage can be claimed on taxes. [(Disclaimer: I am not a tax expert. Consult your tax preparer for more details.) I put that in there because I got yelled at once about “false information” yatta yatta.] It also helps build credit. I would keep the mortgage and just pay a little extra off each month.

Especially if you are planning for retirement. Just have it paid off by then is what I’d do. Also maybe put some improvements into the house instead. Just in case you decide to move when you are in retirement. It would be like banking the money. Anyway, those are mainly just my thoughts.

Depending on the terms left in the mortgage, he could be paying twice the mortgage (or more) by the time it’s paid off. Instead, pay off the mortgage and put the money earmarked for payments in a tax-free interest fund. I thought the point of this group is to reduce debt.

I agree paying off debt is important…but if you dont have things in place before that you could be like alot of retirees who have paid for houses with no money..Thats why reverse mortgages are so popular with older folks..And reverse mortgages are a rip off.. You have to be smart in everything you do. Also thats’ why Dave Ramsey doesnt have the house being paid off until step #6. read more here – http://www.daveramsey.com/home/.

Paying OFF your mortgage is always better than taking the tax benefit. All you have to do to see this is figure out how much you are actually writing off at tax time, subtract that from what you’ve paid over the course of the year in mortgage payments and you’ll see that you are paying a bank money just to have some tax benefit.

I would suggest paying it off and if you are concerned about tax benefits, put more money into your 401K or IRA. Or, you could always use that extra money to buy yourself a rental home and increase your income. Just make sure that you can cover mortgage, taxes, and insurance on that next home.

I stick with my original response. If I could get rid of $140K in debt by paying off my mortgage this afternoon, I would do it. Dave Ramsey can afford to give any advice he wishes. He’s worth millions.

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Hello everyone, I joined in hopes of some advice, I am 50,000 dollars in debt for various reasons and I have really good credit. The problem is I can no longer carry this burden around. Not getting the balance down because as soon as extra money comes in something else happens. I am thinking of joining Freedom Debt Relief they supposed to settle debts. or bankruptcy. I just don’t know what to do. As of right now my bills are current but I have been off from work for the last six weeks for surgery and exhausted my vacation time. Just can’t deal with it over my head. I have three children and I want to be better for them and teach them but how can I start over?

Most bankruptcy lawyers will give you a free consultation. Why not check into that and explain your situation. Sometimes the fresh start one can get from bankruptcy protection is the best solution. You must put yourself and your family first. Once you are back on your feet you can repay creditors if you choose, but you under no legal obligation to once your case is discharged. Everyone can start over again… one day at a time!

I know how you feel. My husband and I have been carrying around the same amount of debt as you are and we were keeping current on things and had really good credit, but this past winter my husband’s job slowed extremely down where he took almost a 50% paycut and we just couldn’t keep up with the minimum payments. Our good credit went down the tubes rather fast and we are now filing bankruptcy. Honestly even if my husband’s job wouldn’t have slowed down, I wish we would have looked into bankruptcy along time ago.

Even though we were staying current on the bills, we were never getting ahead. We were making the minimum payments only to turn around and use the credit card and quick cash loans (from trusted and well-known websites like ErgLoans) to buy food, gas, etc… Because all of the money was spent on the payments. It was a vicious cycle and we were never going to get anywhere at that rate. With how far we got in the hole, I feel that 20 years from now if we would have kept the way we were going we would have probably been living the same exact way that we were because I just never could see an end to the debt.

At least this way with filing for bankruptcy we are getting a fresh start. Granted we will have a harder time buying a larger home down the road and purchasing cars with decent interest rates, but to me I’m willing to deal with that in order to get out from this heavy amount of debt that we have been carrying for so many years. The debt was consuming me and my life and it was just time to move forward. I can’t really advise you on what route is best for you. Just know you’re not alone Good luck with your decision.

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