The Money Mustache Community
General Discussion => Throw Down the Gauntlet => Topic started by: Gardo on August 06, 2016, 04:27:12 PM
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Hi guys,
I'm looking for folks to share mortgage payment journey with similar situation.
To be a member of the Club, which we can shorten to MPC125, the requirement is :
YOUR CURRENT MORTGAGE PRINCIPLE BALANCE MUST BE BETWEEN $100K-$149k.
This gives Club members a better bonding experience as we belong in the same similar range of debt VS people who either have bigger or smaller debt.
The Required First Post should follow this pattern:
Starting Mortgage Debt : $ (must be between $100K-$149K)
Beginning Mortgage Debt This Month: $
Paid Mortgage Debt This Month : $
Ending Mortgage Debt : $
****Descriptive Text *****
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Starting Mortgage Debt : $122,500
Beginning Mortgage Debt This Month: $122,500
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $120,500
And with that, the MPC125 is formally founded.
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I work in percentages, so the balance shouldn't really matter.
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I work in percentages, so the balance shouldn't really matter.
You can covert them into $. Here, the balance matters because the MPC125 requires balance of nothing less than $100K and the only way to know that is if you know the $.
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Starting Mortgage Debt : $122,500
Beginning Mortgage Debt This Month: $122,500
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $120,500
And with that, the MPC125 is formally founded.
Beginning Mortgage Debt This Month: $120,500
Paid Mortgage Debt This Month : $1,500
Ending Mortgage Debt : $119,000
Where are the various emoticons on this site?
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I'm trying to target a milestone of $100K which would let me graduate from this Club but at the same time get me to 5 digit debt. Target date for that is 6/30/2017.
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Hi guys,
I'm looking for folks to share mortgage payment journey with similar situation.
To be a member of the Club, which we can shorten to MPC125, the requirement is :
YOUR CURRENT MORTGAGE PRINCIPLE BALANCE MUST BE BETWEEN $100K-$149k.
This gives Club members a better bonding experience as we belong in the same similar range of debt VS people who either have bigger or smaller debt.
The Required First Post should follow this pattern:
Starting Mortgage Debt : $ (must be between $100K-$149K)
Beginning Mortgage Debt This Month: $
Paid Mortgage Debt This Month : $
Ending Mortgage Debt : $
****Descriptive Text *****
I would race everyone with one hand tied behind my back but i wouldn't want to be crush everyone !!!! lol !!!! I just knocked out $115,000 in 23 short months !!!!! The next mortgage that I'm destroying is at about $138,000 !!!!! Maybe I will compete against myself since there is no real competitors out there !!!!! And I will be driving my 68 MPG Geo Metro to the bank everyday to pay the CHASE bank Gods !!!!! Heres a pic of my beautiful Metro !!!!
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Dammit.
My 5 mortgage balances are (net of offsetting cash):
$0
$74,000
$80,000
$256,000
$360,000
Guess I need to find a new club... :D
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Dammit.
My 5 mortgage balances are (net of offsetting cash):
$0
$74,000
$80,000
$256,000
$360,000
Guess I need to find a new club... :D
You remind me of myself. I also have 5 mortgages and in a week I will be down to 4 just like you. My 4 that are left are less than your 4 luckily.
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Mortgage $148,900
Paid: $1600
New Mortgage: 147,800
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I'll join but I can't wait to not be a member!
Starting Mortgage: $144,400
Ending Balance $132,110
I'd be curious to know what everyones equity is. I'm at about 13%. Started at ~6%. I can't wait to hit $121k and the PMI will be gone!
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Hi guys,
I'm looking for folks to share mortgage payment journey with similar situation.
To be a member of the Club, which we can shorten to MPC125, the requirement is :
YOUR CURRENT MORTGAGE PRINCIPLE BALANCE MUST BE BETWEEN $100K-$149k.
This gives Club members a better bonding experience as we belong in the same similar range of debt VS people who either have bigger or smaller debt.
The Required First Post should follow this pattern:
Starting Mortgage Debt : $ (must be between $100K-$149K)
Beginning Mortgage Debt This Month: $
Paid Mortgage Debt This Month : $
Ending Mortgage Debt : $
****Descriptive Text *****
I would race everyone with one hand tied behind my back but i wouldn't want to be crush everyone !!!! lol !!!! I just knocked out $115,000 in 23 short months !!!!! The next mortgage that I'm destroying is at about $138,000 !!!!! Maybe I will compete against myself since there is no real competitors out there !!!!! And I will be driving my 68 MPG Geo Metro to the bank everyday to pay the CHASE bank Gods !!!!! Heres a pic of my beautiful Metro !!!!
Welcome doug11 to MPC125! Everybody competes with no one but themselves! So take it easy or take it hard but most of all enjoy the ride!
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Dammit.
My 5 mortgage balances are (net of offsetting cash):
$0
$74,000
$80,000
$256,000
$360,000
Guess I need to find a new club... :D
... Or you can create something similar LOL
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Mortgage $148,900
Paid: $1600
New Mortgage: 147,800
Welcome moneysaver to MPC125! Enjoy the ride!
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I'll join but I can't wait to not be a member!
Starting Mortgage: $144,400
Ending Balance $132,110
I'd be curious to know what everyones equity is. I'm at about 13%. Started at ~6%. I can't wait to hit $121k and the PMI will be gone!
Welcome HotPotato to MPC125! Glad to see new members flowing in. Enjoy the ride. :)
To answer, mine is at 56%. Oh yeah, once the PMI is gone, great feeling.
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Beginning Mortgage Debt This Month: $120,500
Paid Mortgage Debt This Month : $1,500
Ending Mortgage Debt : $119,000
Where are the various emoticons on this site?
Beginning Mortgage Debt This Month: $119,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $118,000
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Beginning mortgage (2014): 129K
Current balance: 121K
I just changed my principal curtailment so that I am now chipping away $1,000 (and change) each month off the principal total. Fortunately for me I live in a low cost of living area. Purchased home for 160K, great schools and community. Annual taxes = $1,800.
My spouse and I each contribute $18,000 to 403(b)s, so there's only so much money left to fight the mortgage. I recently used my son's Legos to create a 3D chart for killing my mortgage. I have rows of 10, each 1x1 Lego represents 1K of my mortgage. To make it truly relevant, the bottom rows are green and represent current liquid assets. So, as of now the bottom 62 units are green. The remaining units are red, which can be broken off as the principal goes down. Or, red units can turn green as I acquire more liquid assets. Of course, green units could turn red if shit hits the fan and I need to buy a new furnace.
I'm not sure I have a strict goal to pay off the mortgage, it will depend on how great I feel about the market moving forward. For now I'm taking it one brick at a time.
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I'll join but I can't wait to not be a member!
Starting Mortgage: $144,400
Ending Balance $132,110
I'd be curious to know what everyones equity is. I'm at about 13%. Started at ~6%. I can't wait to hit $121k and the PMI will be gone!
