Allstocks.com's Bulletin Board: Payoff house or not?

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Posted by sneaker68 on :

A big "What if...?" senario here. If my investments hit it big would it be best financially to pay off my house or still make payments and deduct the interest? The later (recommended by a coworker) seems crazy to me as one usually pays around double the loan amount in interest. I make ~$35K a year and '03s tax return was about $1100 total. Doesn't add up to paying off the loan, IMO. Your thoughts?
Thanks.

Posted by Meshoe45 on :

quote:
Originally posted by sneaker68:
A big "What if...?" senario here. If my investments hit it big would it be best financially to pay off my house or still make payments and deduct the interest? The later (recommended by a coworker) seems crazy to me as one usually pays around double the loan amount in interest. I make ~$35K a year and '03s tax return was about $1100 total. Doesn't add up to paying off the loan, IMO. Your thoughts?
Thanks.

Keep paying it off first, you pay your interest off first in loans normally... and you could throw the money you made into more stocks, maybe stronger stocks, and double it later on... or atleast make a bit more off it.

Posted by sharkus on :

quote:
Originally posted by sneaker68:
A big "What if...?" senario here. If my investments hit it big would it be best financially to pay off my house or still make payments and deduct the interest? The later (recommended by a coworker) seems crazy to me as one usually pays around double the loan amount in interest. I make ~$35K a year and '03s tax return was about $1100 total. Doesn't add up to paying off the loan, IMO. Your thoughts?
Thanks.

This is just my opinion of course but all of the people that I know that are doing very very very well - all have their houses paid off. Personally I would pay off the house and then hire a really good CPA type that can show you how to have very nice deductions...