Does it make sense to pay off the house?
estreya
16 years ago
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kkny
16 years agoRelated Discussions
Does this house plan make sense?
Comments (1)I am not exactly sure what you would like us to comment on. It looks pretty good. My main thing might be the hvac and its location/size. That closet might be tight for them to install and to have maintenance in the future. Also I question how they are going to run their duct work, especially with your big vault through the middle. That might be a challenge for them....See MoreTo pay off or not to pay off mortgage - pls check my #'s?
Comments (38)Hi graywings, I started reading this thread without noting the dates the posts were written. Dave, I don't want to put you on the spot, but I am wondering how the accounts you spoke of in 2007, the 72c Guaranteed Savings accounts (equity-indexed fixed life contract, or annuity contract) have weathered over the last three years. Heh... you can "put me on the spot" in this regard *ANY* time ;~) Both the equity indexed life & annuity products have *VERY* strongly outperformed the unprotected stock index markets over the same periods of time (since 2007. In fact, going back from today to almost as far as you'd like.) Their design is that they capture & credit any annual upside (to a maximum gain,) and lock that amount permanently to your credit. On any years with a downside, your account sits tight with no losses at all (guaranteed by the insured backings of the company reserves and the state's guarantee association (each state's equivalent of a regional "FDIC" in essence.) If you put $100,000 in the S&P 500 for the last decade, you'd actually be holding a bit LESS than $100,000 today (not deducting the tax or management fees that may also be applied.) The same $100,000 in an insured indexing account would be approximately $211,768, net of everything (taxes & fees,) *OR* about an average annual tax-free rate of return of 7.06% Alternatively, those folks who decided to take their working capital OUT of growth, and put it into their real estate equity, have been double-stung; Not only have they gained nothing toward retirement, their equity values have decayed from 10-30% (depending on the area.) The clients who've been with us the last 3-5 years have been rather relieved, ecstatic, and pleasantly bored, all at the same time. Its a very nice financial reality to provide. Cheers, Dave Donhoff Leverage Planner (PS. to re-paraphrase celticmoon; When everyone else's retirement nest-egg is drowning deep underwater... its kinda nice to be riding on the back of a "duck" ;~)...See Morelow interest rates: Any reason to pay off home?
Comments (9)Just a heads up (with no political comment intended and please no political comments in response). One of the things proposed in the debt ceiling negotiation are lower rates but with a reduction or maybe elimination of certain deductions including the home mortgage interest deduction. I have no idea whether that shakes out or not, but If it does happen, it would favor paying off home mortgages earlier. Now, regardless of what happens, my opinion is that in general -- and there are always exceptions -- paying extra towards a home mortgage when you can is good fiscal discipline even though when you run the numbers their may be a slight advantage the other way. The only things that probably should come first, other than are higher interest rate debt ( if any) emergency reserves and retirement savings. As others have said, a debt free home is very liberating. It's also an emotional disincentive to overextending by trying to keep up with the jones. It's easy to rationalize moving into something more expensive if you've got a mortgage and moving up will only cost x dollars a month more, it's much harder to go from no mortgage even to a small one. Now this is where exceptions come in especially depending on where you are in life like a growing family that really need more room, but generally I think folks are happier with a mortgage free home, than one that may be slightly nicer/bigger. Kymike does make a good point on flexibility. That's why when we bought a second home, after our primary was paid and the kid was out of college and with 45 percent down, we went with a 30 year mortgage, but ran a second amortization schedule for a ten year payoff. We're ahead of the ten year track slightly, but have the comfort of knowing that if bad times hit we will be okay. This also disciplined us not to over extend inthe first place and will have it paid for 4-5 years prior to retirement. It's also kept us more frugal on other nonessentials but those are sacrifices we can live with....See MoreDoes a whole house fan make sense in NJ?
Comments (6)I have a recommendation for whole-house fans, and that is to go with the ones made by Triangle Engineering of Arkansas (made in the USA!). These things move more air than any other brand. As an example: the 36" belt-drive model sold at Lowes & Home Depot moves 6,900 CFM on its highest speed. The 36" one that Triangle makes moves 10,600 CFM. I just put one of these in last week and am so taken with it that I'm evangelizing for Triangle now. These things are much higher quality than the other brands too -- these are made with very heavy-gauge solid welded steel (as opposed to the thin, flimsy metal - often aluminum - that other brands use). They use a very solid motor made by Emerson, the best of the top three motor-making companies (the other two being Fasco and A.O. Smith). They come pre-framed on a wood frame for installation, AND they have sponge-rubber noise-dampening material between the fan and the frame, so they are much quieter than the other brands. Also, Triangle holds a patent on an automatic belt-tensioning system these things use, so you don't have to worry about getting the tension right when you install the fan (or in the years thereafter as the belt loosens up). Also, they come in more sizes than the other companies -- from 24" all the way up to 48" blade diameter (which moves a ridiculously whopping amount of air; no one else makes one that big). They're sold online at Southern Tool amongst other places that ship nationwide, so they're available wherever you live. Also, Triangle re-brands some of these as a private label for Dayton, which is the "store brand" of Grainger - so if you have a Grainger store near you (check your phone book or their website), you can buy one there. I will say this, though - Grainger/Dayton makes their own shutters, and those shutters are much better than the one Triangle makes. Triangle makes great fans, but crappy shutters. Luckily, they're sold separately -- so buy a Triangle fan and Dayton shutters; money can't buy better products. They also re-brand some for a company out in San Francisco called "Fanman" (a/k/a "Delta Breeze"). A word to the wise -- these fans move a lot of air, so make sure to install at least the recommended minimum amount of attic exhaust space (gable vents, soffit vents, roof vents, some combination thereof, whatever works for you) - if you don't have enough, the fan will operate at reduced capacity, and there will be a backpressure which will cause the shutters to rattle when the fan is in operation (any time you hear whole-house fan shutters rattling, you know there isn't enough exhaust space). Oh, and one other thing -- only buy a belt-drive whole-house fan, don't EVER buy a direct-drive model...the direct-drive models are at least five times louder, they sound like standing on an airport runway next to an old prop plane getting ready to take off. Several of the dedicated whole-house fan installing companies have chosen to use Triangle fans; that should tell you something. These companies want satisfied customers, so they use Triangle and only Triangle. Refer to http://www.trianglefans.com/wholehouse.html for more info Here is a link that might be useful: Triangle whole-house fans...See Moreduluthinbloomz4
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Jonesy