Net loans $756,000
Property assets: $1,425,000
Equity: 47%
I probably have too much tied up in property and not enough in higher yielding shares.
Property yields after all costs are rooooobbish
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Starting Mortgage: $160,000
Ending Balance: $108,000
Equity:~44%
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Beginning Mortgage Debt This Month: $119,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $118,000
Beginning Mortgage Debt This Month: $119,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $117,000
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Beginning mortgage (2014): 129K
Current balance: 121K
I just changed my principal curtailment so that I am now chipping away $1,000 (and change) each month off the principal total. Fortunately for me I live in a low cost of living area. Purchased home for 160K, great schools and community. Annual taxes = $1,800.
My spouse and I each contribute $18,000 to 403(b)s, so there's only so much money left to fight the mortgage. I recently used my son's Legos to create a 3D chart for killing my mortgage. I have rows of 10, each 1x1 Lego represents 1K of my mortgage. To make it truly relevant, the bottom rows are green and represent current liquid assets. So, as of now the bottom 62 units are green. The remaining units are red, which can be broken off as the principal goes down. Or, red units can turn green as I acquire more liquid assets. Of course, green units could turn red if shit hits the fan and I need to buy a new furnace.
I'm not sure I have a strict goal to pay off the mortgage, it will depend on how great I feel about the market moving forward. For now I'm taking it one brick at a time.
Welcome to the Club CheapScholar! Nice visuals strategy on the Legos.
Normally I say "KEEP IT UP!" but for this Thread, it's apt to say "KEEP IT DOWN!" :)
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Starting Mortgage: $160,000
Ending Balance: $108,000
Equity:~44%
Welcome motiv8ted! Wow you're close to graduation. Good for you!
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Starting Mortgage: $160,000
Ending Balance: $108,000
Equity:~44%
Welcome motiv8ted! Wow you're close to graduation. Good for you!
Oh wow, I didn't realize that you graduate once you hit $100k. Well hopefully that will be early next year and then I can join the under $100k group once it gets created.
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Beginning Mortgage Debt This Month: $119,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $117,000
Beginning Mortgage Debt This Month: $117,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $116,000
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Starting Mortgage: $160,000
Ending Balance: $108,000
Equity:~44%
Nov 2016
Ending Balance: $102,464
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OK I'll play since I started getting more aggressive on my mortgage.
August
Ending Balance: $120,031
September
Beginning Mortgage Debt This Month: $120,031
Paid Mortgage Debt This Month : $1,919
Ending Mortgage Debt : $118,122
October
Beginning Mortgage Debt This Month: $118,112
Paid Mortgage Debt This Month : $1,655
Ending Mortgage Debt : $116,447
I'll update November this week. Currently have about 60% equity. I should be able to accelerate my payments in 2017, as my oldest is graduating college this upcoming spring, I get a one year break as the next boy will have another year of high school.
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OK I'll play since I started getting more aggressive on my mortgage.
Welcome to the club jedsbud
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Beginning Mortgage Debt This Month: $117,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $116,000
Beginning Mortgage Debt This Month: $117,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $115,000
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OK I'll play since I started getting more aggressive on my mortgage.
August
Ending Balance: $120,031
September
Beginning Mortgage Debt This Month: $120,031
Paid Mortgage Debt This Month : $1,919
Ending Mortgage Debt : $118,122
October
Beginning Mortgage Debt This Month: $118,112
Paid Mortgage Debt This Month : $1,655
Ending Mortgage Debt : $116,447
I'll update November this week. Currently have about 60% equity. I should be able to accelerate my payments in 2017, as my oldest is graduating college this upcoming spring, I get a one year break as the next boy will have another year of high school.
Welcome jedsbud! I thought you were me. Close to 60% equity, and almost same debt. :D
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November
Beginning Mortgage Debt This Month: $116,447
Paid Mortgage Debt This Month : $1,416
Ending Mortgage Debt : $115,031
December will be more of a challenge with taxes due, but an early bonus payment rumor has been floating around. Through August of this year I had written off the possibility of a bonus this year so I am prepared for the taxes, with or without a bonus. Should be an interesting month, hopefully my mortgage holder gets a bonus. :)
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Beginning Mortgage Debt This Month: $117,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $115,000
Beginning Mortgage Debt This Month: $115,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $114,000
Closing the 2016 Book! Merry Christmas everyone! :) Catch up with y'all next year.
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Oct 2017: $108,000
Nov 2017: $102,464
Dec 2017: $102,042.05
Im done for the rest of the year also. Hoping for an April or May graduation. Happy Holidays everyone.
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Nov 2016 balance: 120K
Dec 2016 balance: 119K
Been chipping away 1K in principal every month for a couple months now. If you are thinking about stretching to make this happen, I highly recommend it. Feels good! I auto pay through my checking account on the first of the month but I still elect to receive for the paper statement, which usually shows up in the mail box between the 17th and 23rd. I look forward to getting the statement and I'm pretty bummed out everyday it's not there. It arrived today and I was thrilled to compare it to last month's statement.
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
My answer is paying the 'lender directly' is better than 'saving the money and paying it own in one lump sum'. Your mortgage interest is based on your principle balance. So the earlier you can pay down the principle the less interest you will incur. I have two mortgages on my house, and I pay extra principle every Monday on the smaller and higher interest account. Sometimes more sometimes less depending on the spending for the week. But if I look at the mortgage balance every day it will increase slightly as interest is applied daily.
The exception would be is if you could earn an interest rate above your mortgage rate during the saving period in order to pay a lump sum later. And even this may not be a wise decision.
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Beginning Mortgage Debt This Month: $115,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $114,000
Closing the 2016 Book! Merry Christmas everyone! :) Catch up with y'all next year.
Opening the 2017 Book a little early guys! Happy New Year everyone!
Beginning Mortgage Debt This Month: $114,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $113,000
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
All depends on your mortgage rate and balance, and what kind of return you think you can get investing to build your funds. I plan on paying extra on my mortgage until it's at about 50K and then paying it off with some money/investments. Although, if at that point, I feel the market is hot I'd keep the money in investments.
Some posters on this forum think it's a bad idea to pay down your mortgage because the rate is typically low. I see that math, but I also want the peace of mind of true home ownership.
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Beginning mortgage debt: $146,290
Mortgage payments this month:$1071.50
Ending mortgage debt: $146,057
Current equity: ~8%
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
It really just depends on your current situation. This is something I'm dealing with now. A few months ago I started saving some money to pay down the mortgage using the lump sum method. As others have mentioned, if you put your lump sum money in a savings account, you will lose money. If you invest it, you have a better chance of beating the mortgage rate. It also depends on your time table for paying off the mortgage. If its going to be a while, investing could work for you. If its shorter than a year, you would then have to pay higher taxes on your returns. If I could do it all over again, I would probably have just stuck with paying the lender, but that's me. Not paying the lender directly gives you the advantage of being more flexible with that money in the future.(In the case that you change your mind about paying off the mortgage, or you need the money.)
