Almost everyone tells you about the tax benefits of Frisco Texas home ownership. I’d like to take the opportunity to share some information, that after you have digested it, and if you still believe in keeping the mortgage, I understand.
To set the parameters here:
(1) Let’s assume you pay about $10,000 worth of interests to the lender every year.
It sounds alot but not really. Have you seen the monthly payment you make each month and how much of that goes towards the principal, then the interest?
It’s almost like having a $1,400-$1,500/month mortgage payment and here in Frisco, many homes have more than that as payment.
(2) Let’s assume you are in the 25% tax bracket for personal income.
When we do MATH, 25% of $10,000 = $7,500. So, it still costs you $7,500 in after tax-dollars for your mortgage payment.
Let’s say you paid off your Frisco TX home, you now don’t get to write off the $10,000 in mortgage interest. Therefore, causing you to pay $2,500 more in taxes to Uncle Sam. Yikes!
But guess what? You get to keep ALL $7,500 of your own money!!! To buy things you want. To do more with your hard-earned money.
Mortgages shouldn’t be treated like a pet – to keep around!!! Every household should strive to pay off their mortgages regardless of what super-sophisticated financial people tell you.
When you don’t have a mortgage, do you know what you have? MONEY! Money you can do alot of things with. Money you can spend on your children, your family and beyond that, how about money you can help the community and world around you with!
But more importantly, I promise you that you will feel a special burden lifted off your shoulders. If you are unemployed and no mortgage, you make better career decisions instead of jumping onto the first job offer that crosses your path.
How about this? Say, you don’t know how this journey of becoming mortgage-free would lead you? Pay off your house, the money that you would use otherwise to give the lender, now you give to your church or your favorite charity? Don’t you get the same write-offs and the organizations you care about get to take your money to do great work!
And if you didn’t like that plan after that, you know you can always go back and get a home equity loan, only to turn around to pay the lender back again.
This message applies to everyone who has a mortgage. It doesn’t apply to only homes in Frisco. I just sell homes in Frisco and the surrounding areas.
If you or anyone you know who would like to talk about this “mortgage-free” idea, let me know. I’d love to help!