Mortgages: Part 2

SMPL Money

Hosts: John and David Thompson

Episode Summary:
In this episode of SMPL Money, John and David continue their discussion on Ric Edelman’s article, "11 Great Reasons to Carry a Big Long Mortgage." In this part, they cover reasons 4 through 7, diving into the tax benefits, the impact of inflation on mortgage payments, and how mortgages can provide liquidity without selling your home.

What You'll Learn:

• Reason 4 & 5: The tax deductibility of mortgage interest and why it might not be as beneficial as you think for most people, given changes in tax laws and the standard deduction.
• Reason 6: How mortgage payments become easier over time due to inflation and increased income.
• Reason 7: The concept of "selling without selling," or how you can access your home equity through refinancing or a home equity line of credit without having to sell your property.

Timestamps:

• [00:00] Introduction to the episode and hosts
• [01:00] Overview of tax deductibility and its diminishing impact for most homeowners
• [03:00] Understanding itemizing vs. standard deductions
• [07:00] How inflation makes mortgage payments easier over time
• [10:00] The benefits of long-term fixed-rate mortgages in the U.S.
• [12:00] How to "sell without selling" by accessing your home equity
• [14:00] Advanced strategies for using home equity, including risk management and financial planning
• [15:00] Preview of the next episode covering the remaining reasons

Resources Mentioned:

• Ric Edelman’s Article: 11 Great Reasons to Carry a Big Long Mortgage
• Further reading on mortgage interest and tax deductibility

Connect with Us:
Reach out to John and David with your questions or feedback. SMPL Mortgage

Follow us on social media for updates and more insights. @smplmortgage

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