SMPL Money

Mortgages: Part 2

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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

    If you enjoyed this episode, please like, share, and subscribe to SMPL Money for more insightful discussions. Stay tuned for our next episode where we continue to unravel the complexities of finance in our lives.

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    SMPL MoneyBy SMPL Team