Bitcoin Forum

I owe about $50K on my mortgage. Should I throw 15BTC at it and be done, or keep paying the minimum and HODL the coin as an investment? 15BTC is <20% of my holdings that I purchased at $250/coin back in 2015, by the way. Thanks in advance!

they reckon 10% spent of your wealth has not so much of an effect.

That said, let all the money printing evaporate the value of your 50K to 5K.

The sane decision would be to get rid of your mortgage. After all you made a good profit either way.

Nonetheless I'm convinced that BTC still has a great future ahead, so I'd probably try to find a middle ground by selling only part of my coins. For what it's worth keeping even just 1 or 2 BTC may be worth a little fortune at one point.

Either way, you gotta figure out what works best for you, both financially and mentally. If you're financially stable and know that you can handle another 50% drop without feeling the urge to panic sell, hodling may be preferable. If you're just barely able to pay your mortgage and even the thought of the next drop makes you uneasy you should probably sell some.

I wouldn't sell in a dip even though you have made a good profit. I'd wait for the price to get back to $5000. Even then I wouldn't sell all my Bitcoins. You might consider holding half and cashing in half.

It also depends on how much time is left on your loan, the interest rate you are paying, and your financial situation. But I don't think there is anything wrong with cashing in big gains especially if you are putting the money toward a loan that is costing you interest.

Doubt you should be paying the minimum regardless of the payment option.
Have you looked at other ways to pay off sensibly without getting rid of your coins?

I'm retired and made weekly payments for years. Was $250K in 2011? Now $500 mortgage payment monthly. I'm not a math guru and was basically trying to decide whether to pay 15BTC once, or $500/month. I just feel in my heart that 15BTC is really $150K to $1.5M. If I had USD instead of BTC I would've paid it off ASAP, but BTC is worth WAY more than $3,500/coin IMHO. Thanks in advance, guys!

Pay it off slightly faster. Maybe double what you pay monthly or so. Remember that your house is a physical asset that you own and is more stable than BTC will ever be. Everyone needs a house but not everyone needs BTC. Invest in tangible wealth before speculating.

Seems to me that you value being free of debt more than being rich. So do I. My vote is for you to pay your debt, I think you will have more piece of mind that way. Even in the case Bitcoin skyrockets, you'll likely to say to yourself "but I am free of debt now".

The peace you receive from being free of debt greatly surpasses the anxiety of ...."Will Bitcoin grow?..." and then when it grows "Should I pay my debt now?" and then when it goes down... "Should I have paid my debt?".

Besides, you have more Bitcoin, and you can buy 500$ of BTC monthly from the position of being free of the mortgage. You'll have control.

And, just in case you are a believer, consider Romans 13:7-8.

Hope it helps :)

Don't make the mistake of selling BTC, specially at such a low entry point. At $250/coin you can take a lot of punishment and still be safe in the profit zone so you shouldn't panic sell. Forget about this money and look 5 years from now, then forget 5 more years and then you will be retiring.

Wageslaving sucks but you owe that money, keep paying it with your wage, if you dump your BTC then you will not have the realistic hope of getting rich in the next decade. You got to have some investments in your portfolio for the long term.

Pay off the mortgage in 2020 using 1 bitcoin.

If you're only paying $500 per month for your mortgage payment, I would just keep paying that since it is so low. There is potential for Bitcoin to do great things in the next few years even though it is very unknown. The good thing is that you aren't paying much for that mortgage and you don't have a large balance left.

Your Bitcoins could make you very wealthy in the future if you just hold and see what happens. There's really no right or wrong answer. Like I said before, whatever you decide, I still recommend that you don't sell all of your Bitcoins now so you can have a chance to make some big profits later as Bitcoin grows and develops as a more mainstream currency.

how much taxes and social security would you lose, when cashing out 50k?

it may be better to cash out smaller amounts and use them for extra payments against the principal, if you can save on taxes and/or social security that way

I don't know where you are but in the US, it is 15% cap. gains and in Europe, up to 50% in taxes and social security if you cash out 50k in a year.

Don't feed the parasites  ;D

All crypto currency profitable in the short term. No one will give you the assurance that it always will be. The price of crypto currency is not very stable and you can not only lose their investments, but remain without shelter. I think what you need first and foremost to service its debts. The money you can always earn it later.

