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Originally Posted by Hootie
Why would anyone with enough money to buy a house up front, in full, actually do it?!
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The only reason I can think of is if you are in a low tax bracket and your credit is so terrible (or you have no credit since you only deal in cash) that you have to take out an 8% mortgage. In that case... eh, for someone who is very nervous and faint-hearted about the market, paying it off is kind of like buying an 8% guaranteed CD, which isnt too bad.
If you have the ability to get a 5-5.5% mortgage and you are in the 25% or higher tax bracket, then paying it off early is just stupid. I wouldnt get a warm fuzzy feeling from paying off the mortgage so that I can be land-rich and cash-poor later on thinking about a reverse mortgage to get half of it back. I'm only interested in making as much money for my retirement as possible. A home is just a structure built on a patch of dirt where I can sleep without freezing or getting rained on.