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December
Beginning Mortgage Debt This Month: $115,031
Paid Mortgage Debt This Month : $2,493
Ending Mortgage Debt : $112,538
Unexpected bonus helped this month, and provides momentum going into 2017. I am going to push to be under $100K by May.
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Opening the 2017 Book a little early guys! Happy New Year everyone!
Beginning Mortgage Debt This Month: $114,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $113,000
Beginning Mortgage Debt This Month: $113,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $112,000
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We got ours down to $32K last month. On Friday, we wired the balance to pay it off. We paid $257K in less than 9 years. I am so glad it is gone.
I logged on to Wells Fargo this morning just to see the "PD IN FULL" notation on our account.
Now to rebuild our emergency fund.
Keep the faith gang. You can do it.
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We got ours down to $32K last month. On Friday, we wired the balance to pay it off. We paid $257K in less than 9 years. I am so glad it is gone.
I logged on to Wells Fargo this morning just to see the "PD IN FULL" notation on our account.
Now to rebuild our emergency fund.
Keep the faith gang. You can do it.
Awesome!!! Congrats!!
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Current Home Value: $300,000
Original Mortgage Balance (June 2003): $225,000
Current Mortgage Balance (Jan 2017): $126,000
Monthly Principal Reduction Via Mortgage: $1000
Current Money Market Savings Account Balance (Ear-Marked For Mortgage Pay-Off): $119,000
Current Retirement Savings (401K, IRAs, etc.): $475,000
Approximate Net Worth: $800,000
Current Monthly Savings Rate: 60%
FIRE Date: Who knows?? Maybe never. But our options are pretty much unlimited.
Hello everyone. Great to see so many people like us who are searching for the peace of mind that comes with being 100% debt-free, including their mortgage. As many of you have noted this is not the path financial planners (and most people on this forum) would suggest but it's the path we are choosing on our road to FIRE. I'm typically just a voyeur on the MMM forum but have decided to join this thread because it helps to have support when sticking to a principle that many consider way too conservative. I just wish I had stumbled upon it sooner because we are nearing the end of our journey...
Two years ago my wife and I decided we wanted to pay off our mortgage early (we are in our mid-40s). We had already been saving for a number of years to our retirement accounts and felt it was time to knock out the mortgage. As is my nature I researched the topic thoroughly and the plan that seemed to make the most sense for us was to use the money-market savings account (MMSA) option. With this option, instead of paying down the mortgage principal every month (like it appears most in here are doing) we put our funds into the MMSA earning 1%. This has allowed us to remain very liquid in case of emergency. We understood this was a very conservative path which is why we placed a high priority on doing it quickly. This meant really focusing on our savings rate. Today we are right at a 60% savings rate (with a family of 3). In two years we've gone from $0 to $119,000 in our MMSA. We could pay off the mortgage in a couple of months but we are planning to wait until the end of summer. This way, after the large lump sum mortgage payment, we will have enough additional funds set aside to buy 2 newer (used) cars in case ours break down beyond repair (mine is a 12 yr old Honda Civic with 182K miles and my wife's is a 9 yr old Toyota Camry with 162K miles).
As you can imagine, we are counting the days. The thought of being 100% debt-free is mind-bottling. You know, where you mind gets all trapped up in a bottle? Anyone catch that Blades of Glory reference? Anyway, I'm hoping our story adds some resolve and commitment to your own individual plan - especially on days like today when the market is hitting all time highs. As MMM often puts it, this site is more about finding efficient happiness than it is about personal finance. We belong to a more conservative group of Mustachians that put being debt-free as one of our highest priorities. It's a simplistic approach with little downside. Kudos to us for focusing on this crazy principle instead of a $5 latte!!
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Beginning mortgage this month: $148,447
Paid Mortgage Debt this month: $1000
End of the month mortgage balance: $147,447
I am not sure I will pay this off in 5 years (that would be nice) but no matter what it will be done in 10. I have a 11.5 years left (on a 12 year mortgage) at 2.875%
Good luck to everyone.
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Wow, lochi. I'm super impressed. Thanks for sharing the MMSA idea with us. I'm about 10 years behind you in age but I'm on a path to be right about where you are in my mid 40s. Truly inspiring. I'd rather sleep like a baby in a home I actually own and have a half mil in retirement accounts than $5 lattes for sure!
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Wow, lochi. I'm super impressed. Thanks for sharing the MMSA idea with us. I'm about 10 years behind you in age but I'm on a path to be right about where you are in my mid 40s. Truly inspiring. I'd rather sleep like a baby in a home I actually own and have a half mil in retirement accounts than $5 lattes for sure!
Great to hear we've inspired you CheapScholar. Yes, the balances on our accounts are nice, but the number we're most proud of is the 60% savings rate. As you know, this is the cornerstone of the MMM philosophy and it's sheer genius in my opinion. Finding happiness at this high savings rate has been an amazing journey. We've benefited financially, physically, mentally and spiritually. About the only area that has taken a step backward is socially but that's only because we've had a hard time finding like-minded people. Keep up your own good work and most of all keep up your dedication. Shoot me a message if you ever need someone to talk to.
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Wow, lochi. I'm super impressed. Thanks for sharing the MMSA idea with us. I'm about 10 years behind you in age but I'm on a path to be right about where you are in my mid 40s. Truly inspiring. I'd rather sleep like a baby in a home I actually own and have a half mil in retirement accounts than $5 lattes for sure!
Great to hear we've inspired you CheapScholar. Yes, the balances on our accounts are nice, but the number we're most proud of is the 60% savings rate. As you know, this is the cornerstone of the MMM philosophy and it's sheer genius in my opinion. Finding happiness at this high savings rate has been an amazing journey. We've benefited financially, physically, mentally and spiritually. About the only area that has taken a step backward is socially but that's only because we've had a hard time finding like-minded people. Keep up your own good work and most of all keep up your dedication. Shoot me a message if you ever need someone to talk to.
Ha, right on. I thought of this post again when driving to work today. There's a fancy Starbucks in my town and the drivethru was lined with shiny new SUVs. I'm surprised you are most proud of the savings rate as opposed to your stache. That is one of the things I might disagree with MMM about, and I can't figure out the fascination with people here finding the number. I could earn 30K a year and save 80%, but I wouldn't be making much progress. Conversely, my wife and I could earn 145K per year and still make some dumb decisions and be well on our way to FIRE. I've always measured my monthly progress by dollars invested/saved/thrown at mortgage principal.
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Statement came today. Another 1K in principal paid off and another lego on my 3D mortgage payoff model makes its way back to my son's toy box.
Balance:
Dec 2016 119K
Jan 2017 118K
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Statement came today. Another 1K in principal paid off and another lego on my 3D mortgage payoff model makes its way back to my son's toy box.
Balance:
Dec 2016 119K
Jan 2017 118K
Awesome!
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Beginning Mortgage Debt This Month: $148,000
Paid Mortgage Debt This Month : $9,000
Ending Mortgage Debt : $139,000
Dayng you're the boss!
