Herring405 made the following inexplicable comment:

> the interest on a mortgage is quite manageable
> when you look at the earnings you free up for
> other things by not paying the whole enchilada
> at once. It really isn't all that great to have
> a house paid off.

Mr. 405:

Please inform me of your math abilities, because I would like to know how exactly paying $300,000 for a house that is worth $100,000 frees up more money for "other things?"

What kind of math is it that you are using?

It's not what I was taught in school, that's for sure!

You see, while the guy with the mortgage is working overtime to meet the payments every month, the guy who has paid his house in full is investing an amount equal to what Mr. Mortgage is pissing down the drain by giving his hard-earned money to the mortgage lender.

That mortgage that is supposed to be 8% (for the sake of the argument--- this whole example is for the sake of the argument) ends up being an amount equal to two times the original purchase price, and that morphs the 8% into something like 200% over thirty years. And, don't give me all that compounding interest bullshit, because all of that nonsense is buried in the fine print. In case you are wondering, the fine print is the shit you need a microscope to read.

While others are giving their banks almost $800 a month to pay for the same house three times over again, the smart one who has no mortgage is investing the money that otherwise would be going down the toilet.

Here is an analogy that equates to your example.

I'll sell you all the copies of the new HCTNFU CD that you want--- BUT, they will all cost you $45.00 each, instead of $15.00 each!

How many do you want me to send you--- two or three truck loads?

Spending $300,000 for something that is worth $100,000 does not put anything in your pocket, it takes huge amounts of money out of your household.

Bye, bye vacations for you, while the guy with the paid off house takes four weeks off a year, and travels first class all the way.

You are paying that steep mortgage, while the guy who has the house paid in full can suddenly afford the $13.99 a pound steak that you can only wonder what it must taste like.

And, it goes on and on.

But, this is no big surprise, because the schools of 2002 are turning out sheeple that don't question anything, and they believe that the guy sticking the knife in their back is there to be their friend.

This is like basic third grade math here, people!

$300,000 is more than $100,000.

You taking 30 years to pay it off, does not put more money in your pocket!

And, by your comment on taxes--- I assume you are talking about the mortgage interest deduction on your yearly income tax.

Yeah, what a deal--- they advertise mortgage loans at 8%, it really ends up being 200%. They give you a 15% rebate on your income taxes, and somehow you think you are getting some kind of a deal, when you are getting screwed royal!

Here is an example:

You have two people:

Both make $2,500 a month take home pay

One has house paid in full, the other has a $800 a month mortgage payment.

Both are paying $500 a month for utilities

The guy with the house paid in full nets $2,000 per month.

The mortgage holder ends up with $1,200 at the end of the month.

I am interested in why you believe that $1,200 is greater than $2,000.

Please enlighten me.

I am very curious as to your answer.

And, I thought I was bad at math, sheesh!

Peace and Prayers,




Kent Daniel Bentkowski
Buffalo, New York USA