Need help : paying off house mortgage and maximizing points earning.
Dec 24, 2012, 4:06 pm
#1
Original Poster
Join Date: Apr 2009
Location: 787
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Posts: 1,306
Need help : paying off house mortgage and maximizing points earning.
Not sure if this is the right place to ask, but here’s my deal. Im getting ready to pay off leftovers of my mortgage – approximately 40K, and would like to maximize points earning potential.
Here’s what I have – 4 BB cards with 5K each load per month. Meaning I can pay 20K worth of payments from CC -> BB -> Mortgage -> Cash to pay CC Bills. It will take me 2 month to pay 40K thus BB fees + Interest, but I earn miles.
Do you see any other schemes to use 40K cash and earn more miles/points in more efficient /productive way?
Here’s what I have – 4 BB cards with 5K each load per month. Meaning I can pay 20K worth of payments from CC -> BB -> Mortgage -> Cash to pay CC Bills. It will take me 2 month to pay 40K thus BB fees + Interest, but I earn miles.
Do you see any other schemes to use 40K cash and earn more miles/points in more efficient /productive way?
Dec 24, 2012, 6:37 pm
#4
Join Date: Oct 2012
Posts: 208
Other than the idea of 'freedom', why would you ever pay off your mortgage? You have the lowest rate you can have on money, and you get a deduction on any interest you pay. I guess toward the end of your note you aren't paying much in interest, but still, it's something.
Dec 24, 2012, 6:46 pm
#5
Join Date: Dec 2012
Posts: 1
there are reasons to pay off a mortgage, like if you wanted to buy another property for investment then your monthly payments would drop a lot plus that much more in equity you can use for leverage to getting a new loan. Besides even 3% interest on a $100,000 home is $3,000 a year, not something i'd be looking forward to paying. =)
Dec 24, 2012, 6:47 pm
#6
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Dec 24, 2012, 7:14 pm
#7
Join Date: Apr 2008
Location: RDU
Posts: 5,239
Originally Posted by Bored_Russian:19916480
Its still "interest" on 40K and I hate paying banks. I have zero liability and always pay off my purchases. Never had any student loans either. Debt free
Dec 24, 2012, 7:23 pm
#8
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Join Date: Apr 2009
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Dec 24, 2012, 8:53 pm
#9
Join Date: Aug 2011
Posts: 866
Need help : paying off house mortgage and maximizing points earning.
People also forget this is a deduction, not a credit so it isn't like you get the interest mo say back. It only helps adjust your income. Each person needs to calculate the real cost/savings versus alternative investments. For me it just barely does NOT make sense to pay off my house, but it isn't a no-brainer.
Dec 24, 2012, 10:07 pm
#10
Join Date: Dec 2012
Posts: 145
People also forget this is a deduction, not a credit so it isn't like you get the interest mo say back. It only helps adjust your income. Each person needs to calculate the real cost/savings versus alternative investments. For me it just barely does NOT make sense to pay off my house, but it isn't a no-brainer.
Also freeing up your monthly payments will allow you to increase your chance at a loan for another property or a business loan. imo this is personally a no brainer, considering if he has $40,000 to pay off he should have some additional funds to cover things in case .... happens, but the amount of funds you need incase .... happens should be rather low if you don't have a mortgage
Dec 25, 2012, 9:54 am
#12
Join Date: Aug 2011
Posts: 866
People also forget this is a deduction, not a credit so it isn't like you get the interest mo say back. It only helps adjust your income. Each person needs to calculate the real cost/savings versus alternative investments. For me it just barely does NOT make sense to pay off my house, but it isn't a no-brainer.
Also freeing up your monthly payments will allow you to increase your chance at a loan for another property or a business loan. imo this is personally a no brainer, considering if he has $40,000 to pay off he should have some additional funds to cover things in case .... happens, but the amount of funds you need incase .... happens should be rather low if you don't have a mortgage
Dec 25, 2012, 10:16 am
#14
Join Date: Oct 2000
Programs: DL DM 2MM, AA Gold MM, Hilton LTD, Marriott LTP, Hertz PC
Posts: 639
Having a paid off mortgage on your home is one of the most secure things to have. People talk about low rates and better returns, but not the risk factor in virtually any of those higher rates of returns. The piece of mind I think lowered my blood pressure 20 points.
Dec 25, 2012, 10:26 am
#15
Moderator: Travel Buzz
Join Date: Aug 2012
Location: Sunny San Diego
Posts: 3,099
It might be easier to use a debit card attached to a bank account. Citi bank, Suntrust and another bank all have points earning checking accounts. So far I've only seen .5 mile per dollar, but I am thinking of investigating this option myself. My family buys and sells a couple of houses every year, but I really can't see an escrow company happily using a debit card to fund 100 or 200K in purchase money funds. They have strict guidelines to prevent money laundering.
I do not believe the same restrictions would apply to paying down an existing mortgage with a debit card, but how exactly would you be doing this? Bringing the debit card to the branch office? Writing a check from your Bluebird account?
I do not believe the same restrictions would apply to paying down an existing mortgage with a debit card, but how exactly would you be doing this? Bringing the debit card to the branch office? Writing a check from your Bluebird account?