How much is your mortgage payment (principal and interest only)?

[Fdloans]

1 have a 20-year fixed loan - 2750

Monthly PMT:$1,700.00

Principal $900

Interest $550

Escrow $240

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[sv2007]

What this tells me is that you'd rather definitely pay low interest for a long time than maybe pay modest interest for a medium amount of time.

No, what it should tell you is that I'm a conservative person and would much rather pay a KNOWN , low interest vs a VARIABLE and higher rate.

What is known can be planned much better than what the prime rate will be for the next 30 years (i.e. 30-yr fixed mortgage). Take a look at the 30yr prime rate, if the bad situation happens during its high, we are talking double digits right there.

If you've been reading my posts, you should notice a pattern of very conservative investments but still have fun built into it. I'd never save $ just to have a pile, I save $ today to spend more tomorrow. And being conservative (i.e. planning for the unexpected) means I'll have the tomorrow I planned.

Once mortgage is paid off, an important option for the biggest source of cheap money for most people is also closed.

Frankly, I've not been a lucky guy. None of the startups I joined made much money, and the few job offers I turned down could have made me millions. Lots of financial set backs in my life (wife lost $1m on a company options just because of our tax planning, a $100k law suit early in my life, so many more). I've built my side of wealth (not counting wife's) based on slow-and-steady-wins-the-race strategy. Frankly, I think anybody can do it.

[Bob B.]

$1,100 per month.

[frugalfarmwife]

We have a 15 year mortgage at %2.95, we work with a farm lender and have had a great relationship with them. Monthly payment is $832.51 and on the last payment $690.36 went to principle, $142.15 to interest.

We cover our insurance and taxes separately, they run approx. $436 per month, and this is on 82 acres.

[disneysteve]

We cover our insurance and taxes separately, they run approx. $436 per month, and this is on 82 acres.

Our taxes are $613.39/month on 1/4 acre. If we had to pay at that rate for 82 acres our bill would be over $200,000/month.

Of course it wouldn't actually work that way because the taxes are based on the appraised value of the home, not on vacant land, but I guess that's why there are only a couple of farms left in town.

[frugalfarmwife]

Our taxes are $613.39/month on 1/4 acre. If we had to pay at that rate for 82 acres our bill would be over $200,000/month.

Of course it wouldn't actually work that way because the taxes are based on the appraised value of the home, not on vacant land, but I guess that's why there are only a couple of farms left in town.

I often look at the different areas/taxes/home and land prices and am just amazed at the variations. We have 3 large barns, a shop and an older 2,200 square foot house all on the farm. Most of the land is in what is called CAUV for farm tax, but still our taxes are very minor compared to the rest of the country. For example my brother has a very nice house in a suburb of a large metro area in our state, I'd be surprised if it's even on 1/6th of an acre, beautiful home, and his taxes are more than 3 times mine, and the home valued about the same as my whole farm.

And I was mistaken on the taxes and insurance, I forgot that the number also included our auto insurance (4 vehicles with full coverage and $500 deductible each). Mind you no kids, we're late 40's and early 50's with great driving records. So the monthly taxes and insurance on the farm are $336,

[sv2007]

Our taxes are $613.39/month on 1/4 acre. If we had to pay at that rate for 82 acres our bill would be over $200,000/month.

Of course it wouldn't actually work that way because the taxes are based on the appraised value of the home, not on vacant land, but I guess that's why there are only a couple of farms left in town.

There are normally ag exemptions. More likely it's because the they can sell the land at a good price rather than being forced out due to tax.

Property tax is assessed based on appraisals of market value of the real property, and that includes land (and applies to land w/o improvements). If one looks closely at the yearly tax assessment, she might notice that the house value is decreasing while the land value is increasing.

[tripods68]

I've run many scenarios: keeping a mortgage after retirement or paying off mortgage before retirement. The best solution always, pay off the mortgage before retirement.

Having a low interest aren't always the best solution, or why people should keep a mortgage at retirement. It may work to certain those who are sophisticated in personal finance, but for most aren't sophisticated, it always a better rule to keep.

Why would anyone keep a $1500 mortgage at retirement. That means they have to withdraw more money from their investment to keep this mortgage, when they could have paid it off at age 50 or 55. Now they are retired at 62 years old with 9 more years of mortgage payment. Approaching 70 with RMDs faced with increased health care cost, people will look back "I should have pay off the house Early!

[JoeP]

Principal: 951
Interest: 101
Escrow: 568 (school and town taxes, we pay ins separately)

Do the math...6800 a year in taxes. Gotta love NY.

Only another 16 or so months to go!

[dawnwes]

Our taxes are $613.39/month on 1/4 acre. If we had to pay at that rate for 82 acres our bill would be over $200,000/month.

Of course it wouldn't actually work that way because the taxes are based on the appraised value of the home, not on vacant land, but I guess that's why there are only a couple of farms left in town.

Do you pay according to the size of the lot?

[disneysteve]

Do you pay according to the size of the lot?

We pay based on the appraised value of the house including the land.

[Atretes1]

Primary
Zero

1 rental property
$444