Why It Pays To Never Pay Off Your Mortgage

Paulxo

And Discuss

http://money.uk.msn.com/mortgages/mortgageguide/article.aspx?cp-documentid=4758898

setmefree2

"The belief that if you owe money on something, it’s not really ’yours’."Quote

This isn't a belief - it's a truth. Until you have paid of your mortgage you don't own your home, someone else can sell it from under you (and these days that can happen in as little as 3 to 4 months). Why risk what you don't actually have. Surely, when you own your home then you can start taking risks with whatever money you have left over. I know nothing of this author but he is obviously more of a risk taker than me and maybe he's just prepared to put more effort in. In the end, paying off your mortgage an is easy risk-free way of earning/saving money. The stock market's in turmoil, nobody knows where the sub-prime saga is going to end - I'm best of out of it. We're all exposed enough to the vagaries of the market because of our pensions.....

....well you did ask me to discuss and that's my opinion;)

InMyDreams

Paulxo wrote: »

And Discuss

Well the first sentence says it all, really...

"This article is about a risky investment strategy that is not for everyone."

I'm not sure there's really anything new here and it's often debated, unfortunately quite heatedly. I guess the missing word from the head-line is *might*; "Why it *might* pay... which is going to be a bigger deal for some than others depending on their very individual circumstances.

setmefree2

"Abbey has become the first UK High Street bank to raise its mortgage rates as a direct result of the continuing turmoil in the financial markets." BBC News 13.39 Uk Time

I wish I didn't have a mortgage:o

MarkyMarkD

Abbey's move only affects new borrowers, not existing ones. It's not as big a deal as the press is making out, IMHO.

ryansace

Rather than getting a mortgage, if that is his veiw point, then why doesnt he rent? He wont have to pay interest or capital, and will save a killing on bills. I rent for £500 a month, can't aford much more, but with a mortgage that would be the interest payment.

Surely i could save the money from not paying the mortgage and invest as suggested?

I dont know, im not really up on these issues, but thats what im going to do in 10 years unless house prices take a drmatic decline- either that or move to america where houses are actually affordable..

Thats just my 2 cents tho

Paulxo

He's hoping for a capital gain on top, with his mortgage amount staying constant.