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Beginning mortgage this month: $148,447
Paid Mortgage Debt this month: $1000
End of the month mortgage balance: $147,447
I am not sure I will pay this off in 5 years (that would be nice) but no matter what it will be done in 10. I have a 11.5 years left (on a 12 year mortgage) at 2.875%
Good luck to everyone.
Welcome to the MPC125K Club 4n6. You can do it!
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Current Home Value: $300,000
Original Mortgage Balance (June 2003): $225,000
Current Mortgage Balance (Jan 2017): $126,000
Monthly Principal Reduction Via Mortgage: $1000
Welcome Lochi21. Wow 2003 I remember earning less than $10K a year which continued well into 2005 for me. 2006 was the big jump to $40K a year salary for me.
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Beginning Mortgage Debt This Month: $113,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $112,000
Beginning Mortgage Debt This Month: $113,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $111,000
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Hey guys. Congrats on the progress I'm seeing in here! You're all motivating the hell out of me!! I'll post up my monthly savings numbers in a few days.
CheapScholar - Bender's link to MMM's article is spot on - it really comes down savings rate if your goal is early retirement. But it sounds like your goal right now is mortgage elimination and that's awesome. Keep working hard, saving as much as possible and post up those monthly numbers. There is nothing wrong with laser-focus on debt elimination - especially at an early age. Many CFPs would say you're missing some valuable early compounding years but I honestly believe you are hard-wiring some neural pathways with regards to debt aversion that will make your financial life very comfortable.
....and for God sakes would everyone in here please yell NO EFFING WAY every time they drive past a Starbucks on their way to work!!
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Thanks, Lochi. And thanks to everyone on this thread - it is inspiring. Lochi, I sometimes joke that I'm only half stache. In addition to killing my mortgage, my wife and I do max out retirement accounts - saving 49K per year in those combined. We also invest a few bucks here and there when we can. I live in a way that is very frugal, but I do manage to blow a lot on travel.
All that said, my FIRE date is set at 2030. I've done the math a thousand times based on the number of dollars we save every year and the figures are solid. That's why I never bothered figuring out the savings rate, but perhaps I should just to see where I'm at.
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Really great to hear Cheap! Keep up the great savings and don't beat yourself up for some fun travel with those types of savings numbers. it's the people who put travel in front of saving that need to wake up.
Regarding the savings rate topic. To be honest, I didn't do it at first either. But now after having it done it I have found it invaluable. For me, it made me look at every line item of my monthly budget and ask some serious questions. Questions like, "Is this necessary?" "Can I make this cheaper and still be happy?" etc. I honestly think most people don't do the exercise because they really don't have a meticulous monthly budget.
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We have a family budget, but it only covers fixed expenses. There's always something unexpected, usually the costs of raising our child. One reason I neglect figuring out my savings rate is it seems there are numerous formulas floating around the MMM forum. For example, my employer mandates that I put 5% of my salary in my 403b. But that is pretax. Do those dollars count as savings? Also, does the $1,000 I chip away at my mortgage principal every month count? $200 of that is forced by means of my set payment, $800 is the curtailment I elect to make.
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January 2017
Beginning Mortgage Debt This Month: $112,538
Paid Mortgage Debt This Month: $2,312
Ending Mortgage Debt: $110,226
This is a combo of two mortgages. My main mortgage is sitting just under $90K with a very good interest rate, my second mortgage is at a much higher rate and has a little over $20K left. The additional principle I am paying is on the second mortgage. This second mortgage is going to be eliminated this year.
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We have a family budget, but it only covers fixed expenses. There's always something unexpected, usually the costs of raising our child. One reason I neglect figuring out my savings rate is it seems there are numerous formulas floating around the MMM forum. For example, my employer mandates that I put 5% of my salary in my 403b. But that is pretax. Do those dollars count as savings? Also, does the $1,000 I chip away at my mortgage principal every month count? $200 of that is forced by means of my set payment, $800 is the curtailment I elect to make.
Cheap - I would definitely count that 403b but you just need to find the formula that you think is most accurate. There are many discussions on the topic in the forum. I count the monthly principal amount on my mortgage for instance while some do not. Pick a formula you think is right and crunch the numbers.
Regarding your budget for fixed expenses only and not the incidentals and kids - I would say you have some huge opportunities here. This is where most people stop and fail to dig deeper. I have a kid too and budget for everything. Your budget will take some time to create and will be a work in progress for a while but my line items for each category are pretty solid now. I have a nice little Google Sheets spreadsheet I could share with you if you'd like? What I like is that if I have already used up my budget for kid's clothing allowance for the month I get to say "No". And if I can't say no then I tap into funds I have set aside for leisure or whatever for the month. The bottom line is everything is tracked. I know that can sound daunting but it's really not that hard once you get into the habit.
Gotta run. Talk soon.
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Beginning Mortgage Debt This Month: $113,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $111,000
Beginning Mortgage Debt This Month: $111,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $110,000
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Mortgage Balance: $125,574
Mortgage Savings This Month: $4500
Mortgage Saving Account (MMSA) Balance: $123,707
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
All depends on your mortgage rate and balance, and what kind of return you think you can get investing to build your funds. I plan on paying extra on my mortgage until it's at about 50K and then paying it off with some money/investments. Although, if at that point, I feel the market is hot I'd keep the money in investments.
Some posters on this forum think it's a bad idea to pay down your mortgage because the rate is typically low. I see that math, but I also want the peace of mind of true home ownership.
Yeah, I want the peace of mind that comes from having shit loads of money in investments. Paying off the mortgage before investing comes at a steep cost, long term. Sad that too few take the time to learn and understand the math.
BTW - There is no such thing as "true home ownership". There will always be taxes, utilities and maintenance. All three have a propensity to increase over time. Worrying about paying those in my old age because I didn't amass enough in my working years is a place I am unwilling to go.
ETA: This advice is not directed to anyone in the great, frozen North. I have little understanding of how things work in Canada. Could be completely different there ;-). I freely admit I know nothing significant about curling, either.
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It sucks, I'd like to move nearer to my inlaws to get more help with the baby, but the place they live is awful (Inland Empire, literally the worst air quality in the country and way overdeveloped.) And the place we live now is pretty HCOL, so we can't just up and buy them a house here so that they can move. Been looking for a place to move to that's cheaper, but so far we can't decide on any place that would be comparable to what we have here (in the mountains right outside Santa Cruz). Any place with decent air quality seems to rain all year long =/
I feel you, MrsWhipple. I grew up in one and live within striking distance of the other. Are you approaching FIRE or do you work remotely so location doesn't matter? If so, have you considered the many mountain communities that ring the IE? Better AQ, less density, small town feel, etc. Spartana is an excellent resource, having researched and lived in same.
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
All depends on your mortgage rate and balance, and what kind of return you think you can get investing to build your funds. I plan on paying extra on my mortgage until it's at about 50K and then paying it off with some money/investments. Although, if at that point, I feel the market is hot I'd keep the money in investments.
