irvinebullhousing
Well-known member
Americans hold $8.88 trillion of mortgage debt, according to a February report from the Federal Reserve Bank of New York. It's the largest type of household debt in the country, and it increased "substantially" during the fourth quarter of 2017 ? up $139 billion, according to the report.
If you're one of those millions of people with a mortgage, your top priority should be paying it off before retirement, according to Kevin O'Leary.
"If you want to find financial freedom, you need to retire all debt ? and yes that includes your mortgage," the personal finance author and co-host of ABC's "Shark Tank" tells CNBC Make It.
You should aim to have everything paid off, from student loans to credit card debt, by age 45, O'Leary says.
"The reason I say 45 is the turning point, or in your 40s, is because think about a career: Most careers start in early 20s and end in the mid-60s," O'Leary says. "So, when you're 45 years old, the game is more than half over, and you better be out of debt, because you're going to use the rest of the innings in that game to accrue capital."
"Mortgages are more of a gray area than credit card debt, because real estate can be an investment," O'Leary explains. Still, he advises you to think long and hard before taking on a mortgage at all.
"It's not always a good investment, and in my opinion, most people in their 20s, or even 30s, have no reason to be taking on that kind of debt," he says. "Homes don't always gain as much value as you expect ? at least not anymore, and at least not quickly."
https://www.cnbc.com/2018/06/13/kevin-oleary-pay-off-your-mortgage-by-this-age.html
My statement - Not when you carry a million in mortgage debt, and in the last great recession, it considered you are imprison in your own home. Can't sell and can't move.
If you're one of those millions of people with a mortgage, your top priority should be paying it off before retirement, according to Kevin O'Leary.
"If you want to find financial freedom, you need to retire all debt ? and yes that includes your mortgage," the personal finance author and co-host of ABC's "Shark Tank" tells CNBC Make It.
You should aim to have everything paid off, from student loans to credit card debt, by age 45, O'Leary says.
"The reason I say 45 is the turning point, or in your 40s, is because think about a career: Most careers start in early 20s and end in the mid-60s," O'Leary says. "So, when you're 45 years old, the game is more than half over, and you better be out of debt, because you're going to use the rest of the innings in that game to accrue capital."
"Mortgages are more of a gray area than credit card debt, because real estate can be an investment," O'Leary explains. Still, he advises you to think long and hard before taking on a mortgage at all.
"It's not always a good investment, and in my opinion, most people in their 20s, or even 30s, have no reason to be taking on that kind of debt," he says. "Homes don't always gain as much value as you expect ? at least not anymore, and at least not quickly."
https://www.cnbc.com/2018/06/13/kevin-oleary-pay-off-your-mortgage-by-this-age.html
My statement - Not when you carry a million in mortgage debt, and in the last great recession, it considered you are imprison in your own home. Can't sell and can't move.