Author Topic: Paid off my mortgage  (Read 2716 times)

SugarMountain

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Paid off my mortgage
« on: July 28, 2017, 04:01:59 PM »
There wasn't that much left, so I just did it.  It is actually a little anti-climactic.

Miss Piggy

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Re: Paid off my mortgage
« Reply #1 on: July 28, 2017, 04:07:21 PM »
Awesomesauce!!! Congratulations!

Yeah, ours was a little anticlimactic as well. I envisioned a mortgage-burning party and the whole nine yards, but in reality, it was just an announcement with the family at Christmas. A relief nonetheless.

I know paying off the mortgage is a bit controversial on this forum, but for us, it was very much the right thing to do, and I'm so glad we did it. It was the big thing that kickstarted and motivated us toward FIRE before we even knew what FIRE was.

wtp1020

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Re: Paid off my mortgage
« Reply #2 on: July 29, 2017, 10:03:29 AM »
Congratulations SugarMountain!

Add me to the anti climatic group as well. I thought we'd feel a huge weight lifted by not having a mortgage, and while it was nice it turned out to be just another day. I had the day off and my husband was at work when the final payment cleared the bank. I texted him that our mortgage was paid in full, he replied Cool. I went to my favorite coffee shop and celebrated with a cup of coffee.

It's nice not to see that payment come out of our bank account!

minimalistgamer

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Re: Paid off my mortgage
« Reply #3 on: July 29, 2017, 12:44:32 PM »
Congratulations!

We paid off ours in January of this year. I felt absolutely great about doing so, but the only reason it felt a little bit anti-climatic was because I did not announce it in real life. Other than my wife, no one knows. Its sad that I can't talk to the rest my family about this but that's just how life is. They will not understand it, and once they know that I don't have a mortgage, they will have opinions on how I should spend my money.

It is a good way to destroy relationships. So I just kept it to ourselves. I also announced it on the Internet of course. lol.
I paid off my mortgage! You can read the details here -
https://minimalistgamer.blogspot.com/2017/01/paid-off-our-mortgage.html

Feel free to ask any questions.

Plugra

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Re: Paid off my mortgage
« Reply #4 on: August 03, 2017, 05:04:50 PM »
Congratulations on doing something that very few ever manage to do!

We did pay off our mortgage a few years ago, just as our youngest was starting college.  I was not able to tell anyone at the time because, as others have said, it is not considered a normal thing to do.  My parents were paying one mortgage after another for fifty years and never built up any equity ... (sigh).

Socmonkey

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Re: Paid off my mortgage
« Reply #5 on: August 03, 2017, 07:25:16 PM »
Oh wow, that's great!

Your monthly cashflow is about to go way up! Are you already maxed out on tax advantaged retirement accounts? What are your plans on using this freed up cashflow?

You own your home. That's security right there. Knowing that you can basically get just about any job and be able to cover the property taxes, insurance, maintenance, utilities, and food you need to live. Plus you can hit FI with a much smaller amount, as your housing expenses have gone way down.

I will join the mortgage payoff club one day. :D

I created by blog www.DoublingDollars.com on January 13th, 2017. A (slightly above) average income family with two kids.

Sign up for Robinhood and get unlimited no commission stock trades. Use this link and we both get a FREE SHARE of stock while the offer lasts. http://share.robinhood.com/justine1

Babybalrog

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Re: Paid off my mortgage
« Reply #6 on: August 04, 2017, 09:54:45 AM »
It is actually a little anti-climactic.

I think only for now. The peace of mind and free cash flow will settle in soon.
“He was swimming in a sea of other people’s expectations. Men had drowned in seas like that.”
― Robert Jordan, "New Spring"

Lmoot

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Re: Paid off my mortgage
« Reply #7 on: August 07, 2017, 06:52:32 AM »
 Congratulations! I can kind of understand the anti-climatic feeling even though I haven't paid off my own mortgage yet. I have 40K left, but my mortgage is around $350; that's like some people's car payment. So it's not going to be some big change in life when I pay it off LOL it is currently a rental property, so it will be nice to keep the majority of the rent check for personal savings.

FIREby35

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Re: Paid off my mortgage
« Reply #8 on: August 07, 2017, 06:54:15 AM »
CONGRATS!

prognastat

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Re: Paid off my mortgage
« Reply #9 on: August 07, 2017, 09:45:07 AM »
Congrats, we haven't yet. The plan for us is to do it once our stache is built then switching to paying off the mortgage before FIRE.

lizzzi

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Re: Paid off my mortgage
« Reply #10 on: August 07, 2017, 12:43:23 PM »
Congratulations!. I have always been one who likes to buy a house outright (or pay off the mortgage ASAP), and then save and invest the amount I was putting into the mortgage. Maybe reward yourselves with something nice but not too pricey--or reward yourselves with one "mortgage payment" or whatever seems right for you--but then don't fall into the tar pit of lifestyle creep. Save that money!

Closer2theSKY

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Re: Paid off my mortgage
« Reply #11 on: August 08, 2017, 06:58:24 AM »
Congratulations!!!!

boarder42

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Re: Paid off my mortgage
« Reply #12 on: August 08, 2017, 05:05:58 PM »
Congratulations!. I have always been one who likes to buy a house outright (or pay off the mortgage ASAP), and then save and invest the amount I was putting into the mortgage. Maybe reward yourselves with something nice but not too pricey--or reward yourselves with one "mortgage payment" or whatever seems right for you--but then don't fall into the tar pit of lifestyle creep. Save that money!

Way to do it compound a bad financial decision with a second bad financial decision.
PM me about how to save 6% on your annual grocery Bill!