Some posters on this forum think it's a bad idea to pay down your mortgage because the rate is typically low. I see that math, but I also want the peace of mind of true home ownership.
Yeah, I want the peace of mind that comes from having shit loads of money in investments. Paying off the mortgage before investing comes at a steep cost, long term. Sad that too few take the time to learn and understand the math.
BTW - There is no such thing as "true home ownership". There will always be taxes, utilities and maintenance. All three have a propensity to increase over time. Worrying about paying those in my old age because I didn't amass enough in my working years is a place I am unwilling to go.
ETA: This advice is not directed to anyone in the great, frozen North. I have little understanding of how things work in Canada. Could be completely different there ;-). I freely admit I know nothing significant about curling, either.
I also have a "shit load" of money in investments. My wife and I rack up $4,200 in 403b contributions every month alone. And we aggressively invest other dollars. There's an argument to be made that paying off your mortgage can serve as the "bond" portion of your portfolio. Especially for people on this thread who generally have lower priced homes. No one here is saying people shouldn't first max out tax advantaged accounts and have a strong portfolio before paying off a house.
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Beginning Mortgage Debt This Month: $111,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $110,000
Beginning Mortgage Debt This Month: $111,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $109,000
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Is there any advantage to paying the lender directly vs saving the money and paying it down in one lump sum?
Thanks-
All depends on your mortgage rate and balance, and what kind of return you think you can get investing to build your funds. I plan on paying extra on my mortgage until it's at about 50K and then paying it off with some money/investments. Although, if at that point, I feel the market is hot I'd keep the money in investments.
Some posters on this forum think it's a bad idea to pay down your mortgage because the rate is typically low. I see that math, but I also want the peace of mind of true home ownership.
Yeah, I want the peace of mind that comes from having shit loads of money in investments. Paying off the mortgage before investing comes at a steep cost, long term. Sad that too few take the time to learn and understand the math.
BTW - There is no such thing as "true home ownership". There will always be taxes, utilities and maintenance. All three have a propensity to increase over time. Worrying about paying those in my old age because I didn't amass enough in my working years is a place I am unwilling to go.
ETA: This advice is not directed to anyone in the great, frozen North. I have little understanding of how things work in Canada. Could be completely different there ;-). I freely admit I know nothing significant about curling, either.
I also have a "shit load" of money in investments. My wife and I rack up $4,200 in 403b contributions every month alone. And we aggressively invest other dollars. There's an argument to be made that paying off your mortgage can serve as the "bond" portion of your portfolio. Especially for people on this thread who generally have lower priced homes. No one here is saying people shouldn't first max out tax advantaged accounts and have a strong portfolio before paying off a house.
Yay for you for personally understanding where the horse goes. As to the bolded part, no, no, no! Far too few people understand this, because it simply isn't taught enough. It's also far more complex than "Kill all the debt", which is too simplistic. For some it also feels better faster because it takes a long time to realize the loss of compound interest gains. Many will never understand. They'll just feel the pinch of less money in retirement or more working years, or both.
I am not saying it is "wrong". I just want people to understand that there are more effective ways to deploy their soldiers. Isn't that what we all aspire to do here?
NOTE - Very impressive savings dollars, CS! Pre-FIRE, I never achieved anywhere near that much on a steady basis. I was straight commission a lot of my career, therefore my deposits were, um, chunkier. If you're not CS (or FI), reading this and despairing, don't be discouraged. I only managed to squeak over 100k once in my whole career. I was self-employed at the time, so the six-figure gross came with significantly higher SS taxes and operating costs, including self-paid healthcare. Ouch.
Achieving FIRE can be done on a lot less. Especially if you start saving and investing EARLY! Pay off the mortgage last and your future self will be amazed at your brilliance. Or not, it's up to you.
Finally, I step on this soap box repeatedly because I wish someone had sat my twenty-year-old self ass down and walked me through it using small enough words until I thoroughly understood. I could have hit FIRE at least a decade earlier, possibly more, as others have demonstrated.
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February 2017
Beginning Mortgage Debt This Month: $110,226
Paid Mortgage Debt This Month: $3,105
Ending Mortgage Debt: $107,121
Record debt payment for this month. I only started getting really interested in paying off/down the mortgage once I had maximized my retirement savings. I am blessed with a good paying job and finally hit that mark last year as I put more effort into retirement.
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Beginning Mortgage Debt This Month: $111,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $109,000
Beginning Mortgage Debt This Month: $109,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $108,000
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Beginning Mortgage Debt This Month: $109,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $108,000
Beginning Mortgage Debt This Month: $109,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $107,000
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With all due deference to this thread (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/), I'm going to work on paying off my mortgage since I suspect that the stock market may under-perform for the next few years. I'd rather batten down the hatches, cut my interest paid dramatically, and be debt-free sooner. My take is that a mortgage is the magic of compound interest working for the bank and against the borrower.
Just figured something out this evening. By breaking your monthly mortgage payment into a weekly (1/4 payment) you can shave several years off your mortgage (and save many thousands in interest) paying the same amount. Not sure why I have never thought of that before.
http://www.free-online-calculator-use.com/weekly-mortgage-payment-calculator.html (http://www.free-online-calculator-use.com/weekly-mortgage-payment-calculator.html)
Current Mortgage Balance: $102,425
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Still knocking off over $1,000 in principal every month. Balance down to 116K. My DW and I are contemplating increasing the curtailment to move even faster. I agree with sovereign. This market looks rather precarious. I'm sure the mortgage payoff haters will chime in about stock market averages and yada yada yada. If I make a few minor sacrifices I can own my house outright by my 40th birthday in 3.5 years.
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With all due deference to this thread (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/), I'm going to work on paying off my mortgage since I suspect that the stock market may under-perform for the next few years. I'd rather batten down the hatches, cut my interest paid dramatically, and be debt-free sooner. My take is that a mortgage is the magic of compound interest working for the bank and against the borrower.
Just figured something out this evening. By breaking your monthly mortgage payment into a weekly (1/4 payment) you can shave several years off your mortgage (and save many thousands in interest) paying the same amount. Not sure why I have never thought of that before.
http://www.free-online-calculator-use.com/weekly-mortgage-payment-calculator.html (http://www.free-online-calculator-use.com/weekly-mortgage-payment-calculator.html)
Current Mortgage Balance: $102,425
How are you doing this? Just making weekly payments. I don't think that works with all servicers since they won't apply the amounts until you hit a full payment. My servicer allows 2 payments per month under their bi-weekly plan. I probably need to set that up.
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With all due deference to this thread (https://forum.mrmoneymustache.com/throw-down-the-gauntlet/dont-payoff-your-mortgage-club/), I'm going to work on paying off my mortgage since I suspect that the stock market may under-perform for the next few years. I'd rather batten down the hatches, cut my interest paid dramatically, and be debt-free sooner. My take is that a mortgage is the magic of compound interest working for the bank and against the borrower.
