Dave Ramsey, "Pay Off Mortgage" Money Makeover - 7/10

[styleomatic]

Yep, it must be great to pay off your mortgage early. However, do you really own your home if you pay property taxes? It seems to me the state/county are the real owners.

Don't think so? Try not paying it.

[mymoore0526]

@ Brianstacyn If you like to give your money away to the bank then don't take his advice. Just imagine the peace of mine you will have when you don't have to make a house payment. I had my house payed off once and that took so much of my worry away. I just don't like the fact that every month I was paying the banks almost 500 bucks in interest. I rather put that 500 bucks towards my retirement.

[brianstacync]

this fool's advice is the perfect way to keep you in the poor house. You must play the game that wall st and The Fed forces you to play or you are getting killed by inflation. 4% is damn near free, especially on a depreciating asset like a house is now. let the bank take the risk on the property...NOT YOU!

[Canisius19]

Sorry but I find it very difficult to take financial advice from a guy who had to file for bankruptcy. If you live in a high tax state why on earth would you want to lose the interest deduction, second, why would I want to give extra money back to the bank mortgage rates are about 4 percent, you could take that extra cash invest at a much higher rate then after if you want to whack out the mortgage you could. Your house may be paid but you have zero cash left, sorry dont agree with it

[paulsballsify]

@Canisius19 First, paying off your mortgage (or debt in general) is guaranteeing a growth investment (not paying interest on your income). There are very few guarantees in this life, take them when you can. As for deductions, you can look up the math. The total amount of interest you pay the bank ends up being a lot more than you get back in deductions from the government, you basically say you'll pay the bank 10k to save 2k from the government.

[scoobydo]

The borrower is slave to the lender. That's sooooo true. Compound interest is your friend when you're a saver, and it's your enemy as a borrower.

[sethhersch]

"100% of foreclosures occur on home with mortgages."

Dave is so classic.

[willbotya]

@sethhersch

Detailed, in depth research to arrive at the above statement,haha

[Scrabbler27]

The UK's Martin Lewis is good with financial troubles. Plz look him up!

[rhdtv2002]

is there any tax advantage when you pay early the house?

[redstripe555]

@rhdtv2002 There is no tax advantage, just like there is no debt disadvantage

[fijiandevil]

@rhdtv2002 hi read dave's book Total Money Make Over it tells you why it doesnt make sense to own mortgage and if you can get the write off by giving to charity. good luck

[scoobydo]

@rhdtv2002 Focusing on the tax deduction of mortgage payments is making a big mistake in my opinion. You're only get a deduction on the interest portion of your payments, the rest of the interest is lost. And you end up servicing that debt for many more years, so over that time you have been paying more and more interest. The ADVANTAGE of paying of early is that you don't have to pay the interest in the first place. You get to keep it all for yourself or invest it elsewhere.

[whatorwellsaid]

Thanks god for putting Dave Ramsey in my life...I'm a college student and I feel my life will be better now that I know everything he teaches I WANNA BE WEIRD!

[bonejazz]

The dislike was a mistake. Stupid keyboards!!! This very informative. Thanks for posting.

Peace & Much Success,

Andre Hayward

[skewlboypin]

Canadians are in America, just not in the USA

[XFVY4]

@skewlboypin Canadians don't consider themselves to be Americans though.

[jebenn23]

I'm 23, I am paying cash for a house. I think if I stay with my $250 a month rent and drive beaters and shop for deals on food and clothes I can do it.

[ladytly]

lol. 1 hundred percent of foreclosures are on homes with mortgages. lol indepth reseearch

[ir10031981]

sometimes I wonder what's the point of being debt free including the house when you're gonna live alone because you're single and have no children? sure on one hand it's cool to owe nothing, weird! but if you're like me you go to bed somewhat depressed wishing you had a spouse and even a child to share your life with.

[TheChromelover]

@ir10031981

I understand where you are coming from and I'd like to help you. May I recommend the book - "Positive Solitude" by Rae Andre. It is not very expensive and can be bought on amazon. I live alone too, but my perspective towards solitude (or loneliness whatever you choose to call !!) has changed tremendously and I can say with conviction that I lead a meaningful, contented and never yearn for a partner. And NO..I don't get any monetary benefits by promoting this book.

[tormozat]

No i'am not kidding you actually i am very Sirius If you think your Disability Insurance Really pays your mortgage You are the one thats kidding .insurance companies always find a way not to pay you .they will force you to find a minimum wage job even if you are on a wheel chair so they don't have to pay you .

If you had try to pay extra towards your mortgage five years ago today you would have lost it all because house values have dropped so much .

[tormozat]

Very bad advise from dave ramsey .paying your mortgage early with extera payments is very risky if you pay 90% of your mortgage and get sick and miss few payments bank will foreclose and sell your house to one of their own liquidators for few dollars and come after you for more money .put that money aside and save until you can make one big payment and buy the house .

