Author Topic: Mortgage Payoff Club!!  (Read 225953 times)

nottoolatetostart

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Re: Mortgage Payoff Club!!
« Reply #1200 on: March 03, 2017, 03:38:59 AM »
^same here.  Money wasn't in the market(wasn't going to jump in now), wasn't doing any good in my savings account.  Mortgage gone.  30 year loan paid off in 11.  Easily one hundred thousand saved in interest.  I never like paying money for not having money.

Congrats! What an accomplishment.

cheddarpie

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Re: Mortgage Payoff Club!!
« Reply #1201 on: March 03, 2017, 07:32:59 PM »
I am in the group of paying off my mortgage early.  I don't like owing anyone anything and I will feel like this burden will be lifted.   With that said, we are in the straight stretch of paying it off.  I am looking to be done with it in June.  I just paid for March and so now the balance is $12,716.  It's so close I can taste it.

I couldn't fight the urge anymore.  We paid off the house today!  It feels good, but I bet it will feel even better come the end of the month when I normally make a payment and won't have to!


Congratulations!! I was going to post to say, I'm in the same boat -- just over 10k with my March payment and planning to be  done by June. Not sure I'll make it that long now either!

Woohoo!!
« Last Edit: March 05, 2017, 03:32:36 PM by cheddarpie »

SAfAmBrit

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Re: Mortgage Payoff Club!!
« Reply #1202 on: March 05, 2017, 08:13:15 PM »
I am in the group of paying off my mortgage early.  I don't like owing anyone anything and I will feel like this burden will be lifted.   With that said, we are in the straight stretch of paying it off.  I am looking to be done with it in June.  I just paid for March and so now the balance is $12,716.  It's so close I can taste it.

I couldn't fight the urge anymore.  We paid off the house today!  It feels good, but I bet it will feel even better come the end of the month when I normally make a payment and won't have to!
Congratulations

couponvan

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Re: Mortgage Payoff Club!!
« Reply #1203 on: March 06, 2017, 06:54:50 PM »
The renewal letter for my mortgage arrived! I owe $7,361.71. Renewal time means I can pay it off without penalty! Which is, of course, the point. I want to pay it off on April 1 (aka the earliest possible date) but that's on a weekend. Waiting for April 3 might kill me. The indignities I suffer!
There is a small part of me that wants to borrow a ton more on my mortgage, under today's very nice rates, and invest it. That would make sense, numbers-wise. But I'm embarking on a financially risky move (getting tenants in my current home and the new one, taking on a more expensive house) and having lower monthly payments reduces that risk, so I will pay it off. But 2.69% is tempting. Such a pretty interest rate.

IMMA PAY OFF MY MORTGAGE, BITCHEZ!!!!

You go girl!!! I am 2.625% and I think I would be a better payoff person if it were higher. I'm starting to think cash flow though....gotta pay for college next year for kid #1. Not knowing how much that is going to cost is TORTURE!!!
Why the hell are we going shopping? Buy sh*t, return other sh*t, go through sh*t and donate sh*t. Complain about having too much sh*t. Repeat. (Bracken Joy 2/17)




pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #1204 on: March 06, 2017, 10:54:05 PM »
Still making steady progress. I too am looking forward to having more flexible cash flow in the not too distant future.

Jan. 2015 - ~100k
Oct. 2015 - ~$67500
Dec.3, 2015 - ~$60k
Feb. 5, 2016 - $52,108.53
March 7, 2016 - 49,774.21
April 11, 2016 - 48,700 to go. Had to pay taxes this month.
May - failed to report in
June - $42,853.69
July - $41,597.20
August 2016 - 38,000
September 2016 - $36,230.88
October 2016 - $34,250. Now down to April 2020 at minimum payments.
November 2016 - $32,211 and some change.
December 2016 - $29,990 and change. Under 30k to end the year.
January 2017 - $28,200
February 2017 - $24800
March 2017 - $23k+ as of today. Going to push this down to a bit under $20k with the bulk of my tax refund.
« Last Edit: March 06, 2017, 11:00:17 PM by pdxmonkey »

asauer

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Re: Mortgage Payoff Club!!
« Reply #1205 on: March 09, 2017, 06:09:18 AM »
Still making steady progress. I too am looking forward to having more flexible cash flow in the not too distant future.

