Anonymous
Post 02/08/2014 09:21     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Have you ever lived in a condo or TH? You are trading shoveling snow for loud and possibly obnoxious neighbors, many rules (even to add a ceiling fan you need approval) and condo fees. Just sold ours and we will never go that route again. Horrible experience! Nice 400k community but our neighbor was a psycho. Police came out at least once a month. You have no control over who is living under you, over you, beside you. At least in a SFH you have some distance!
Anonymous
Post 02/08/2014 08:05     Subject: Re:Gonna sell and buy somewhere cheap and have $0 mortgage
We're mortgage free and there's nothing better, knowing you're always going to have a roof over your head not matter what life circumstances come your way. We have deductions that help with our taxes, but not the mortgage deduction. When my husband lost his job in '08, and I only work part-time, it was a blessing to not have to change our lifesytle.
Anonymous
Post 02/08/2014 07:43     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:My house is in an up and coming neighborhood but in the last 8 yrs i've owned it it hasn't appreciated much. It's fine but i don't love it. I could hang on to it but i am sick of it. Mice, neighborhood crime, shoveling snow, etc. SO OVER IT. Will probably sell this spring for $450,000. I owe $260,000 on it. I'm struggling to pay for private school so taking DC out. I could then buy a large condo/townhouse in silver spring for $150,000 and send my kid to local MCPS school. I'm REALLY loving the idea of having $0 mortgage and $0 school fees and not shoveling my own snow or dealing with landscaping; having a pool and tennis courts and better security.

I work in downtown silver spring but I plan to resign bc I hate it.

What would you do?


That price seems low for a "large" condo or townhome in Silver Spring.
Anonymous
Post 02/08/2014 07:43     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:
Anonymous wrote:0 mortgage may seem attractive but then you don't get the deduction for interest paid. Just factor that in too.


Good point! A small mortgage might be beneficial to lower your tax bill.


Actually, you are mistaken. A "small" mortgage at today's interest rates probably wouldn't even throw off enough interest to be deductible at all.

In places like Washington or Florida, where there is no state income tax, you can have a mortgage of around $200,000 (which buys a lot of house in some of those places) and get to tax benefit.

The reason is you have to clear the standard deduction to itemize. The real value of any deduction is the delta between the standard deduction and your last dollar on your itemized list.

Anonymous
Post 02/08/2014 07:40     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:
Anonymous wrote:0 mortgage may seem attractive but then you don't get the deduction for interest paid. Just factor that in too.


I think OP would rather pay $0 in mortgage interest than pay $1000 a month in mortgage interest and get $250-$300 of it back as a tax deduction.


This is true as far as it goes, although remember that a mortgage deduction also becomes the base for other deductions that might not otherwise be claimed if you cannot itemize. So, you have to look at the total value of all the deductions that are being foregone. Granted, it's still not even close to dollar-for-dollar, but it's worth more than just the marginal rate X the totality of the mortgage interest.
Anonymous
Post 02/08/2014 07:40     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:0 mortgage may seem attractive but then you don't get the deduction for interest paid. Just factor that in too.


I think OP would rather pay $0 in mortgage interest than pay $1000 a month in mortgage interest and get $250-$300 of it back as a tax deduction.


No shit. Do you people really think the mortgage deduction is free money or something? Do you get some sort of strange satisfaction giving $4 to a bank rather than $1 to the government?


The goal is to lower your tax bill as much as possible. What good is paying 0 and finding out you owe a shitload later?
Anonymous
Post 02/08/2014 07:40     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:0 mortgage may seem attractive but then you don't get the deduction for interest paid. Just factor that in too.


I think OP would rather pay $0 in mortgage interest than pay $1000 a month in mortgage interest and get $250-$300 of it back as a tax deduction.


No shit. Do you people really think the mortgage deduction is free money or something? Do you get some sort of strange satisfaction giving $4 to a bank rather than $1 to the government?


The goal is to lower your tax bill as much as possible. What good is paying 0 and finding out you owe a shitload later?
Anonymous
Post 02/08/2014 07:38     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:0 mortgage may seem attractive but then you don't get the deduction for interest paid. Just factor that in too.


Good point! A small mortgage might be beneficial to lower your tax bill.
Anonymous
Post 02/08/2014 07:37     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:My house is in an up and coming neighborhood but in the last 8 yrs i've owned it it hasn't appreciated much. It's fine but i don't love it. I could hang on to it but i am sick of it. Mice, neighborhood crime, shoveling snow, etc. SO OVER IT. Will probably sell this spring for $450,000. I owe $260,000 on it. I'm struggling to pay for private school so taking DC out. I could then buy a large condo/townhouse in silver spring for $150,000 and send my kid to local MCPS school. I'm REALLY loving the idea of having $0 mortgage and $0 school fees and not shoveling my own snow or dealing with landscaping; having a pool and tennis courts and better security.

I work in downtown silver spring but I plan to resign bc I hate it.

What would you do?


I think you really are onto something here! Remember that the 'best' schools people talk about here might not be a fit for your child, so don't worry about getting a place in an area with the 'best' school, go for one your child will feel safe and secure in.

What I love is the positive 'tone' in your post and the practicality it shows. Go for it!!
Anonymous
Post 02/07/2014 23:20     Subject: Re:Gonna sell and buy somewhere cheap and have $0 mortgage
Well, I too am curious where you are going to find something for $150K. But if you buy a townhouse, make sure it is a townhouse condo and not a fee simple townhouse. I lived in a townhouse with some neighbors who somehow thought they were in a townhouse condo. They never raked their lawn, never shoveled snow, just pretended they had no outside home care, when in reality we lived in a fee simple town house and you care for your own lawn and outside of your house. Lousy neighbors. If you don't want to take care of anything, make sure it is a condo.
Anonymous
Post 02/07/2014 21:56     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Anonymous wrote:
Anonymous wrote:0 mortgage may seem attractive but then you don't get the deduction for interest paid. Just factor that in too.


I think OP would rather pay $0 in mortgage interest than pay $1000 a month in mortgage interest and get $250-$300 of it back as a tax deduction.


agree
Anonymous
Post 02/07/2014 17:18     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Where is the house you live in now?
Anonymous
Post 02/07/2014 16:29     Subject: Re:Gonna sell and buy somewhere cheap and have $0 mortgage
Don't forget condo fees, they can be really high..
Anonymous
Post 02/07/2014 16:28     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
yeah, no need to stay in the DC area really but moving to a whole new city doesn't really interest me unless it's new york city (can't afford) or los angeles (can't afford) or overseas (haven't researched enough - and there's still that pesky job thing which gets complicated when you need a sponsor or a visa or the language)

maybe i should buy a condo in panama or something?
Anonymous
Post 02/07/2014 16:20     Subject: Gonna sell and buy somewhere cheap and have $0 mortgage
Why stay in the DC area? $160,00 will by you a nice condo in certain areas of Florida, or wherever else you might like to go...