June 23, 2008 8:11PM
The Great Mortgage Debate
By Alexis Glick
This morning on The Opening Bell, I talked to two gentlemen who have completely different points of view on whether or not you should pay off your mortgage before you retire. It was any excellent debate and a very important topic for any one of the millions of baby boomers who face this decision. Mom and Dad, if you’re reading or watching this — take notes! 
Brad Levin of Legacy Wealth Partners was “for” keeping your mortgage into retirement. Craig Carnick of Carnick & Company was “against” keeping your mortgage into retirement. They both make great points. Whether you are about to retire or not, they give some sound advice on the benefits and detriments to having a mortgage. Take a look.
Comment by chuck
Jun 24th, 2008 at 10:08 am
Both made excellent points. Reality is reality. Eversince the homeclosures hit an all time high and now the FBI’s Operation Malicious Mortgatge is in full swing,there is no telling how the housing market is going to shake out. I can’t help but think of the families who are already out on the street becouse they can’t make thier payments. Or the low income family forced out thier homes. An associate of mind told me late yeasterday the FHA is going to give out mortgages to low income families despite thier credit record–good or bad. Is there any truth to it?
Finally reality has hit the Vicksburg Housing market in a huge way. Some moted Antebellum homes here in town are now up for auction. The auctioner from Madison stated the fact that these homes would fetch less for thier appraised price. And some of these homes need repair and maintence. Now Pam Powers,a local realtor, commented about that isn’t nothing new. I got the impression she’s in denial that her own housing market has been hit big with this housing downturn. But these antebellums which are overpriced,even those putting them up for auction are worried they may not find buyers. But buyers in Europe expressed intrest in them but it doesn’t mean that they will be takers in this downturned market.
Comment by Jim
Jun 24th, 2008 at 10:15 am
Mr. Levin’s investment credentials should be REVOKED…
Houses do not always appreciate. Guessing that equities are going to outperform your note is RIDICULOUS.
Follow Mr. Buffett’s principle. NO DEBT!
Comment by stephenlee
Jun 24th, 2008 at 4:09 pm
As long as your mortgage is at a fixed, affordable rate, it makes more sense not to pay it off. Keep your cash investing and growing and later, you can pay it done if you want. Why be house rich and cash poor?
Comment by Rod
Jul 1st, 2008 at 4:17 pm
Mr. Carnick is exactly right in his comments. The emotional peace of mind is a huge piece in an older person’s fianacial picture. As a CPA I almost always advise older people to pay off their mortgages and get to a position where they have no debt. Good advice Craig!