I hate my mortgage (debt)

[poker-penguin]

I'm planning on buying an apartment early next year (hoping like hell NZ interest rates come down in that time though - 9 effing percent, [censored] you low inflation policy).

Even though it might not make the best sense to pay it off immediately (haven't looked into tax ssues yet). I still think I will go for the flexi mortgage (the one that's like a bank account so you can pay off as much as you want when you want). Getting rid of debt just feels good.

[NutCrackerr]

I love debt. I have no dependents to leave an inherritance to. My goal in life is to die owing as much as possible, every credit card maxed out, that way, I win.

[RichS]

I hate debt too... I have two mortgages (I own a house and a downtown loft, or if I think about it, the bank owns a house and a loft) and a student loan. I should be getting a bonus from work on the 15th of July of around 20 to 30K so the student loan should go away. Considering I'm 38, still having a student loan sucks!

[mmbt0ne]

Is a mortgage not a good tax shelter in Canada?

[acoustix]

You may not realize this, but that mortgage debt is actually helping you a lot, especially your credit. Just keep making the payments on time and grind it down. If I read this correctly, this is your first home, right? If that's the case, then you won't be there more than a few years, so paying the whole thing off is pretty pointless.

[kibble420]

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Im only 21 but was raised hating debt....therefor I didnt have any until this wk actually...first mortgage.

I dont have a concern of making enough to pay it though so it doesnt trouble me all that much....but Im with you wanted to make it go away in under 5 yrs.

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21 and have a mortgage, damn man.

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Been there, done that [img]/images/graemlins/wink.gif[/img]

[ThePost]

I agree that paying it off might not be the smartest $$$ decision here. But I could live here for 2-10 years, and the feeling of being debt free would be awesome.

I am going to just save some money and ponder if I should put the cash on the mortgage, or somewhere else.

[ScottieK]

For those of you with credit card debt and some home equity...consider getting a home equity loan or line of credit and paying off your CC's with that. Guaranteed the rate will be better, and the interest is tax deductible. Loans are usually fixed-rate, and lines are floating rate. WSJ prime just went up yesterday to 8.25%, so a fixed rate may be a better deal. My bank offers a rate reduction if the payments are auto-deducted from your bank account.

EDIT for clarity: Paying mortgage payments (not necessarily all at once) is a huge benefit to your credit score. Not only does it build equity that you can borrow against (see above), it establishes a credit history and home residency, which both positively affect your credit score.

Paying off your debts faster than what your debt schedule allows can be a good thing, but be careful not to create a cash flow pinch by doing that. Make sure you still have money for unforeseen expenses and your regular spending, of course.

For those of you awash in money and debt free, congratulations [img]/images/graemlins/smile.gif[/img]

ScottieK

[samjjones]

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I understand fully that there are better places to put my money then in my mortgage, but I also know that it would make me feel much better to have my mortgage paid off, then it would having a similar amount sitting in an investment.

Dumb? Yes.

Will I actually use extra money to pay off my mortgage faster? Still not sure.

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ITLR, if you can beat 5.5% a year, good for you.