johnsmith10012015
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September 23, 2017, 05:36:53 AM |
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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.
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Don Pedro Dinero
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The first decentralized crypto betting platform
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September 23, 2017, 08:37:45 AM |
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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.
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alyssa85
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CryptoTalk.Org - Get Paid for every Post!
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September 23, 2017, 10:26:53 AM |
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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.
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.
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Torque
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September 24, 2017, 02:54:02 AM Last edit: September 24, 2017, 03:05:46 AM by Torque |
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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.
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bamboylee
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September 24, 2017, 03:21:11 AM |
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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.
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HabBear
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September 24, 2017, 03:29:59 AM |
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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. Uhh, what? Who's they? And what does this thought mean? That said, let all the money printing evaporate the value of your 50K to 5K.
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.
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!
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HabBear
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September 25, 2017, 02:19:47 AM |
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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!
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TrueCryptonaire
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September 25, 2017, 03:23:33 AM |
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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!
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.
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KennyR
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September 25, 2017, 01:40:48 PM |
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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!
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.
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chesthing
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September 25, 2017, 02:24:57 PM |
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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.
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ButtCrack
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September 25, 2017, 03:54:23 PM |
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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.
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.
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Syke
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September 25, 2017, 06:24:57 PM |
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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.
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.
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Buy & Hold
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PancherBitCoin
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September 25, 2017, 06:45:40 PM |
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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.
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.
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Zaun
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September 25, 2017, 08:35:56 PM |
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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.
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. 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.
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chesthing
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September 26, 2017, 12:38:53 AM |
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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.
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. 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?
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chesthing
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September 26, 2017, 01:10:32 AM |
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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.
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. 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. You do realize the price is $4k? 20x from here is $80k. The op buy in went 20x. Convince me this is comparable.
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xPPx (OP)
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September 26, 2017, 04:39:11 AM |
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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.
Awesome! I purchased in 2010 I believe. 3.25%. I'll HODL. Bitcoin should beat that interest rate!👍🏽
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xPPx (OP)
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September 26, 2017, 04:42:21 AM |
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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. Uhh, what? Who's they? And what does this thought mean? That said, let all the money printing evaporate the value of your 50K to 5K.
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.
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! Touche'. And all of the USD printing should help me with the BTC/USD rate down the road. Hopefully...
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xPPx (OP)
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September 26, 2017, 04:44:44 AM |
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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!
I thought BCH would plummet to zero, so I traded them around $300 for ETH/DSH/OMG. 🤷🏽♂️
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