If I were you I would definetely try to get rid of the mortgage. Bitcoins can enable that for use and I think you can't spend them any better but maybe you could make more payments, not just one big because that coud attract the attention of tax authorities. But the sooner younget rid of the bank, the better for you.

If you believe in bitcoin then hold on to it and don't pay off that mortgage yet. You could probably pay off the mortgage monthly just by cashing out the growth in value of your coins. Then at the end of your mortgage you will still have your shiny bitcoins and won't have spent from any other forms of income you have.

Even after throwing the 15btc to settle the mortgage, if you are comfortable with your living then it's good to go for it. This gives an satisfied and relaxed living rather than an eye focused on making an effort to settle. It depends on the user necessity and the living sophistication.

Yes, at less than 20% of your holdings after the impressive run, do it. There is only going to be more drama with China and Segwit2x in the next couple months. Use the money you save on the mortgage payment to buy back your coins on a pullback. You still have over 80% exposure. As long as you factored in the tax aspect of things, seems like a good point to do so.

Read what the guy is posting:


He is already retired. You want him to wait for 5 years and then another 5 years?
I don't want to sound that grim but the reality is he might not be able to wait another 10 years for anything.

I'm more or less in the same situation as in yours, but I consider the mortgage the cheap credit I get to buy BTC. So I'm still having my mortgage now...

But I will definitive pay it off when it took 5% of my total holdings to do so; 20% is still a bit much, my personal opinion.

Bitcoinaire, I couldn't agree more with you :)

Pay the mortgage off and be done - that way you never have to worry about your shelter again. The peace of mind is literally priceless.

With the money you free up from no longer making monthly payments - reinvest that into bitcoin. That way, you'll rebuild your stash AND have a home free and clear.

Thanks guys, but I'm retired Air Force and not even 40 yet. I'll keep paying the mortgage in USD and checking BTC/USD every morning. However, I'll pay it off in full with BTC as soon as it takes 5% or heaven forbid 50% of my coin. Hopefully not the latter.

My economy teacher always told me that "your debt is your wealth".

Stay in debt & keep making profit from your bitcoin.

I think you need to decide on how you're going to view your bitcoin.  If you bought some just to try to make some money off of it, then maybe sell at least part of it and pay down/off your mortgage.  As others have said, the peace of mind is worth it.  On the other hand, if you're looking at your bitcoin as a longer term investment that you believe will be worth a lot more in the future, then treat it as such and leave it alone for now.

I would suggest to pay off your mortgage, you would still have a really good number of coins for future price rises. It would be really good to have no mortgage & bitcoin would have done that for you.

You may also want to consider selling just enough bitcoin to cover your initial investment (or maybe just a little more than that so that you know that you've banked a little profit).  That way, no matter what happens, you know you're not going to lose money.  That kind of peace of mind can help a lot with making more rational decisions about how you treat the rest of your investment.

i aggree with my previous poster. Sell off a quarter or half of yout investment and try to pay off your mortgage. Dont but all your eggs in bitcoin, what if it crashes.

My initial investment was $25,000 for 100BTC, so if BTC plummets to $500, I'm out. Conversely, if BTC hits $10,000 I'm paying off my mortgage with 5BTC and HODLing the rest. Again, thanks for the info, guys!

The fact is that Bitcoin can not be predicted in advance, although there are still forecasts for huge growth. Even if Bitcoin drops to $ 500, even then it will be followed by active growth and it is possible to reach these very $ 10,000 or even more.

If you have no problems in paying capital gains tax or in disclosing your identity to exchanges and the government while selling your coins, you should pay off the mortgage. You still stand to benefit from your other Bitcoin holdings if the price goes up. And you become debt free. That is a nice position.

That's also another option. My outrageous NY school/city/county taxes will be used as deductions, so I'm not really tripping about going incognegro moving my coins. If I move them, I'll ca$hout a cunthair under my deductions.👌🏽

Three options + 1 bonus option

The Safe Path
Pay off now and be done with it.

The HODL Path
Wait until 2020 and pay off the mortgage (chance BTC will be lower).

The Phase out path (RECOMMENDED)
Every month pay off the mortgage with a fixed amount of BTC (let's say 0.2BTC) until finished.
Recommended because you get an average sell rate. BTC is generally on the rise.

