Reply to If paying off your mortgage is dumb, why do so many rich people do it?

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Reply to "If paying off your mortgage is dumb, why do so many rich people do it?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Nobody so far in this thread has mentioned how the truly wealthy families with generational money do it. The younger generation wanting to buy the house uses family loans to buy the properties outright in cash and then they pay the loans back to the family at extremely low low interest rates (because there is a legal requirement) and then any outstanding debt is forgiven at a later time (usually when the original older granter passes away). So the loan money stays within the family, as does the house. The bank is never involved.  [/quote]

That doesn't answer the question of why the family pays cash instead of investing. [/quote]

Maybe because they’re dumb with money?[/quote]

Obviously because they are paying themselves, with family money they will inherit in the future, instead of just handing it over to a bank. Hardly dumb.[/quote]

Why are they even paying it back to their own family?[/quote]

Maybe to show the older family members they are responsible, productive members of society?[/quote]

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