I am an idiot

[nick__45]

I took out a big mortgage, a very big mortgage. While I am capable of paying twice that amount and it is a excellent loan at a 30-years-fixed with a 4.99% rate, I should have gone for a 15-years-fixed and put down more than 20%. Instead of being financially savy, I opted for the standard loan term with 20% down and keep a large sum of money in saving account. Fortunately, I was smart enough to not buy point, which I knew would be stupid and wasteful. Why pay for something that was calculated for a full term and end up loosing it at refinance or early-payment?

Now I am debating whether to down my mortgage or buy a piece of land with the money I have. If I opt for the later, it would be a cash deal with no loan term so I am not raising my debt ceiling and over-leverage myself. Additionally, it will be a farm land so I don't have to pay high property tax when my such tax is already levied against my primary residence so I don't want to pay more than my share of the social burden of keeping the road paved, schools opened, etc. I don't even have kids in school age so most of my taxes are paying for illegals and lazies to enjoy already.

Anyone else ever fell into this situation and what is normally a best course of action to fight off inflation and keep one debt-free the soonest. I have 29 years left on my 30-years loan and I can pay it off in 10 years if I prepaid a lump sump and increase my monthly payment in. I do plan to be here in 10 years or at least keep the residence for 10 more years. The place is in good shape and great neighborhood; therefore, I could have it paid off just right when the market recover and be able to sell it to move to a dream location.

By the way, mortgage interest write off is a scam so I don't have to worry about going back to standard deduction.

[Joan.of.the.Arch]

Originally Posted by nick__45

I don't even have kids in school age so most of my taxes are paying for illegals and lazies to enjoy already.

I do find the title of your post appropriate.

[nick__45]

Originally Posted by Joan.of.the.Arch

I do find the title of your post appropriate.

Isn't it bad form to misquote people and flame them for that?

[disneysteve]

Originally Posted by nick__45

I am debating whether to down my mortgage or buy a piece of land with the money I have.

what is normally a best course of action to fight off inflation and keep one debt-free the soonest.

If your goal is to be debt-free the soonest, prepay the mortgage. Buying a plot of farmland will do nothing to help you get debt-free.

Originally Posted by Joan.of.the.Arch

I do find the title of your post appropriate.

Very funny, Joan.

[Joan.of.the.Arch]

Sorry. In the same minute (12:16) that you posted your question to me, I noticed the way the quote got scrambled and I fixed it. It was simply a matter of not having deleted a portion of a sentence which you wrote earlier in your post than the phrase which I have now presented as you wrote it.

[nick__45]

I hate paying taxes because I know I get less from it than people who pay little to no taxes. Like all the parks and services people on welfare enjoy while I am at work.

[nick__45]

dsteve,

Had I known 18 months ago what I know now, I would have wait and have enough to pay cash for a house. But I never owned a house before that and actually didn't take the time to figure out the actual saving benefits of owning a house. It seems like everyone and their brothers boast the tax write-off benefit but no-one really talk about, and those that do don't talk about it loudly enough, about that fact that the tax write-off benefit isn't forever as the goal isn't to rent the mortgage to keep the banks afloat the entire 30 years.

While I understood the concept that 10 dollars a day for a new car loan for 8 years doesn't mean it only costs 10 dollars each day to own a brand new car for each of day for 8 straight year, I somehow fail to carry such understanding over to the mortgage interest scam.

I just got off the phone with the bank and will pay half of the current balance tomorrow. I like the idea of not having to worry about loosing the house in an event that I can't have the good job I am having now. Additionally, not having money in the bank would lead of less work of having to tell myself that I don't need to buy this or that just because I can afford to pay cash for it.

[thekid]

Damn those parks.


It's not an "interest scam", it's interest on a loaned amount. Your options are to either prepay (make a 5% after tax return -ie. the saved interest) or invest your savings elsewhere (if you anticipate greater than a 5% after tax return).

[NJDebbie]

I wish we had a "like" button. Joan.of.the.Ark I agree.

[LivingAlmostLarge]

me too..joan...lol. Damn those police men, fire fighters, and librarians.

[cypher1]

Originally Posted by LivingAlmostLarge

me too..joan...lol. Damn those police men, fire fighters, and librarians.

I never liked roads/construction work either!