The YOLO Path
Wait until 2040 or later and buy the whole friggin' bank and crash a few Veyrons for fun while you're at it.  8) (or end up a bum under a bridge telling old stories about owning BTC)

The correct answer for your personal situation depends heavily on your jurisdiction
and especially the terms of your mortgage provider. There may be obstacles that
you currently don´t see at all, like penalties for early repayment of your outstanding mortgage
or other legal issues.

In my country there are several mortgage providers where you aren´t allowed to
repay your mortgage before completion of a fixed time-length.

Where I come from there are also penalties on early repayment unless you pay off the full sum and terminate the mortgage all together.
But yes having a financial expert look into your specific situation is advisable.

Having a debt that huge is overwhelming and to wait for several years before fully paying it off would be such a headache. I would have a hard time sleeping at night knowing that I have a debt and that I'd have to pay for years to come. So that you'd have your peace of mind, I think its worth to already pay off that debt.

I agree that it would seem like a waste to throw that 15BTC but in fairness, you've already profited from it. To be able to hold it that long is already amazing and surely, it has accrued since then. As a firm believer that future is bright for Bitcoin, keeping 1BTC or 2 would be ideal for long term investment.

As long as we are confident with decisions we make, taking mortgage and investing in btc isn't wrong thing. The most important is to learn the risks that will occur in the future.

If you think you will be able to manage then why sell bitcoins for it you did buy it at a really low rate congrats for that but if it's not required don't sell bitcoin is like a asset and we try our best not to sell our asset at any time it's better if you hold you coins and sell only when it's really required

If it was much more of your stack, like 60% or above then I would hesitate to do so. But if it's only 20% of your stash then why not? What have you got to lose? If BTC goes to moon you still have a load left, yet if it doesn't/or takes longer than expected, then at least your mortgage is paid off.

Remember getting your mortgage paid off is a distant dream for many, it's a nice goal and if 20% of my stack would do it, I would do it in an instant.

Very wise words....

I'm selling if I can buy a house for half my stack :D

If your debt is only 20% of your debt then just pay it, it is not good to have a debt, I know if you hold longer then maybe you can spend less than 20% to clear your debt, but bitcoin price is up and down, so you only can speculative about it, just pay it and then focus on other things

Let me put in a other way, sometimes people  will preceive it wrong when they sell something. 

Will you take out a mortgage on your house to buy bitcoins?
If the answer is yes, then don't sell your coins, otherwise you should consider selling it. 

Note:  Shorting equity in a house is dual(opposite) transaction of paying off a loan, so the calculations should be in theory should be the same.  A human bring is a strange thing, and the notion of buying and selling affects it.   

Nobody has talked about tax exemption here, so I suppose it’s not that common in other countries. In my country, most people who have a mortgage get a 15% discount on income tax, up to an annual limit, so many investors who could redeem their mortgages just pay back up to a certain amount annually in order to get tax deductions.

I think this is very important and if this happens in your country you should make your numbers because that % return you are getting on your money is risk free.

Agree. People are looking at this purely in financial terms, but of course your home is your shelter, the place you go to feel safe. And the feeling you get when you own it free and clear of a mortgage is priceless.

I guess I'll go against the grain of literally everyone here that has posted so far.

1. Do you believe that Bitcoin will still be around and growing exponentially 10 years from now? 20?

If the answer is yes, then

2. Do you believe that the bitcoin price would at a minimum, increase 5% or greater per year on average, handily beating your current mortgage interest rate?

If again the answer is yes, then

HODL your bitcoin as an investment and keep paying your mortgage payment. Payoff your remaining mortgage years down the road with your bitcoin, and live on the rest.

Does your monthly pension can cover for monthly mortgage and expenses? If it does, you can hold off paying your debt. I will prioritize my investment in bitcoin over the mortgage. But if you are barely making the payment, then paying it off with your bitcoin is a good idea. Peace of mind is priceless.

Uhh, what? Who's they? And what does this thought mean?



I don't think you understand how debt works. The money printing doesn't make his 50k debt go to 5k, it actually makes that 50k debt go up (in theory) because his spending power goes down with fiat money. Meaning while his monthly payment to that mortgage stays the same what he can buy with the rest of his income goes down because prices get higher as the currency depreciates.

