Author Topic: DONT Payoff your Mortgage Club  (Read 46040 times)

talltexan

  • Handlebar Stache
  • *****
  • Posts: 1235
Re: DONT Payoff your Mortgage Club
« Reply #500 on: December 28, 2017, 01:44:24 PM »
can you clarify boarder, these are "prepaid" payments? So you just send the money now, and call them your 2/1, 3/1 payments?

boarder42

  • Walrus Stache
  • *******
  • Posts: 6359
Re: DONT Payoff your Mortgage Club
« Reply #501 on: December 28, 2017, 01:59:59 PM »
There was clarification in another thread that technically you cannot do this so I just paid Jan today and will not do Feb.
My Miles Journal -Learn to Manufacture spend(MS)

Best super bonuses on Credit cards right now

1. Delta Gold 60k miles Ends 1/31/2018
2. Delta Platinum - 70k miles - Ends 1/31/2018

Delta Business Gold - Ends 1/31/2018

SW Plus Card 50k Bonus

Helvegen

  • Pencil Stache
  • ****
  • Posts: 518
  • Location: PNW
Re: DONT Payoff your Mortgage Club
« Reply #502 on: December 31, 2017, 04:11:40 PM »
Three paycheck month. Since I was already a month ahead on the mortgage, I went ahead and sent the most of the payment to Vanguard. The rest went into the house/car repair slush fund.

It was tempting to do an extra principal payment though.

talltexan

  • Handlebar Stache
  • *****
  • Posts: 1235
Re: DONT Payoff your Mortgage Club
« Reply #503 on: January 03, 2018, 09:19:27 AM »
I'm confused about why we are celebrating pre-paying a mortgage on the "DON'T Payoff your mortgage Club" thread. It doesn't seem as though the actions people are describing here will have the results that people claim they will have.

boarder42

  • Walrus Stache
  • *******
  • Posts: 6359
Re: DONT Payoff your Mortgage Club
« Reply #504 on: January 03, 2018, 09:39:15 AM »
I'm confused about why we are celebrating pre-paying a mortgage on the "DON'T Payoff your mortgage Club" thread. It doesn't seem as though the actions people are describing here will have the results that people claim they will have.

It was half a joke but also serious because if the IRS law was different would have made mathematical sense to pre pay mortgage payments to get the deduction in 2017 - if it worked this way but it didnt.  its not paying extra to principal its just paying a few months in advance to get what would have been around a 20% ROI with tax savings for me.
My Miles Journal -Learn to Manufacture spend(MS)

Best super bonuses on Credit cards right now

1. Delta Gold 60k miles Ends 1/31/2018
2. Delta Platinum - 70k miles - Ends 1/31/2018

Delta Business Gold - Ends 1/31/2018

SW Plus Card 50k Bonus

talltexan

  • Handlebar Stache
  • *****
  • Posts: 1235
Re: DONT Payoff your Mortgage Club
« Reply #505 on: January 03, 2018, 02:04:29 PM »
understood.

TexasRunner

  • Pencil Stache
  • ****
  • Posts: 550
  • Location: Somewhere in Tejas
Re: DONT Payoff your Mortgage Club
« Reply #506 on: January 05, 2018, 09:26:49 AM »
Another minimum payment!

124 months remaining!
"The mathematical formula for the number of motorcycles you need is   x+1, where x is the number of motorcycles you currently have."

TexasRunner

  • Pencil Stache
  • ****
  • Posts: 550
  • Location: Somewhere in Tejas
Re: DONT Payoff your Mortgage Club
« Reply #507 on: January 05, 2018, 09:37:00 AM »
FYI to all,

For those of you that have prepaid principal and want to know the number of remaining payments at minimum payment, there is a great calculator at this link.

https://financial-calculators.com/loan-calculator

You can put in all the values and enter "Number of Payments" at 0, and go to the advanced options to set your original start date on the loan and it will calculate out the 'non-standard' amortization table.

Take the number of payments and subtract the number you have already made and thats the number remaining.

Also, you can just use today's date and the loan payment amount and rate and it will calc out the remaining months-  but the total interest paid will be wrong, just FYI.
"The mathematical formula for the number of motorcycles you need is   x+1, where x is the number of motorcycles you currently have."

Dicey

  • Walrus Stache
  • *******
  • Posts: 6705
  • Age: 59
  • Location: NorCal
Re: DONT Payoff your Mortgage Club
« Reply #508 on: January 05, 2018, 09:40:29 AM »
I'm confused about why we are celebrating pre-paying a mortgage on the "DON'T Payoff your mortgage Club" thread. It doesn't seem as though the actions people are describing here will have the results that people claim they will have.
I have no issues with pre-paying or even paying off a mortgage under the right circumstances.  Sometimes, no mortgage is the best choice. Hint: typically, it's after you have amassed a big ball o' money, not before. That's what the infamous "Do the math" refers to. It doesn't mean you can't kill a mortgage or pay cash for a house, it just means it's sub-optimal to do it first.

 
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

talltexan

  • Handlebar Stache
  • *****
  • Posts: 1235
Re: DONT Payoff your Mortgage Club
« Reply #509 on: January 08, 2018, 10:48:08 AM »
My wife and I reviewed our retirement plan a while ago, and she asked if our mortgage would be paid off. I replied that I was showing her pots of money that would add up to $2,200,000, so if she was worried about debt that would total 5% of that, then of course we could make that go away then.