Just figured something out this evening. By breaking your monthly mortgage payment into a weekly (1/4 payment) you can shave several years off your mortgage (and save many thousands in interest) paying the same amount. Not sure why I have never thought of that before.
http://www.free-online-calculator-use.com/weekly-mortgage-payment-calculator.html (http://www.free-online-calculator-use.com/weekly-mortgage-payment-calculator.html)
Current Mortgage Balance: $102,425
How are you doing this? Just making weekly payments. I don't think that works with all servicers since they won't apply the amounts until you hit a full payment. My servicer allows 2 payments per month under their bi-weekly plan. I probably need to set that up.
My mortgage company has an option to make additional principal payments on their website. My wife makes the regular mortgage payment and I have been making the occasional extra principal payment. Starting today, I'm making a weekly principal payment.
Breaking your mortgage payment into a weekly was just a theoretical, but now that I think about it the interest is still calculated monthly regardless if you are making weekly or bi-weekly payments so not very practical. Extra principal payments make a big difference. I decided to make it weekly every Friday so it just becomes a habit.
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OK, I'll Join:
Beginning Debt this month: 129,060
Payment: 2850(includes interest)
Ending Balance: 126,515
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Beginning Mortgage Debt This Month: $109,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $107,000
Beginning Mortgage Debt This Month: $109,000
Paid Mortgage Debt This Month : $3,000
Ending Mortgage Debt : $106,000
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Guys, there is a GRADUATION from MPC125 Club to MPC075 Club. I already created the thread.
Do drop us a note here when you are about to graduate so we can congratulate you ! :):)
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But, Gardo, do we really WANT to graduate? After all, we are a bunch of suckers for paying off our mortgages. Having mortgage debt is just so freaking great, and it's clearly your way of screwing a bank for 30 years. I don't even know how the banks stay in business since they clearly LOSE money on home loans!
Since mortgage debt is so great, I'm going to go buy a McMansion on a 30 year term. Financial independence, here I come!
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But, Gardo, do we really WANT to graduate? After all, we are a bunch of suckers for paying off our mortgages. Having mortgage debt is just so freaking great, and it's clearly your way of screwing a bank for 30 years. I don't even know how the banks stay in business since they clearly LOSE money on home loans!
Since mortgage debt is so great, I'm going to go buy a McMansion on a 30 year term. Financial independence, here I come!
It just makes sense to put additional some extra money towards debt. Others say invest it now and that works too.
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Beginning Mortgage Debt This Month: $109,000
Paid Mortgage Debt This Month : $3,000
Ending Mortgage Debt : $106,000
Beginning Mortgage Debt This Month: $106,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $105,000
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Tossing my hat in the ring:
Mortgage Balance: $116,550
Mortgage Savings This Month: $4600
Mortgage Saving Account Balance: $66,500
* Going the savings then payoff route as just started a new gig this year. ETA for payoff Oct -Dec 2017, variability due to works bonus program.
Tick tock.
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Welcome to the MPC125 Rcamp! That's a lot of savings you have there! Congrats! Don't forget to add the inflation (read: appreciation) of your house's market value.
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Beginning Mortgage Debt This Month: $106,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $105,000
Beginning Mortgage Debt This Month: $106,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $104,000
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Beginning Mortgage Debt This Month: $106,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $104,000
Beginning Mortgage Debt This Month: $104,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $103,000
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Current Mortgage Balance: $102,425 [3/22/17]
Update:
Current Mortgage Balance: $99,172
Good to finally be under $100K. :)
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Update:
Current Mortgage Balance: $99,172
Good to finally be under $100K. :)
CONGRATULATIONS FOR GRADUATING sovereign!
Please join the MPC75K.
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Beginning Mortgage Debt This Month: $104,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $103,000
Beginning Mortgage Debt This Month: $104,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $102,000
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Paying down mortgage before FI/RE to make a small withdrawal rate later:
Beginning Mortgage Debt This Month: $153,371 (sorry I cheated)
Paid Mortgage Debt This Month : $8487
Ending Mortgage Debt : $144,883
I game-ify the experience by setting goals and then working every two weeks with each new paycheck to beat the goal. It is what passes for pleasure in my cubicle. -ap
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Beginning Mortgage Debt This Month: $104,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $102,000
Beginning Mortgage Debt This Month: $102,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $101,000
Congratulations to all for paying through the 1st Half of 2017!!
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Beginning Mortgage Debt This Month: $102,000
Paid Mortgage Debt This Month : $1,000
Ending Mortgage Debt : $101,000
Congratulations to all for paying through the 1st Half of 2017!!
Bittersweet moment for me to leave you guys as I graduate to MPC075!!
Hope to see you there soon! :)
Beginning Mortgage Debt This Month: $102,000
Paid Mortgage Debt This Month : $2,000
Ending Mortgage Debt : $100,000
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Tossing my hat in the ring:
Mortgage Balance: $116,900
Mortgage Savings This Month: $5000
Mortgage Saving Account Balance: $86600
? ->Going the savings then payoff route as was laid off late last year, and gratefully started a better paying new gig less than 2 months later.
(https://www.google.com/imgres?imgurl=https%3A%2F%2Fi.imgflip.com%2Feb6.jpg&imgrefurl=https%3A%2F%2Fimgflip.com%2Fi%2Feb6&docid=6MQ2ZmmAOnCMUM&tbnid=93B3c5W0qNS8YM%3A&vet=10ahUKEwinuJ_E0IvVAhVB4D4KHaMZBY8QMwjSASgDMAM..i&w=700&h=468&bih=730&biw=604&q=soon%20meme%20owl&ved=0ahUKEwinuJ_E0IvVAhVB4D4KHaMZBY8QMwjSASgDMAM&iact=mrc&uact=8)
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Paying down mortgage before FI/RE to make a small withdrawal rate later:
Beginning Mortgage Debt This Month: $153,371 (sorry I cheated)
Paid Mortgage Debt This Month : $8487
Ending Mortgage Debt : $144,883
I game-ify the experience by setting goals and then working every two weeks with each new paycheck to beat the goal. It is what passes for pleasure in my cubicle. -ap
Made progress since last post:
Mortgage debt now stands at $133,859 and I have a $3000 payment scheduled for payday on Friday.
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I'm rather stoked to be able to jump in on this thread!
Starting Mortgage Debt : $148,640
Paid Mortgage Debt This Month : $9,000
Ending Mortgage Debt : $137,809
My mortgage actually began in Sept. 2013 at $435,000, but for this thread I'll start it this month. I am so pumped to finally be on the home stretch!
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OK, I'll Join:
Beginning Debt this month: 129,060
Payment: 2850(includes interest)
Ending Balance: 126,515
Update:
Beginning Debt this month: 89,171
Payment: 6454
Ending Balance: 82921
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Beginning Mortgage Debt This Month: $130,858
Paid Mortgage Debt This Month : $7,539
Ending Mortgage Debt : $123,320
September is a 3-paycheck month, so I am looking forward to reporting even better news at the end of the next month!
