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pay off home early or invest? poll

what should i do

  • pay off loan first

  • take 2nd mortgage for land

  • idiot, dont ever own more then one property at a time

Results are only viewable after voting.
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M

mizzou

Diamond Member
Im going to be in an obscure position of needing to spend $ wisely. I desperately want to secure a retirement zone (vacant / undeveloped land) but the miser in me wants al debt paid off first and then pay before taking on a second mortgage, even if i an comfortably afford it.

Depending on what i but it could be 60 acres or a few depending on the location

What say you?

Pay off home loan set to expire 2036 on around 2014, then purchase land, thus reducing $ going straight into banks pocket.

Or

Go ahead and get the land now while the market is desperate, pay off home loan a little later like 2018
 
does it make sense to refinance home and buy the land? this way you'd take advantage of the low rates on both properties. but even if you don't refinance i'd buy the property now while rates are low.
 
At interest rates this low you'd be a fool to pay off the house early if you can get a better return elsewhere.
 
waffleironhead said:
What are your tax implications. Are you going to lose any significant breaks by paying off the mortgage sooner?
Click to expand...

My mortgage is only 100k and i dont file itemized anyway so probably no impact or negligible. Prop taxes on vacant land is like $3 per acre undeveloped

Im just real anxious about not buying when the iron is hot and then kicking myself years down the road for missing a good opportunity to buy in
 
mizzou said:
My mortgage is only 100k and i dont file itemized anyway so probably no impact or negligible. Prop taxes on vacant land is like $3 per acre undeveloped

Im just real anxious about not buying when the iron is hot and then kicking myself years down the road for missing a good opportunity to buy in
Click to expand...

Never been a better time to buy land/real estate.
 
blackdogdeek said:
does it make sense to refinance home and buy the land? this way you'd take advantage of the low rates on both properties. but even if you don't refinance i'd buy the property now while rates are low.
Click to expand...

Refinancing may make sense if we dont pay off early. Ill end up losing money if we refinance with closing costs and then pay off amyway a few ears down the road

Im really leaning towards getting it soon rather then later but it would be so awesome to owe nothing
 
rates are pretty rock bottom, id lock up my land first, then figure out where the remaining money gives the best return.

you can get 4% return paying your house down now, but if rates go to 8% when you need to buy your land...
 
I would consider some worst case scenarios.
What happens if you lose your job? Could you pay both properties, for how long? How fast could you get another job?
What happens if you become disabled and unable to work?

I would imagine that right now is about the best time to be buying property as there ever was. And since the difference between 2014 and 2018 isn't that great, I'd be more inclined to go for the new property now if it means that much to you.

But I do like the idea of having everything paid off.

If you went ahead and bought the land now, how long would it take to pay everything (current mortgage and land) off?

Also, what are rates like on loans for land? I would think that the rates might be higher, but I really have no idea
 
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Paying off your mortgage is an investment of sorts.

Me? Owning my home outright would be a huge, HUGE relief to me. You can have a whole shitload go wrong in your life and still go to bed and sleep easy when you dont have a mortgage.
 
I have not had simultaneous mortgages, but somewhere I've heard that your second mortgage interest rate will be higher (makes sense, since you are adding more debt, thus more risk), which could potentially offset any difference in interest rates between now and 2014. Do a fact finding mission and see what kind of rate you can get for the new land. The property values won't increase dramatically over the next 3 years. Depending on your area, it might even remain the same (no idea how your market is).

Personally, I'd pay off my mortgage. It provides security should something unexpected happen. Taking on two mortgages could be a financial strain, and cause all sorts of problems should something unexpected come up.
 
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