Jan. 2015 - ~100k
Oct. 2015 - ~$67500
Dec.3, 2015 - ~$60k
Feb. 5, 2016 - $52,108.53
March 7, 2016 - 49,774.21
April 11, 2016 - 48,700 to go. Had to pay taxes this month.
May - failed to report in
June - $42,853.69
July - $41,597.20
August 2016 - 38,000
September 2016 - $36,230.88
October 2016 - $34,250. Now down to April 2020 at minimum payments.
November 2016 - $32,211 and some change.
December 2016 - $29,990 and change. Under 30k to end the year.
January 2017 - $28,200
February 2017 - $24800
March 2017 - $23k+ as of today. Going to push this down to a bit under $20k with the bulk of my tax refund.
Great job!  Keep plugging!

SAfAmBrit

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Re: Mortgage Payoff Club!!
« Reply #1206 on: March 09, 2017, 08:19:56 AM »
Could not resist - put a small payment in so i could be in the teens today. $19900. It is soooo close now.

theadvicist

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Re: Mortgage Payoff Club!!
« Reply #1207 on: March 09, 2017, 09:41:42 AM »
Could not resist - put a small payment in so i could be in the teens today. $19900. It is soooo close now.

That must feel so good! Not much to go now.

plainjane

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Re: Mortgage Payoff Club!!
« Reply #1208 on: March 09, 2017, 10:35:44 AM »
Could not resist - put a small payment in so i could be in the teens today. $19900. It is soooo close now.

I've said it before, and I will say it again, the great thing about paying down the mortgage is that when you get near the end, every little bit makes a visible difference.  You are so close.

When investing, after you hit a certain point, throwing an extra $100 in looks like just noise, so there is less positive reinforcement to do so.
Using procrastination to my advantage since 2001.

AustinHorn

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Mortgage Payoff Club!!
« Reply #1209 on: March 09, 2017, 12:38:40 PM »
Think I'm going to start paying off the mortgage this month.  Here's my stats:

Balance: $101,998.51
Term:  15 year fixed (10 years, 3 months left)
Rate:  2.875%

I think I could get it knocked out in 2 years (prior to my 41st birthday) if I'm diligent.  I'm maxing out my 401k, have no other debts and have cash for nearly 12 months of emergency living plus a $10k used car if mine happens to crap out on me (115k miles currently), which isn't likely.

I have a few thoughts on why I want to prepay the mortgage:

1. Being debt free trumps the math for me.  The math leans to invest, but I'd rather be debt free.
2.  Equity exposure - Currently I don't have any bonds, and by allocating this portion of my savings to my mortgage, that gives me a guaranteed 2.875% on my "fixed income" portfolio.  This is the equivalent of buying 4-5 year investment grade corporate bonds at today's rates.  I prefer the mortgage prepay guarantee.  I'm investing my 401k contributions entirely in the stock market.  I'm also one who is concerned about the market at these valuations, so I'm perfectly fine with allocating a larger portion of my savings to fixed income (mortgage payoff) than the stock market.
3.  Tax Deduction - This may have been stated on the thread already, but the tax deduction of a mortgage is not as beneficial as it's purported to be if you are making the "do I pay it down" decision.  If you are considering prepaying your mortgage, you are most likely going to be doing this with after-tax dollars (i.e. non-IRA/401k dollars).  If you don't prepay the mortgage and opt to invest those dollars, you are indeed getting a tax deduction for the mortgage interest.  But assuming you are investing the dollars that would go to mortgage prepayment into an after-tax account (my scenario since I'm maxing my 401k), then you will be taxed on any dividends/interest/capital gains realized from that investment.  So by not paying down the mortgage you are preserving the tax deduction but at the same time adding taxable investment income.  While you do have a limited amount of control over how those earnings are taxed, you are still generating incremental tax on those dollars when they are invested.  So the benefit of the mortgage interest deduction is muted, especially for my scenario.

