I would not say it's a straw-man argument.lakpr wrote: ↑Tue Jun 08, 2021 5:38 pmIt is always implicitly understood that "free and clear" meant exclusive of property taxes, and no existing lien. Try not paying property taxes when you do have the mortgage, the reaction from the local taxing authority is going to be identical. Having mortgage or not does not change that, bringing that argument up is a strawman. With the mortgage you have an existing lien on the house, without the mortgage you don't.wordsmith11 wrote: ↑Tue Jun 08, 2021 5:32 pmMine is "I now own it 'free and clear'," well actually your local taxing authority begs to differ...Hyperchicken wrote: ↑Tue Jun 08, 2021 2:59 pm Mortgage pay-off threads are always such a good reading for learning about cognitive biases.
My favorite is mental accounting in "I paid off my mortgage so that now I have cash flow to fund X and Y and Z".
I think the point being made is that regardless of loan or no loan, a house has tax obligations that demand payment. So when one says "I feel great, I own my home free and clear, the bank can't take it away" that may be true, but it's a cognitive bias because if you fail to pay taxes, you can also lose your home (or at least be in a position where a lien makes it impossible to sell.)
The psychological state of feeling some type of emotional "freedom" from "owing anyone anything" is, when it comes to homeownership, a mirage. You continue to owe. You just don't owe the bank. For many people their r.e. taxes can approach the cost of their mortgage. I have no doubt I will feel great when I get rid of my $25k per year mortgage. But that's because I'll have one less large expense, not because I'll have some hazy sense of being free from owing anyone anything.