my mortgage finishes this month, should i take out a loan for fun purposes or save.?

Answer 1

Do some homework first. Determine what amount you would like to have for fun as opposed to how much you can take out. Then consider what payment you are capable and willing to make. See if that covers your fun money. If it does more than that, then consider investing the balance into income producing securities. If you can get something to cover the payment, then the money is free. I would also consider getting a term life policy to cover the balance.

There are many good income investments available. Remember, you will be looking at income, not growth. If you go to a stockbroker (bad move) they won't be able (or won't want) to help you. Some very stable securities (check on finance.yahoo.com) are: cik, acg, phy, dhy, and many others. If you are interested in knowing about more, then contact me.

Answer 2

Assume your mortgage is 15 or 30 years old, I would get another loan and invest it into your house.

1. Anything older than 15 years old:
Roof? Replace it with a great and strong warranty roof.
Central air or heating? Buy a bigger and more efficient system.
Water heater? replace!!
2. Stick a big portion in the bank to pay for "suprise" bills. Those are bills that come up, like new tires for the car, etc.
3. Take the third portion and give yourself a nice and affordable vacation.

That is what we did.

Answer 3

Congradulations!

That's the time you don't mind going to the bank to sign off that mortgage payment.

Another good reason you don't mind going to the bank is to continue to put money in your savings account.

You could celebrate by going out for really good dinner with that special import wine or beverage of your choice which could be at a great Hotel/Motel where you are served to the max. Mini vacations are sometimes better than long extended vacations. That way you could get away more often.

Long extended trips aren't good compaired to a good investment or saving that money for say, a rainy day or necessary repairs that hit you out the blue.

It's fun just knowing that the mortgage is paid off. You could purchase a good piece of land which can reap you rewards further down the line if you don't sell for sell it off for lots to bring in more housing. Everyone needs that untouched land for conservation along with yourself. Do it right with land management (cutting trees only when needed to preserve wildlife and the air we breath). Become a Tree Farmer. Check out the programs that are offered (Forestry Dept.) and then you can even save taxes on the property).

Know I'm getting too long here. Large tracks of of forest property have quadrupled for us if you do it right. Small cabin in the woods ... doesn't get any better for a "get away."

It all comes down to saving instead all the fun things and you have nothing to show for it. Remember, small cabin in the woods if you choose to go in that direction.

Too much development is just one consern we have today.

Just something to think about. Everyone needs savings to get through the hard times, especialy now when so many people are loosing their homes,

Again, congradulations .........

Answer 4

Unless you need the money to do major home improvements I would not take out another mortgage. You are finally out of debt, keep it that way. If you want fun money save up a couple of months of what you were formerly paying for your mortgage.

Answer 5

If you are mortgage free and own your home, then I would re-mortgage, get out as much of your money as you can and then invest this somewhere.

1.

You could get the money from the mortgage lender at say 5.5% or 5.9% and then put the whole lot into a high interest account, or I know of 2 companies that will pay you 25% per annum, paid quarterly, min investment is 30k email to find out more.

2. get the money and use it to put down as a deposit on a property off plan. You can buy off plan in some countries with as little as 3 or 4k deposit for a city centre flat

3. buy a house for around £15,000 or $30,000 with a yeild of upto 30% - email for more details

4. take the money to vegas as put the lot on black on the roulette!

Answer 6

congratulations on paying off your mortgage, thats always a wonderful feeling. i would save some of that extra money, but also spend some as a pat on the back, ut i certainly would not get a loan.

Answer 7

You will save money on taxes if you take another loan on your house. I agree to continue to work on your house and invest in it. Or, buy another and rent it if you can. I wouldn't take out a loan for free spending though. Then you're just wasting money.

Answer 8

This is a tougher market to qualify in.

1) If you can afford to repay it .... go for it. Its still the cheapest forms of lending.

2) If you want to invest make sure your rate of return on the investment is larger than the mortgage interest rate .... because see item # 1)

Answer 9

You are used to setting that money aside... keep doing it!! At LEAST 1/2 of it... put it into a money market account or a savings account at least!! Then use the extra income for some fun stuff... don't blow it all.

Congrats... that is very VERY exciting!! ((I WISH I was in the same boat))

Answer 10

You lucky lucky barstool we have got another 18 years to go on ours and would love to be able to use the money in this property properly rather than have to pay it back by adding another ten years to the mortgage.