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Why? Being unemployed is a cash-flow problem. You've got no money coming in, yet you've got this $1400+ bill due each month. Having the deed to your house mea
by chiph 9y ago
Why? Being unemployed is a cash-flow problem. You've got no money coming in, yet you've got this $1400+ bill due each month. Having the deed to your house means you have a (mostly) free place to live, and your cash-flow problem becomes significantly smaller.
- pcwalton 9y agoIf you have the cash to pay off your mortgage, that savings will last longer if you save it and pay down the mortgage under the standard schedule than if you blow it all on the mortgage straight away. Your mortgage is a loan, after all--one that you've already pre-qualified for, which comes with tax advantages as well as a subsidy courtesy of Fannie Mae and Freddie Mac.
- discodave 9y agoThe tax advantages don't matter if you have no income! Also, with main tax advantage I know of (interest deduction) you still pay more money if there is more interest. i.e. if you have 20k of interest a year, the income tax deduction makes it seem like ~70% of that, depending on your tax bracket, or 14k. But if you're only paying 15k of interest per year, then it's 70% of 15k, or ~10k. 10k is less than 14k.