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September payoff:
Beginning Mortgage Debt This Month: $123,320
Paid Mortgage Debt This Month : $10,556
Ending Mortgage Debt : $112,764
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Down to 108K left on the mortgage. Should be under 100K come July. Keep on keepin on!
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September payoff:
Beginning Mortgage Debt This Month: $123,320
Paid Mortgage Debt This Month : $10,556
Ending Mortgage Debt : $112,764
Change of course: we are now just banking the mortgage payments instead of paying them and will keep them on hand as cash available to pay off. Will continue to post, but the road forward likely less dramatic.
October payoff:
Beginning Mortgage Debt This Month: $112,764
Paid Mortgage Debt This Month : $1,580
Ending Mortgage Debt : $111,183
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Balance will be under 100K on July 1.
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Another 1K in principal paid off and another lego on my 3D mortgage payoff model makes its way back to my son's toy box.
I don't know whose idea it is to make a 3D model with legos of the debt, but I love that and I'm going to borrow it . . . if my kids still have any legos anywhere. Hmmmm.
https://www.brentroad.com/photos/00535281.jpg
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Lego idea was me. I keep the Lego model and my latest mortgage statement on my nightstand. So every morning I wake up and I know I have business to take care of.
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We've decided to finish off our current home mortgage.
Starting Mortgage Debt : $ 180,001
Beginning Mortgage Debt This Month: $146,890
Paid Mortgage Debt This Month : $ 885
Ending Mortgage Debt : $146,005
$227,500 purchase with an appraised value of ~$324,000. Current Zillow value of $345,000 (for what that's worth).
Plan is to pay off a HELOC we're using to fund some renovations on a couple of properties by April, 2020, then hit this mortgage hard. We'll be selling a property, probably within the year, and we intend to put at least $40,000 of the equity into the mortgage.
RMDs from our 401Ks/IRAs for 2020 will be used to pay off the HELOC. We'll put about $15,000 from them against the mortgage in 2021 and 2022.
Our FIRE income is going up in 2020 from several sources (Social security for me and profits from two rental houses coming online). Rather than spend it, we're planning on adding in an additional $1200 a month starting by April 2020. That, plus the regular payments should get us paid off around September, 2022. I just sent in the December 2019 payment, so we're talking about paying it off in 33 more payments, in just under 3 years. Otherwise we would have just under 12 years to go.
If we end up selling the property using owner financing instead of them getting a bank loan, that will slow us down a bit. Instead of a $40,000 lump sum in the first year, it would be $500+ / month starting by 2021. Those payments would only bring in $12,000 in two years, leaving a shortfall of $28,000. We'll have another property income stream starting up in 2022 which should bring in about $850 a month, plus we can toss in the 2023 RMD of $15,000. It would delay us 4-5 months. Not bad!
If we have a big stock drop we'll funnel the extra payments into stocks. If rental property drops big time we'll divert it to rental houses. But until/unless those things happen, we're going to stomp on this mortgage. At a fixed rate of 2.75% it doesn't make economic sense to pay it off early (assuming historically average returns),, but we're FIRED, we have enough and I'm just tired of the mortgage.
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Joining this club :)
balance 143,685 on 240k loan 7 years in on 15yr @ 2.875
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This is a great example of "How Plans Are Worthless But Planning Is Essential"
Note my plan in Nov of 2019.
We've decided to finish off our current home mortgage.
Starting Mortgage Debt : $ 180,001
Beginning Mortgage Debt This Month: $146,890
Paid Mortgage Debt This Month : $ 885
Ending Mortgage Debt : $146,005
$227,500 purchase with an appraised value of ~$324,000. Current Zillow value of $345,000 (for what that's worth).
Plan is to pay off a HELOC we're using to fund some renovations on a couple of properties by April, 2020, then hit this mortgage hard. We'll be selling a property, probably within the year, and we intend to put at least $40,000 of the equity into the mortgage.
RMDs from our 401Ks/IRAs for 2020 will be used to pay off the HELOC. We'll put about $15,000 from them against the mortgage in 2021 and 2022.
Our FIRE income is going up in 2020 from several sources (Social security for me and profits from two rental houses coming online). Rather than spend it, we're planning on adding in an additional $1200 a month starting by April 2020. That, plus the regular payments should get us paid off around September, 2022. I just sent in the December 2019 payment, so we're talking about paying it off in 33 more payments, in just under 3 years. Otherwise we would have just under 12 years to go.
If we end up selling the property using owner financing instead of them getting a bank loan, that will slow us down a bit. Instead of a $40,000 lump sum in the first year, it would be $500+ / month starting by 2021. Those payments would only bring in $12,000 in two years, leaving a shortfall of $28,000. We'll have another property income stream starting up in 2022 which should bring in about $850 a month, plus we can toss in the 2023 RMD of $15,000. It would delay us 4-5 months. Not bad!
If we have a big stock drop we'll funnel the extra payments into stocks. If rental property drops big time we'll divert it to rental houses. But until/unless those things happen, we're going to stomp on this mortgage. At a fixed rate of 2.75% it doesn't make economic sense to pay it off early (assuming historically average returns),, but we're FIRED, we have enough and I'm just tired of the mortgage.
Found a house we fell in love with the very next month. Pulled money from savings for the down payment, bought it and then had two mortgages. Sold it a couple months ago and now we've paid off the new house instead.
So, all that planning to pay off a mortgage early worked out to pay off a newer, bigger mortgage even earlier. :)
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Is anyone even part of this club anymore?
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Well, in less than 2 weeks, I will officially be part of this club...and will be singing “All by myself”, apparently.
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This is a great example of "How Plans Are Worthless But Planning Is Essential"
Note my plan in Nov of 2019.
We've decided to finish off our current home mortgage.
Starting Mortgage Debt : $ 180,001
Beginning Mortgage Debt This Month: $146,890
Paid Mortgage Debt This Month : $ 885
Ending Mortgage Debt : $146,005
$227,500 purchase with an appraised value of ~$324,000. Current Zillow value of $345,000 (for what that's worth).
Plan is to pay off a HELOC we're using to fund some renovations on a couple of properties by April, 2020, then hit this mortgage hard. We'll be selling a property, probably within the year, and we intend to put at least $40,000 of the equity into the mortgage.
RMDs from our 401Ks/IRAs for 2020 will be used to pay off the HELOC. We'll put about $15,000 from them against the mortgage in 2021 and 2022.
Our FIRE income is going up in 2020 from several sources (Social security for me and profits from two rental houses coming online). Rather than spend it, we're planning on adding in an additional $1200 a month starting by April 2020. That, plus the regular payments should get us paid off around September, 2022. I just sent in the December 2019 payment, so we're talking about paying it off in 33 more payments, in just under 3 years. Otherwise we would have just under 12 years to go.
