I thought “pride in ownership” was referring to the fact that owner occupants are more likely to maintain and care for their home than renters or investor owners. Not that they’re proud of the fact they own the house – but that they want to maintain their investment because a) they live there, b) they are financially tied to it’s resale value.
[quote=squat300]
I’d rather owe 250000 on a place worth 800000 than own a 250000 place outright. I’d be prouder to have the debt. A free and clear deed would not bolster my pride.
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Don’t you mean you’d rather owe $250k on a place worth $800k than owning a $550k place outright? (The way you stated it makes it a no brainer that you’d want to be in the higher equity position… $550k vs $250k.)
Sorry – the nerd in me was perturbed by that.
I’m with CAR – I think you’ll live longer than you seem to think – and also that you’ll end up mortgage free. We’re nearing the point of just writing a check for the balance of our mortgage. (Nearing… not quite there). At some point the lump sum payoff is small enough that it makes sense to take a monthly expense off the table. When you get down to $20k… are you really going to keep paying monthly payments, even when you aren’t getting much of a deduction because interest is so low at the tail of the mortgage?
