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No. of Recommendations: 2
Thank you for your responses.
<< Today, this is illegal. If you have a mortgage, then as long as you are making your payments, the Bank CAN NOT
take your home away.>>

The point is that if my house is paid off, I can do a host of other things with that money.

<<If my Dad had a 30 year Mortgage, his Mortgage payment today will be the same as it was 30 years ago.>>

Unfortunately, this is NOT the case. There's such a thing as "property TAXES." In some areas of my city they've gone up almost 20% in one year. Guess where it gets reflected? In your escrow,ultimately, in your payments! This has NOTHING to do with a fixed rate.

<<If I put 100K into my 100K home, and the home is worth 150K in 10 years, then I made a Whoopping 50% on my initial
investment in 10 years.
If I only put 10K into my 100K home, and over the 10 years, I put an additional 20K into it via my Mortgage payments,
(30K total), then my return is 500%.>>

Based on your input numbers, my output comes nowhere near 500%. Here's why:
As you say: Cost of house=$100K-down pmt$10K=90K
pmts of $20K(assuming on principal), leaves $70K on your mortgage balance. If you sell @$150K, after paying off mortgage, you have $80K. You're total outlay was $30K, leaving you with a "profit" of $50K over 10 years. This is only just under 17%/year. And this is not counting the tax and COMMISSION that you have to pay.

<<Finally, the Stock Market (over the Long Haul) returns an average of 11% per year. This beats the rate of your Mortgage by
more than 3% per year (assuming your Fixed rate is less that 8%).>>

Over the last 8 years the S&P500 alone has done better that 266% and that's an average of more than 33%/year. And as the graph below indicates just a few good stocks (offerring MOSTLY no-fee DRIPs) would dwarf that handily.
http://www.siliconinvestor.com/research/comp_chart.gsp?cs=intc&cs=hdi&cs=payx&csi=INX&cs=ge&cs=mdt&cs=dg&cs=pfe&n=100&p=month
All-in-all, I believe there's a point in being debt-free. BTW-my interest rate is 8.25%.
Regards,
Eddie
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