Comments on: Should you Pre-Pay your Mortgage?

By: Suzie | Roof Repairs

Suzie | Roof Repairs — Mon, 16 Nov 2009 05:11:20 +0000

Thanks for a great post, the information was really useful and thank you to Drew that was a great explanation of the difference between those to, and you explained them in easy terms. I think I would like to financially free, but it is going to take me awhile to get there,

By: Tamir

Tamir — Wed, 29 Jul 2009 09:14:32 +0000

Steve, Thanks for sharing this good info post with us.

By: Mark

Mark — Mon, 27 Jul 2009 02:40:34 +0000

Will I have to pay capitol gains if my mortgage company refinances me at fair market value ( 412K worth 227K) ?

By: Justin

Justin — Sun, 22 Feb 2009 14:55:07 +0000

Steve,

Can you send me your calculations of 200,000K Net Interest?

I ran the same numbers you did and came out with 122,000. Trying to see where I messed up. You have a very good point though.

-Justin

By: Steve Heideman

Steve Heideman — Wed, 18 Feb 2009 06:12:11 +0000

Shawn, Yes. That is exactly what I am saying. If there is 0% appreciation, then the property still loses value do to the forces of inflation and loses relative value due to fluctuations between the dollar and other currencies around the world. Even if appreciation were positive, there could still be a nominal loss in value if the rate of inflation is greater than the rate of appreciation. Make sense? Steve Heideman’s last blog post: Comment on What’s Ahead For Mortgage Rates after the Stimulus Plan? by Steve Heideman

By: Shawn McGinness

Shawn McGinness — Fri, 13 Feb 2009 02:41:58 +0000

A lot of folks have written on this question – whether it makes fiscal sense to pay off your mortgage – but, this is the best I’ve read on the subject. Thanks for the great post.
In the first point, you say that money sitting in home equity is actually losing value due to currency devaluation and inflation; does this statement assume 0% appreciation? The real gain would be (home appreciation percentage) minus (inflation percentage), correct?

By: Drew Sygit

Drew Sygit — Tue, 10 Feb 2009 23:00:15 +0000

A great question to ask people is:

“What’s the difference between being debt free and financially free?”.

Most people confuse the two.

Financial Freedom means not having to worry about working for income to pay your expenses.

It can be attained in one of two ways:

1. Passive investments that generate enough consistent cashflow to cover your expenses.
2. A large “nest egg” that can be liquidated over time to cover your expenses.

Drew