[AcousticHills]

@tormozat Are you kidding me?? paying your house off early is the only way to go! IF you listen to what Dave teaches, he says BEFORE you start to dump extra cash on your mortgage to pay it off early, you have to have an emergency fund of 3-6 MONTHS, which would take care of that issue you brought up. PLUS if you were that sick to take 2 months off work...common... You would also have long term health insurance which would pay you 90% or so of your wages every week... Thats also what Dave teaches

[onionofdeath]

Gold, IMO, is fine, if you actually POSSES it in your person. If you buy gold, and all you get is some sort of certificate, than how is that certificate any good if our currency does collapse? Who will trade you something for that piece of paper?

[Anothersidetwo]

I don't own gold for yo skeptics out there, but thanks to Dave, I own my home free and clear, have no debt, am self insured, and loving life. So, get over it you gold lovers.

[y2ktube]

I'm in Dave Ramsey's FPU right now. That said, he's totally off on the Gold question. He says: "Gold has only gone up in the past 7 years" Well yeah, duh ! That's the point,; to have paid off a house in the past 5 years wasted you some 50% of your investment. Gold on the other hand, has DOUBLED your investment. With the "fiat" money we're currently printing, real money will still continue it's uptrend. Real Estate will have to go up a WHOPPING 200% just to catch up to 11/2010 levels.

[y2ktube]

Remember "real money" In 1965, 30 ounces of gold would have bought you a new VW, but today, 30 ounces of gold will get you a New Benz. $1,500 today (the price of the 1965 VW) only buys you one Benz wheel ! (Not even chromed)

[danielgreengifting]

dave ramsey love ya man. have u ever heard of cashgifting

retirenowgiftingdotcom

[ridehardmc]

@FortNikitaBullion That may be true about gold but how many people buy it ? and take the chance of it not going up. The price of gold pretty much stayed around the same price for years. and in that time you could have paid your mortgage down. most people do not have a 3% mortgage rate. Most I would say from 5-8%. So the smart thing would be to pay off mortgage and buy some silver/cold. Oh dont forget the 20-30 % income tax you will pay on your gold when you sell it take that out of the profit.

[FortNikitaBullion]

@vention4wh Yes, but you still have taxes, maintenence and upkeep, etc, you're also exposed to movements in home prices, and you've tied up your money which can be invested elsewhere. You can sign a lease to keep the rent from being raised, but this gives you less flexibility to move --- its a tradeoff. But I really think it's a renter's market at the moment.

[vention4wh]

@FortNikitaBullion

Possibly, possibly not. For the last 11 years I paid less than I paid for my old apartment, so I was ahead of the game all 11 years. Now my mortgage is paid off. I still have to pay 100 a month in property tax and 297 in condo maintenance fees but that's only 400 a month. I could work at walmart and still make ends meet with expenses that low.

I just did a check and renting an apartment like my condo would set me back 1100 a month minimum, probably more like 1200. I'm happy.

[vention4wh]

YA BABY! I DID IT! WOO HOO!!!!!!

This morning I woke up, a couple hours before my alarm. I couldn't get back to sleep and it was for a reason! Today is the Day that I pay off my mortgage!!! Remember when you were a kid on Christmas morning? Remember how you always woke up early and you were so excited? Well It's been about 35 years since I felt that but today the feeling was back! I logged onto my bank account and sent the final payment! Let me tell ya, It's felt great!

[gigie555]

Dave Ramsey might sound good, but anyone who missed the gold price increasing 500% in the last 9 years, and calls gold a "dumb" investment, should

not be giving investment advice. If I paid off my $100,000 debt in 2001, I would be debt free. If on the other hand I had "saved" $100,000 in gold (which is really inflation proof money) I would have $500,000 and after paying off the $100,000 plus interest (about $50,000) I would have $350,000 to spend. Not so bright are you Dave?

[XCritonX]

Where I live the government jacks up your taxes if you pay off your house. It is always worse for us to pay it off than keep the debt. Talk about the government creating perverse incentives.

[buzznews1]

where do you live ???

[XCritonX]

@buzznews1 Portugal in the United Europe Socialist Republic (UESR). The tax structure is designed to keep the poor as poor as possible.

[frugalwife]

This sounds like a great plan! I hope to do it soon.

[musicgeek3]

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[ward185]

@frugalwife I noticed you made this comment 2 years ago.Did you follow this plan?And if so how did it go?

[frugalwife]

@ward185 We did pay off the house last year. It has been a blessing not to have a house note. I had major surgery last year and it was wonderful not to worry about a mortgage while recovering as well as knowing if anything had happened, my husband wouldn't have to worry about it either. We made less money this year, and it has helped to have less bills. Thanks for asking.

[rational1776]

@frugalwife Well it's 3 years later. Did you do the plan? If so, which baby step are you on?