A No-Fee Mortgage

[Fly Rod]

http://realestate.msn.com/a-no-fee-mortgage-really

[WESTPORTMAFIA]

Yeah not really but you would be surprised by the number of people who call looking for one. I try explaining how it works but its usually beating a dead horse
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[Jackbass]

Same reason why car dealerships advertise pricing per month. People don't understand the true cost only how it affects money they have or do not have
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[Fly Rod]

Originally Posted by WESTPORTMAFIA

Yeah not really but you would be surprised by the number of people who call looking for one. I try explaining how it works but its usually beating a dead horse
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Agreed.....be surprised how many do not understand the APR...someone has to pay bank and or mortgage company cost....people also do not understand a reverse mortgage either and the high cost.

I'm waiting for that insurance fella with all them bills on his body to pass me on the water...my net is at the ready...LOL...

[JamesJet]

That said, there is a time and a place for them. I don't plan on being in my house very long and hedged that when booking a refi a few months back. Current cashflow is important to me and the payoff on closing fees vs no points no close isn't immediate, it takes a few years. If I end up not moving for whatever reason, I am good with the loss over time, its the gamble I took. Not huge money anyways. Article makes it sound like its very shady, its not, you just need to understand what the rate is and what alternatives are. I know the real rate was clearly stated everywhere. Marketing is what it is, understanding what you are getting is what's important.
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[Raven]

i've been reading that even if you had sufficient funds to buy a property with
100% paid off with a certified bank check after the 30 day waiting period you LOOSE some advantages
in the way of tax deductions and it would be wiser to pay off say 80-90% and have a super small mortgage payment
to retain that tax advantage. Do you Agree?

[Rockport24]

What tax advantage? The deduction for the interest? That would seem tiny compared to the interest you would actually pay over the life of the loan.

The only way it would be better to NOT just pay with cash is if you think the property value will go up and when you sell, you will recover the cost of your interest and still make a profit...
OR if you are fairly confident you could invest the money and get a better return than you would be paying in interest, which is possible given interest rates are still low...

[Raven]

i don't know if it changes the scenario but it's farm property i was speaking of
not residential , but so far i haven't a clue as to what that reference meant to be honest
which is why i asked...

[PaulS]

Originally Posted by Rockport24

What tax advantage? The deduction for the interest? That would seem tiny compared to the interest you would actually pay over the life of the loan.

I always laugh when people talk about the tax advantage. Now if they had a guaranteed investment that was making a higher % than the interest, that is a different issue.

[Rockport24]

HA! Yeah and a guaranteed 4-5% plus any inflation can't be easy to come by these days. If I came into a bunch of money, I would be DE-leveraging fast!

[WESTPORTMAFIA]

The interest can definitely lower your tax brackets by a good amount

[Jackbass]

Originally Posted by WESTPORTMAFIA

The interest can definitely lower your tax brackets by a good amount

If mine gets any lower I will get an Obama phone
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