So I'm going to put a little towards it this month and start with a prepayment plan in April.  Looking forward to being debt free!!!!
« Last Edit: March 09, 2017, 09:59:05 PM by AustinHorn »

mies

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Re: Mortgage Payoff Club!!
« Reply #1210 on: March 11, 2017, 02:40:05 AM »
Think I'm going to start paying off the mortgage this month.  Here's my stats:

Balance: $101,998.51
Term:  15 year fixed (10 years, 3 months left)
Rate:  2.875%

I think I could get it knocked out in 2 years (prior to my 41st birthday) if I'm diligent.  I'm maxing out my 401k, have no other debts and have cash for nearly 12 months of emergency living plus a $10k used car if mine happens to crap out on me (115k miles currently), which isn't likely.

I have a few thoughts on why I want to prepay the mortgage:

1. Being debt free trumps the math for me.  The math leans to invest, but I'd rather be debt free.
2.  Equity exposure - Currently I don't have any bonds, and by allocating this portion of my savings to my mortgage, that gives me a guaranteed 2.875% on my "fixed income" portfolio.  This is the equivalent of buying 4-5 year investment grade corporate bonds at today's rates.  I prefer the mortgage prepay guarantee.  I'm investing my 401k contributions entirely in the stock market.  I'm also one who is concerned about the market at these valuations, so I'm perfectly fine with allocating a larger portion of my savings to fixed income (mortgage payoff) than the stock market.
3.  Tax Deduction - This may have been stated on the thread already, but the tax deduction of a mortgage is not as beneficial as it's purported to be if you are making the "do I pay it down" decision.  If you are considering prepaying your mortgage, you are most likely going to be doing this with after-tax dollars (i.e. non-IRA/401k dollars).  If you don't prepay the mortgage and opt to invest those dollars, you are indeed getting a tax deduction for the mortgage interest.  But assuming you are investing the dollars that would go to mortgage prepayment into an after-tax account (my scenario since I'm maxing my 401k), then you will be taxed on any dividends/interest/capital gains realized from that investment.  So by not paying down the mortgage you are preserving the tax deduction but at the same time adding taxable investment income.  While you do have a limited amount of control over how those earnings are taxed, you are still generating incremental tax on those dollars when they are invested.  So the benefit of the mortgage interest deduction is muted, especially for my scenario.

So I'm going to put a little towards it this month and start with a prepayment plan in April.  Looking forward to being debt free!!!!

Awesome. It sounds like you have thought this through pretty well. It is a big relief being out of debt completely. If the markets take a dive or you lose your job, or both happen simultaneously, not having to worry about the burden of a mortgage payment is a huge relief. Plus, once the mortgage is paid, you can really double down on investing. The second we paid off our mortgage, I doubled my 401k contributions without breaking a sweat. I couldn't say that when we were still paying the mortgage.
Less is more.

frugalkristen

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Re: Mortgage Payoff Club!!
« Reply #1211 on: March 11, 2017, 05:34:48 AM »
Think I'm going to start paying off the mortgage this month.  Here's my stats:

Balance: $101,998.51
Term:  15 year fixed (10 years, 3 months left)
Rate:  2.875%

I think I could get it knocked out in 2 years (prior to my 41st birthday) if I'm diligent.  I'm maxing out my 401k, have no other debts and have cash for nearly 12 months of emergency living plus a $10k used car if mine happens to crap out on me (115k miles currently), which isn't likely.


I have a few thoughts on why I want to prepay the mortgage:

1. Being debt free trumps the math for me.  The math leans to invest, but I'd rather be debt free.
2.  Equity exposure - Currently I don't have any bonds, and by allocating this portion of my savings to my mortgage, that gives me a guaranteed 2.875% on my "fixed income" portfolio.  This is the equivalent of buying 4-5 year investment grade corporate bonds at today's rates.  I prefer the mortgage prepay guarantee.  I'm investing my 401k contributions entirely in the stock market.  I'm also one who is concerned about the market at these valuations, so I'm perfectly fine with allocating a larger portion of my savings to fixed income (mortgage payoff) than the stock market.
3.  Tax Deduction - This may have been stated on the thread already, but the tax deduction of a mortgage is not as beneficial as it's purported to be if you are making the "do I pay it down" decision.  If you are considering prepaying your mortgage, you are most likely going to be doing this with after-tax dollars (i.e. non-IRA/401k dollars).  If you don't prepay the mortgage and opt to invest those dollars, you are indeed getting a tax deduction for the mortgage interest.  But assuming you are investing the dollars that would go to mortgage prepayment into an after-tax account (my scenario since I'm maxing my 401k), then you will be taxed on any dividends/interest/capital gains realized from that investment.  So by not paying down the mortgage you are preserving the tax deduction but at the same time adding taxable investment income.  While you do have a limited amount of control over how those earnings are taxed, you are still generating incremental tax on those dollars when they are invested.  So the benefit of the mortgage interest deduction is muted, especially for my scenario.

