When we first got married, our first house cost $20,000.00. All I remember is we had to pay 3 points to get the loan down to 12.5%! [img]/forums/images/icons/shocked.gif[/img] We borrowed $18,000.00. If we would have payed it off over 30 years, we would have paid a total of $68,000.00 for a $20,000.00 house! [img]/forums/images/icons/shocked.gif[/img] [img]/forums/images/icons/shocked.gif[/img] [img]/forums/images/icons/shocked.gif[/img]

Needless to say, we paid it off very fast. Our 2nd house was also very inexpensive, so again, paid off very fast. Same thing when we bought our land. We are very fortunate that the cost of living in Northern Indiana is dirt cheap, thank goodness.

Now we are considering building a new home. Are there any advantages to paying a mortgage slowly VS paying off the house as fast as possible?

One thing I have heard is taxes. I know you can deduct the interest from the taxes, but on our last three mortgages, the interest never exceeded our standard deductions. We itemized several years in a row and the closest we ever came was $14.00 less than the standard deduction. It wasn't worth the aggravation keeping the books and all that work and we came up short of the giveaway. [img]/forums/images/icons/mad.gif[/img]

Another thing I have heard is interest rates. If you can put the money to work and make more in interest than the mortgage costs you, you should do it because you are using someone else's money to work for you. If this is possible, it sounds too good to be true. Is it?

So, can someone explain to me in simple terms any advantage to having a mortgage VS paying it off as fast as possible. I would really appreciate it. Also, any links to good reading on this subject, or book suggestions would be appreciated.

Thanks.