When you buy a house one of the goals you should have is too pay it off. Yes I think that should be your goal. Too many Michigan home owners right now are paying the price for using their house as a bank.
Homeowners used the house to pay off credit cards, take trips, pay off college education, pay for weddings, pay for cars. Houses were being used as a bank. I know one guy that built a house 18 years ago for $180,000. He had a $120,000 mortgage on it. By the time he lost it he had run up the mortgage up to $330,000. He couldn’t afford the payment anymore. He lived off the house. He let it go into foreclosure. Now he is 53 years old with no house and won’t be able to buy a house until 55 years old.
Sad. He will be living in an apartment or have a mortgage payment when he is retired. Having a mortgage payment when you are retired is not what you want to do. I think all the financial planners that spout that garbage are stupid.
Less debt is better! Having no mortgage is the way to go. So it pays to pay off your mortgage early. So make it your plan to pay off your mortgage.
So my thoughts are:
- pay your payments on time
- don’t take out home equity loans
- Don’t use your home as a bank
- If you have extra money put some extra on your house each month or year.
Again these are just my thoughts. It’s your house and whatever you do is fine.
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