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To the OP, it depends on how much this mortgage is interfering with your ability to pay for other things or live comfortably. What % is the mortgage payment of your monthly income? What's the interest rate?

If you don't want to share those details I'd use the BTC to pay off the mortgage and then if you feel you're missing the BTC you can buy back into  it with the amount of money you were previously paying to your mortgage. And in this scenario you'll be keeping all of that payment whereas currently a lot of it goes to service the interest you owe, i.e., the bank!

This is the most lucrative option for you. Lose the debt and the interest payments immediately. Then rebuild your bitcoin wealth if/as you need to.

What a great position for you to be in, congratulations!

I can't believe I didn't think of this before, and I didn't see anyone mention it yet.

Have you considered redeeming your Bitcoin Cash to pay off a hefty portion of your mortgage, I believe it would pay off about 75% of what you have left. No need to touch your Bitcoin or at least doesn't require you to touch as much of your Bitcoin.

This could be the best answer!

You should not sell bitcoins to pay for your mortgage as bitcoin is your investment and you should never sell your investment. You should pay for the mortgage with your monthly salary even if you are left with very little money after paying the mortgage. On a second thought, your investment have increased more than 10 folds, so you can sell the gains and only keep the initial amount of money in bitcoins to yourself and then buy another investment with the profit made. But keep this thing in your mind that you must not sell an investment for paying your mortgage.

As suggested bitcoin is the one that has got promised growth periodically. So it is a must to have it as an investment rather than selling or cashing out for settling the mortgage. As stated make yourself into trading or some other form of investment portfolio where the capital should not get disturbed. The profit needs to be used for repayment requirements.

Nobody knows what will happen with the future price of bitcoin, but you know 100% that you will never pay the f'g banksters another dime of interest on your house, and that being foreclosed on is impossible. So, go with the sure thing.
Don't buy with more than you can afford to lose. Pay off your house and hold what you can afford to lose.

Indeed, if you mentally not stable, you cannot work smoth any thing and you will have trouble when you try more. Therefore, most of the jobs need you can keep calm first. That is a requirement when you working.

This right here. Compare the cost of keeping the mortgage to the expected return of the bitcoins. I strongly suggest hodling is going to be a far better result.

if the lessons are attention to today's crypto currency prices, then many users start to think about those or other options. Apparently, the unstable market has a very strong effect on users. Although I still doubt the right decisions about the mortgage.

This is the reason why I think you are right. Bitcoin seems to be getting traction since januari this year.
Why would you risk that by doing something else with your money? I honestly believe if we play are cards rights, we are set for life.

15 btc is only 20% of what he bought at $250. So if you do the math he pays off his house for free, and still has lots of profit coins. Why gamble?
No brainer pay off the house now and hold for retirement riches.
I think the newbie op may be trolling though, what's your wallet address so we know you aren't full of shit?

You do realize the price is $4k? 20x from here is $80k. The op buy in went 20x. Convince me this is comparable.

GREAT information guys! I'm loving the responses and they put everything into perspective. Also, I'm a little bit of a gambler and will throw $100 in Bitcoin on the board making stupid parlays once a week. This one was initially $100, but Bitcoin shot up and when it finally cleared, it paid $27,500!😳

https://nitrogensports.eu/betslip/5b02a6aWDAyZldSSGtpMjhJS2RKZGRpdkdVdz09/r/1530/

Awesome! I purchased in 2010 I believe. 3.25%. I'll HODL. Bitcoin should beat that interest rate!👍🏽

Touche'. And all of the USD printing should help me with the BTC/USD rate down the road. Hopefully...

I thought BCH would plummet to zero, so I traded them around $300 for ETH/DSH/OMG. 🤷🏽‍♂️

Not trolling. I was just nervous when we hit $3,000/coin and seriously thought about paying off my mortgage. Not lying about my coins, either. And I will never give out my Trezor address.

My approach is to sell 1 BTC every time I get excited about the price, and transfer the funds over as a principal only pay down on my mortgage.

That way if something horrid does happen to Bitcoin, I've at least got some benefit from it.  Plus it has the advantage of not telling too much in one year once and pushing myself up into a high capital gains tax rate.
 
Just sold one today, was excited to see the price back above $4K again!