There is a 35k starwood bonus right now as well. PM me for the info.

lizzzi

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Re: Paid off my mortgage
« Reply #13 on: August 09, 2017, 06:24:00 AM »
Hey, boarder42--can you clarify what you mean?

DrF

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Re: Paid off my mortgage
« Reply #14 on: August 09, 2017, 08:06:03 AM »
Boarder42 means with today's low interest rates, ~4% or even lower if you locked in sometime over the past 4 years, you'd have been in a much better financial position if you'd invested those extra mortgage payments. Basically he's arguing (like the many threads that discuss mortgage vs no mortgage) that it's better to invest than pay off the mortgage.

Then, he's calling out the bad advice to "splurge" for accomplishing paying off the mortgage.

It's splitting hairs.

Paying off a mortgage is a wonderful thing! Congratulations OP! Internet people can get a bit pedantic over what's the ABSOLUTE BEST option vs many other perfectly reasonable paths to FIRE.

Cwadda

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Re: Paid off my mortgage
« Reply #15 on: August 09, 2017, 08:13:08 AM »
Boarder42 means with today's low interest rates, ~4% or even lower if you locked in sometime over the past 4 years, you'd have been in a much better financial position if you'd invested those extra mortgage payments. Basically he's arguing (like the many threads that discuss mortgage vs no mortgage) that it's better to invest than pay off the mortgage.

Then, he's calling out the bad advice to "splurge" for accomplishing paying off the mortgage.

It's splitting hairs.

Paying off a mortgage is a wonderful thing! Congratulations OP! Internet people can get a bit pedantic over what's the ABSOLUTE BEST option vs many other perfectly reasonable paths to FIRE.

To clarify, it's making the minimum payments vs. paying it off early.

lizzzi

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Re: Paid off my mortgage
« Reply #16 on: August 09, 2017, 08:26:59 AM »
Oh, right, DrF.  I just read a lot of boarder42's comments on the DONT Pay Off Your Mortgage thread elsewhere on this site. It is a classic, ongoing discussion with many viewpoints pro and con. I do get it. It will go on forever and we'll never have consensus on that one.

For me, with other money to invest--not just the mortgage payment--my preference is to have a paid-off mortgage. And I love the psychological feeling of owning...really owning..my house and land. It's mine--not the bank's. So I'm on the same page with the OP--it's a great accomplishment, I think. I do get the financial ins and outs and understand why some people vote for keeping a low interest-rate mortgage.

But good grief, on my "splurging" comment--lighten up, people! It doesn't have to be anything big--it could be an ice cream sundae! Sheesh.

SugarMountain

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Re: Paid off my mortgage
« Reply #17 on: August 09, 2017, 10:58:50 AM »
Oh, right, DrF.  I just read a lot of boarder42's comments on the DONT Pay Off Your Mortgage thread elsewhere on this site. It is a classic, ongoing discussion with many viewpoints pro and con. I do get it. It will go on forever and we'll never have consensus on that one.

For me, with other money to invest--not just the mortgage payment--my preference is to have a paid-off mortgage. And I love the psychological feeling of owning...really owning..my house and land. It's mine--not the bank's. So I'm on the same page with the OP--it's a great accomplishment, I think. I do get the financial ins and outs and understand why some people vote for keeping a low interest-rate mortgage.

But good grief, on my "splurging" comment--lighten up, people! It doesn't have to be anything big--it could be an ice cream sundae! Sheesh.

You also can theoretically earn more by having 100% stock portfolio with 0 cash and 0 bonds, but that doesn't necessarily mean it's a good idea.

iowajes

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Re: Paid off my mortgage
« Reply #18 on: August 09, 2017, 11:17:20 AM »


But good grief, on my "splurging" comment--lighten up, people! It doesn't have to be anything big--it could be an ice cream sundae! Sheesh.

Since you suggested one mortgage payment, that is a hell of an ice cream sundae :)


lizzzi

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Re: Paid off my mortgage
« Reply #19 on: August 09, 2017, 11:28:47 AM »


But good grief, on my "splurging" comment--lighten up, people! It doesn't have to be anything big--it could be an ice cream sundae! Sheesh.

Since you suggested one mortgage payment, that is a hell of an ice cream sundae :)

I also said something about "something nice but not too pricey" and "whatever is right for you." Hmmm...the more I think about it, the more I'm getting hungry for ice cream.  : D

TVRodriguez

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Re: Paid off my mortgage
« Reply #20 on: August 09, 2017, 11:35:22 AM »
Congratulations, OP!  We've been mortgage-free for a couple of years now, and we love it.  Since our income has always been variable, it's really nice to have a dedicated lower monthly spending amount.

Vegasgirl

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Re: Paid off my mortgage
« Reply #21 on: August 10, 2017, 06:37:39 AM »
Congratulations !!!  One day we'll be in that club - but not for a while still.

WannaBFree

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Re: Paid off my mortgage
« Reply #22 on: August 10, 2017, 02:07:07 PM »
Congratulations! We paid our mortgage off earlier this year and felt the same way!. We haven't announced it either due to the same reasons as previous posters stated.
It feels better and better once time goes on though - once you start seeing that cash accumulate in your account every month!

YYK

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Re: Paid off my mortgage
« Reply #23 on: August 13, 2017, 02:28:57 PM »
It's splitting hairs.

Paying off a mortgage is a wonderful thing! Congratulations OP! Internet people can get a bit pedantic over what's the ABSOLUTE BEST option vs many other perfectly reasonable paths to FIRE.

Not paying of your mortgage can net you tens of thousands if not hundreds of thousands of dollars over 30 years depending on the size of the mortgage. I'd hardly call that splitting hairs.
But paying off your mortgage is still a worthwhile achievement as it's leagues ahead of being a consumerist sukka who has no savings and couldn't even imagine paying off the mortgage early.