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Credit cards for some are like a shot of whiskey for an alcoholic
They don't know when to quit . . .
For those who can NOT control their spending, cut up the cards and go cash or debit card.
For most, the mortgage is the best loan you will ever get. Master Card, Visa , GMAC won't give you 30 years at 6% to pay off your loan. If someone is willing to lend you money for half your life at 6%, take it and hold on as long as you wish.
The folks who are bent on paying off their mortgage when other things are not secure (like LIQUID savings) are messed up.
Two things in life are not liquid. Your home & your 401(k).
The only way to get money out of your home is to borrow it or sell it.
If you borrow, you owe someone interest.
If you sell it, where will you live?
Taking money out of a 401(k) is just as bad. Taxes & penalties mean you have to borrow $10,000 to net $6,000 AND you have to pay back the $10,000 + interest.
Leave money in your home. Leverage your equity to buy more property if you can.
I want to refi so bad I can't stand it. We have enough equity to buy several rental properties and generate a significant monthly income.
Wifey won't agree so we are sitting on dead money. Bums me out.
I don't understand the logic in your thinking. Keep a loan against the house so you won't have to borrow against the house if you need money later? I don't like it.
My plan has always been to pay everything off. Then build up cash with the money you would be making payments with. When that builds up, invest in more property (just like you said.) I'm not about being too leveraged. I like to sleep at night.
I think one thing that has kept me successful in sales is the fact that I don't NEED to make a sale to pay the bills. I think people can smell it when you are desparate.
Just live below your means and pay off ALL debts as you can. That part Dave Ramsey and I agree on. Much of the rest of what he says is BS.