If we end up selling the property using owner financing instead of them getting a bank loan, that will slow us down a bit. Instead of a $40,000 lump sum in the first year, it would be $500+ / month starting by 2021. Those payments would only bring in $12,000 in two years, leaving a shortfall of $28,000. We'll have another property income stream starting up in 2022 which should bring in about $850 a month, plus we can toss in the 2023 RMD of $15,000. It would delay us 4-5 months. Not bad!
If we have a big stock drop we'll funnel the extra payments into stocks. If rental property drops big time we'll divert it to rental houses. But until/unless those things happen, we're going to stomp on this mortgage. At a fixed rate of 2.75% it doesn't make economic sense to pay it off early (assuming historically average returns),, but we're FIRED, we have enough and I'm just tired of the mortgage.
Found a house we fell in love with the very next month. Pulled money from savings for the down payment, bought it and then had two mortgages. Sold it a couple months ago and now we've paid off the new house instead.
So, all that planning to pay off a mortgage early worked out to pay off a newer, bigger mortgage even earlier. :)
As of last October the mortgage is gone.
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Congrats @SwordGuy ! How does it feel to be done?
I officially belong here. Just snuck it under the $150K mark, at $149,997 owed as of today.
Anyone else belong here?
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Congrats @SwordGuy ! How does it feel to be done?
@LeftA , it feels GREAT!
When we closed on our new home in January, we had a mortgage on the old house and the new house, plus we had three other houses we had bought to help people out that we were scheduled to off-load that year.
Getting rid of all those costs cut well over $50k off our expenses. Cash flow is way better now. :)
I officially belong here. Just snuck it under the $150K mark, at $149,997 owed as of today.
Congrats! You're getting close! How quickly do you plan to pay it down?
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@SwordGuy , thank you! Under 3 years, and hopefully closer to 2. Can’t wait to have this baby gone!
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Will be in the 130s in a few days!
Since I’ll be a part of this thread for most of the year, I thought I’d check again on whether anyone else is here too.
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We are at $133,500 and will be in the 120s, in about a month.
It’s really starting to feel like the end is in sight now.
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Currently at $149,675.99 June 2021
LeftA great job!
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Congrats and welcome @meandmyfamily !
Nice to have some company in this thread. Mine’s now at just over $125K. I expect to hang out here for another 5 months or so.
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I'm a month early, but hoping you'll forgive me since this thread has a bit more action in it than the previous one. My goal this year is to get my mortgage down to $142,948. I'm going a good chunk over my minimum payment each month, but not really changing the amounts I put down - any extra money is going towards investments and FIRE.
Honestly, I was this close to putting an extra $600 toward my mortgage just so I'd be below 150k in July, but I don't need it to be on track and the only reason to put extra was to feel better about posting in this thread!
2021 Goal: $143,000 remaining on the mortgage ($18,500+ paid off)
1/1/21 Balance: $161,448
5/1/21 Balance: $153,665
7/1/21 Balance: $150,521 ($7,521 to goal)
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@alcon835 , it's only more active because I'm in it and post a lot, LOL. Happy to have company, so no worries about joining early.
AFM, I will be under $120K at next payment!
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Okay, so I'm finally legal...
2021 Goal: $143,000 remaining on the mortgage ($18,500+ paid off)
1/1/21 Balance: $161,448
5/1/21 Balance: $153,665
7/1/21 Balance: $150,521
8/1/21 Balance: $148,942 ($5,942 to goal)
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Congratulations on making it here officially @alcon835 !
Next payment I’ll be at under $115K. Considering where this mortgage started, it feels like almost nothing!
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Well, my days in this thread are numbered. Got to just under $106K today.
How’s everyone else doing?
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Well, my days in this thread are numbered. Got to just under $106K today.
How’s everyone else doing?
Nice!!! I look forward to you being able to drop out! As for me, I'm on track for my 2021 goal. Should hit it in December...
2021 Goal: $143,000 remaining on the mortgage by EOY 2021 ($18,500+ paid off)
1/1/21 Balance: $161,448
5/1/21 Balance: $153,665
7/1/21 Balance: $150,521
8/1/21 Balance: $148,942
9/1/21 Balance: $147,359
10/1/21 Balance: $145,771 ($2,771 to goal)
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Thank you @alcon835 !
I've got about 1 more month to hang out in here. Next payment is in a few days and will be at just over $103K owed then.
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I'm in but will be leaving this club in a couple of months! I was soooo excited to be under 120K for some random reason but now super excited go below 100K....nearly there!
Over the years, I paid some extra principal here and there then saw the light and opened a "house" taxable account. Any amount I would of paid to principal and extra rental income, I've put into this "house" account. When it's double the mortgage amount (nearly there), I might pay it off or more than likely, I'll pay it off when its below 40K (and around the time I plan to go from PT to FIRE!).
Idea for the "house" account is to pay for its own expenses but haven't figured out the actual steps yet- still in the accumulating phase of my life.
10/21- 105,376.33
11/21-103,380.55
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Well, after 9.5 months I’m out of here! See you on the other side...
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Dammit.
My 5 mortgage balances are (net of offsetting cash):
$0
$74,000
$80,000
$256,000
$360,000
Guess I need to find a new club... :D
That's cool
Sent from my Infinix X682B using Tapatalk
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A quick end-of-year update on my mortgage. Just plugging away. I hit my goal, which is nice to see. Hoping to eliminate another 20k in 2022!
2021 Goal: $143,000 remaining on the mortgage by EOY 2021 ($18,500+ paid off)
1/1/21 Balance: $161,448
5/1/21 Balance: $153,665
7/1/21 Balance: $150,521
8/1/21 Balance: $148,942
9/1/21 Balance: $147,359
10/1/21 Balance: $145,771
EOY Balance: $142,583 ($417 to goal)
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Whoa, it has been quite awhile! My plan was to update quarterly but that clearly didn't happen. Anyway, 2022 was an interesting year. Due to some life uncertainty we cut way back on mortgage payments and poured the funds into other things. Nothing wrong with that, but it did slow down our mortgage payoff quite a bit.
1/1/21 Balance: $161,448
1/1/22 Balance: $142,583
1/1/23 Balance: $130,075
We'll be deciding over the next few days how much we want to put into our mortgage this year. In 2022 it was the minimum, but I think we'll want to increase that for 2022. Not nearly as aggressive at it as I was earlier, but it is still important to me that I pay off my mortgage in 2026. Lots of progress needs to be made if I'm going to pull that off. But I think its realistic if I can hit some of my other financial goals.
Here's to another year inching ever closer to being mortgage free!
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Dusting off this old thread again to provide another yearly update. 2023 was messy, but not terrible. Another year of NOT paying extra on the mortgage. Originally the plan was to move in early 2024, but now we're going to take that extra savings so I can quit my job and go on a sabbatical. Anyway, still made good progress on my 15-year loan.
1/1/21 Balance: $161,448
1/1/22 Balance: $142,583
1/1/23 Balance: $130,075
1/1/24 Balance: $119,512
I think we'll still end up selling this house before we pay it off, but if 2023 taught me anything it's that plans change.
Here's to another year inching ever closer to being mortgage free!