Goldielocks

  • Walrus Stache
  • *******
  • Posts: 5049
  • Location: BC
Re: DONT Payoff your Mortgage Club
« Reply #510 on: January 14, 2018, 02:40:25 AM »
DH just brought up again that we should consider putting a large payment down on the mortgage...   I will have to run the numbers...   We've made an amazing amount in the markets this year, however, so it may be time to remove some of our profits..

boarder42

  • Walrus Stache
  • *******
  • Posts: 6359
Re: DONT Payoff your Mortgage Club
« Reply #511 on: January 14, 2018, 03:41:30 AM »
DH just brought up again that we should consider putting a large payment down on the mortgage...   I will have to run the numbers...   We've made an amazing amount in the markets this year, however, so it may be time to remove some of our profits..

This would be a bad idea. It's market timing
My Miles Journal -Learn to Manufacture spend(MS)

Best super bonuses on Credit cards right now

1. Delta Gold 60k miles Ends 1/31/2018
2. Delta Platinum - 70k miles - Ends 1/31/2018

Delta Business Gold - Ends 1/31/2018

SW Plus Card 50k Bonus

Le Barbu

  • Handlebar Stache
  • *****
  • Posts: 1002
  • Age: 45
  • Location: Lake Wobegon
  • We are all strong, handsome and above average
Re: DONT Payoff your Mortgage Club
« Reply #512 on: January 14, 2018, 02:16:42 PM »
DH just brought up again that we should consider putting a large payment down on the mortgage...   I will have to run the numbers...   We've made an amazing amount in the markets this year, however, so it may be time to remove some of our profits..

This would be a bad idea. It's market timing

B42, what is the market timing boundary? I have 185k$ mortgage now but 30k$ HELOC available. I could use it to buy index funds (VTI + VXUS) or wait to buy for cash over the next 3 years...

My actual leverage (debt/assets) is 17% now and this move would get me to 17.5%. My FI would increase from 78% to 80% wich is good but trivial...

HELOC @ 3%, expected returns @ 5-6%
"The real reason this blog exists, is simply to save the entire human race from destroying itself through overconsumption of its own habitat"

-MMM

boarder42

  • Walrus Stache
  • *******
  • Posts: 6359
Re: DONT Payoff your Mortgage Club
« Reply #513 on: January 14, 2018, 06:29:57 PM »
DH just brought up again that we should consider putting a large payment down on the mortgage...   I will have to run the numbers...   We've made an amazing amount in the markets this year, however, so it may be time to remove some of our profits..

This would be a bad idea. It's market timing

B42, what is the market timing boundary? I have 185k$ mortgage now but 30k$ HELOC available. I could use it to buy index funds (VTI + VXUS) or wait to buy for cash over the next 3 years...

My actual leverage (debt/assets) is 17% now and this move would get me to 17.5%. My FI would increase from 78% to 80% wich is good but trivial...

HELOC @ 3%, expected returns @ 5-6%

A HELOC is different than a mortgage the rates aren't fixed and they are callable debt. Risk is much different. Paydown time typically isn't 30years either. So it's not a question of market timing but a question what risk are you willing to take on with whatever HELOC terms you have.

Market timing is changing your IPS or whatever your investing plan is based on market conditions.
My Miles Journal -Learn to Manufacture spend(MS)

Best super bonuses on Credit cards right now

1. Delta Gold 60k miles Ends 1/31/2018
2. Delta Platinum - 70k miles - Ends 1/31/2018

Delta Business Gold - Ends 1/31/2018

SW Plus Card 50k Bonus

Canadian Ben

  • Pencil Stache
  • ****
  • Posts: 913
  • Age: 27
  • Location: Ottawa
Re: DONT Payoff your Mortgage Club
« Reply #514 on: January 15, 2018, 06:18:48 AM »
DH just brought up again that we should consider putting a large payment down on the mortgage...   I will have to run the numbers...   We've made an amazing amount in the markets this year, however, so it may be time to remove some of our profits..

This would be a bad idea. It's market timing

B42, what is the market timing boundary? I have 185k$ mortgage now but 30k$ HELOC available. I could use it to buy index funds (VTI + VXUS) or wait to buy for cash over the next 3 years...

My actual leverage (debt/assets) is 17% now and this move would get me to 17.5%. My FI would increase from 78% to 80% wich is good but trivial...

HELOC @ 3%, expected returns @ 5-6%

Why not go with CAD bank stocks instead? dividends are above your rate of HELOC so no matter what you should be fine?

Le Barbu

  • Handlebar Stache
  • *****
  • Posts: 1002
  • Age: 45
  • Location: Lake Wobegon
  • We are all strong, handsome and above average
Re: DONT Payoff your Mortgage Club
« Reply #515 on: January 15, 2018, 02:37:32 PM »
DH just brought up again that we should consider putting a large payment down on the mortgage...   I will have to run the numbers...   We've made an amazing amount in the markets this year, however, so it may be time to remove some of our profits..

This would be a bad idea. It's market timing

B42, what is the market timing boundary? I have 185k$ mortgage now but 30k$ HELOC available. I could use it to buy index funds (VTI + VXUS) or wait to buy for cash over the next 3 years...

My actual leverage (debt/assets) is 17% now and this move would get me to 17.5%. My FI would increase from 78% to 80% wich is good but trivial...

HELOC @ 3%, expected returns @ 5-6%

Why not go with CAD bank stocks instead? dividends are above your rate of HELOC so no matter what you should be fine?

I have enough exposure to Canadian stock market now (30%) and I usualy look for a total return when investing.
"The real reason this blog exists, is simply to save the entire human race from destroying itself through overconsumption of its own habitat"

-MMM