Should You Pay Off Your Mortgage Loan?

By
Real Estate Agent with RE/MAX Gold DRE# 01437147

Back in the "old days", it was the 'American Dream' to not only buy a home, but also to actually pay off that debt.

There were actually "Note-burning" parties.  You would gather all your friends and family around so they could watch you burn your mortgage note papers once you paid off your loan.  I've heard from many people over the years that attended those parties and how exciting it was for the host.

It seems that no one ever pays off their mortgage these days.  Is it because of the amount of the loan, or the fact that no one stays in any one home long enough like families used to?  I would say it's a combination of both.

If you're one of the few that are in a situation that gives you the option of paying off your mortgage because you're nearing the end of the loan term or if you've come into some money and you could now afford to just pay off your mortgage bill and have that awesome feeling of not writing that nasty old loan payment each and every month, then here is an article with some information that might give you some insight as to what decision would be best in your situation...READ ARTICLE HERE.

Also, here's an old Archie Bunker video clip from his "Mortgage Burning Party".

I'd love to know if you've ever paid off a mortgage and if you are glad you did or regret it.  Leave a comment or shoot me an email.

Comments (6)

Michael Kitsch
Coldwell Banker - Katy, TX
Procrastinate in the decision long enough and the decision will be made for you.
Feb 24, 2011 02:40 PM
Bridget "Mortgage Mama" McGee
SWBC Mortgage 410-960-2061 - Baltimore, MD
Maryland Mortgage Mama NMLS#196068

Randy,  I have actually had this question asked of me several times in the last few weeks.  Just like what the old lady wears, my answer is "Depends".  As with most major (and minor) decisions the experts opinions vary widely. 

I wonder if the tax credit for mortgage interest goes away if we will start burning those mortgages again?

Bridget "Maryland Mortgage Mama" McGee

Feb 24, 2011 02:40 PM
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Randy.  Great question.

Here in Florida, aka "Bankruptcy Heaven", the question is a No-Brainer.   Excepting your Mortgage, your Property Tax, Mechanics' Liens that you incurred, and possibly IRS violations, RICO or other major crimes, you CANNOT lose your home because of failure to pay your Debts.*

Pay off your Mortage, burn it up.   For the rest of your life, you only need to pay your Property Taxes and Insurance.   You can owe VISA and Student Loans and countless other Debts; they cannot touch your house if you fail to pay (unless you gave them a Lien on your House).

--- Some Floridians shield their financial assets by purchasing solid silver or solid gold faucets, door handles, drawer pulls, etc. which become FIXTURES and therefore become part of the Real Estate, which is protected under Florida Homestead Law.*

 

*The above is a General Statement, not intended as Legal Advice; see an Attorney or other Qualified Professional for Tax or Legal Advice.

Feb 24, 2011 03:15 PM
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

Hey Cheryl, as for procrastination: If it weren't for the last minute, I wouldn't get anything done.  :-)

 

Bridget, I love your "Depends" usage.  I think I'll have to remeber to use it next time.  Ha!

 

Fred, I think if I go to Florida anytime soon, I'll be looking to grab a few knobs while there. LOL!

Feb 24, 2011 04:55 PM
Jack Mossman - The Nines Team at Keller Williams in Stockton
The Nines Team At Keller Williams - Stockton, CA
The Nines Team at Keller Williams in Stockton

Randy - When are we going to Florida?  It would seem that we will have to ship those knobs back ... if we pay over wight baggage rates ... there go the profits!

Feb 26, 2011 03:16 PM
Randy Elliott
RE/MAX Gold - Lodi, CA
REALTOR : Lodi / Stockton, CA

Hey Jack, we could always just melt the gold, make jewelry, and wear it all home on the plane. 

Feb 27, 2011 06:48 AM

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