So I'm going to put a little towards it this month and start with a prepayment plan in April.  Looking forward to being debt free!!!!

Awesome. It sounds like you have thought this through pretty well. It is a big relief being out of debt completely. If the markets take a dive or you lose your job, or both happen simultaneously, not having to worry about the burden of a mortgage payment is a huge relief. Plus, once the mortgage is paid, you can really double down on investing. The second we paid off our mortgage, I doubled my 401k contributions without breaking a sweat. I couldn't say that when we were still paying the mortgage.

Love this!  I started paying it down last month (an extra $500).  Other pieces to the math that people don't think about -

I take the standard deduction so there is no benefit to paying mortgage interest.

I am not a high earner and I have 2 kids in college so those deductions bring my tax base to $0.  Even maxing my 401K isn't a huge benefit.

I have to fill out the FAFSA each year and my home equity does not count against me.

My mortgage is my only debt.  I also look at paying it off early as my 'bond' portion of my portfolio.

I have a decent 401K and Roth IRA balance (I am still contributing) and a large (larger than I should have but it helps me sleep at night) emergency fund.

I could pay it of in 2 years but I'm thinking I will take up to 5 yrs and add to my other investments also to give myself a little of both worlds.

cantgrowone

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Re: Mortgage Payoff Club!!
« Reply #1212 on: March 17, 2017, 10:00:40 AM »
Hi there. Somehow I just stumbled across this thread. DW and I want to pay off our mortgage early. We have $52k & 27 years left at 3.75%. We have the cash to pay it off today but DW is skeptical of taking a 'chunk' out of our savings. After paying off we will have a 6 month EF.

Should we just pull the trigger and start putting our mortgage payment in a brokerage account?

mies

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Re: Mortgage Payoff Club!!
« Reply #1213 on: March 17, 2017, 02:49:37 PM »
Hi there. Somehow I just stumbled across this thread. DW and I want to pay off our mortgage early. We have $52k & 27 years left at 3.75%. We have the cash to pay it off today but DW is skeptical of taking a 'chunk' out of our savings. After paying off we will have a 6 month EF.

Should we just pull the trigger and start putting our mortgage payment in a brokerage account?

If the money you have to pay off the mortgage is just sitting in a checking or savings account earning less interest than the mortgage is costing you in interest, I would just kill the mortgage. You have to respect your wife's wishes on the money too though and maybe come up with a plan to rebuild your emergency fund quickly if you want more than 6 months in the bank. Best of luck with whatever decision  you guys finally end up making.
Less is more.

Brother Esau

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Re: Mortgage Payoff Club!!
« Reply #1214 on: March 17, 2017, 06:11:59 PM »
We started additional payments to the mortgage a few months ago. Figure we can do at least $1,000 or more extra each month by living a stache lifestyle. thank you MMM peeps!

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #1215 on: March 28, 2017, 07:34:20 PM »
First Quarter 2017 Update:

Starting mortgage = $435,000, 5 year term @ 3.26% (starting Sept. 30, 2013)
Goal = Full Mortgage Payoff by end of 5 year term (Sept. 30, 2018)

Progress:
- Mortgage amount as of December 25, 2014:  $380,819
- Mortgage amount as of April 2, 2015: $359,144
- Mortgage amount as of July 9, 2015: $324,055
- Mortgage amount as of December 31, 2015:  $285,708
- Mortgage amount - June 2, 2016 - $253,560
- Mortgage amount - September 8, 2016 - $232,502
- Mortgage amount - December 30, 2016 - $194,252
- Mortgage amount - March 30, 2017 - $161,932

Making some great progress and on track for 2018 payoff.  Still feels like a long haul though, I'm ready for it to be done.  Husband and I are thinking of pulling the plug on full time work once this mortgage is gone!
« Last Edit: March 28, 2017, 07:37:37 PM by frizzywhiskers »