Author Topic: Mortgage Payoff Club!!  (Read 225190 times)

dabears847

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Re: Mortgage Payoff Club!!
« Reply #150 on: March 17, 2014, 04:46:10 PM »
I crunch these numbers all the time and I came to the value of piece of mind that paying off my house would provide a greater return should my wife or I lose our jobs.

1. I've built massive excel charts and equations evaluating the cash flow of the before cash and after cash. One thing I found is the opportunity of cash flow after the mortgage is paid off, that has to be calculated as well for the return comparison. ie. the second half of the mortgage or 15years of no mortgage payments invested and the benefit of compounding.

2. I could pay off my rentals and take the tax savings which is marginally better than paying off my house. However, I would lose the comfort of something unexpected happening to our cash flow. Maybe we have another downturn in the real estate market so I'm waiting to pay those off last.

3. I look at paying down my house as a form of bond buying as part of my investing strategy.

Are not taking into account that the investments kick off yield that can be tapped?  Your cashflow will be significantly better off if investments yield greater than your mortgage rate.  If you don't have a paid off mortgage, then prepaying your mortgage puts you in a significantly riskier situation if you or your wife lose your jobs.  Have investments provides a huge emergency fund vs. having your money locked up in your house.  If you prepay your mortgage by $50k, then you have an emergency where you don't have the money to pay the monthly payment the bank will not say do not worry about your payment as you prepaid $50k.  They will say make your payment by x date or we will begin foreclosure.  If you have excess dollars in investments you can liquidate your investments, payoff your bills, payoff your mortgage, etc. until you get back on your feet.

ANS: This is all about timing, in a perfect scenario you could yield 10% but you could also lose 10%. This is how opportunity of cash flow comes into play and the time horizon.

ANS: I'm actually closing a Home Equity Line of Credit next week. This will allow me access to my homes equity that I've paid into the house in the event I need the funds. Also my goal is to payoff the house so I can retire sooner while reducing the amount I need in retirement.



It is clear that many forget to include the investment side of the income to offset the mortgage side of the expense. If you look at in this way the peace of mind should/would be greater than having a partially or fully paid off mortgage as you in effect have a huge emergency fund earning longterm market rates.  Check out my Excel spreadsheet to see the impact on your finances based on various assumptions.

ANS: Your assuming investing in the DOW at 16,500 will yield you short term and long term returns which I'm finding it hard to invest with the market so high currently. You should also consider the potential for a loss in your equation.

This is a very personal choice and there are no terrible decisions, but I want to point out to you and everyone else the math behind the decision.  Most don't see or don't count the investment side of things.  If they have good reasons for that, then I think it would be great to share those with the board.

ANS: Last part to consider, opportunity of cash flow

A: One scenario shows the return in the market and yielding perfect returns vs the current mortgage yield

Scenario B: Consider the after mortgage payoff cash flow available for the 15years of no mortgage payments and the extra payments previously going to principal payments now going to the market and now give it the same perfect returns.

P&I 1500 + Extra example of 1000 = 2500 Monthly for 15 years will yield a great return compounding all while having the piece of mind of your house paid off.

Also, now consider a shorter term for Early Retirement, your horizon plays a big role.





If you are comfortable I would like to see your Excel file to see your assumptions and calculations.

jrhampt

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Re: Mortgage Payoff Club!!
« Reply #151 on: April 01, 2014, 06:19:56 AM »
New balance: $143k

Bonuses next week!  Then we'll know how big this month's payment can be.  This time last year, we were at $203k, so we've made 60k progress over the past 12 months, and that was before we decided to really get serious about paying it off ASAP.

New balance: $123k

Sold some company stock after it vested, so this month will be another big payment.  Should be able to get it under $100k.  That will be the last of the unusually large payments this year, though.  Hoping to get into the mid-forties by the end of the year.

Cassie

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Re: Mortgage Payoff Club!!
« Reply #152 on: April 01, 2014, 12:39:52 PM »
You are doing an awesome job!!

Norrie

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Re: Mortgage Payoff Club!!
« Reply #153 on: April 01, 2014, 02:49:51 PM »
Waiting for our most recent payment to be processed, but new balance will be around 43,000. The goal is to have it paid off by the end of August, which may be a bit too rowdy. We'll see.

cdub

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Re: Mortgage Payoff Club!!
« Reply #154 on: April 01, 2014, 03:17:59 PM »
Waiting for our most recent payment to be processed, but new balance will be around 43,000. The goal is to have it paid off by the end of August, which may be a bit too rowdy. We'll see.

Awesome! Do to Murphy coming to visit I'mm going to have to build back my EF until I start throwing all the money at the mortgage. But that's great for you!
Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

medinaj2160

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Re: Mortgage Payoff Club!!
« Reply #155 on: April 02, 2014, 04:09:45 AM »
We are in as well :)

Me 28 and my wife 29 purchased our first and last home June 2012.

Value of our home according to Zillow 180K. We only paid 126K since it was a foreclosure and have a 30 year mortgage at 3.75%.
 
As of today we own $64,385.

Payoff goal: March 2015

My reason for paying the house fast is peace of mind because you never know what the future will hold.

New balance: $59,980

I miss judged my tax withholdings so I am not going to be able to pay as much on my mortgage next month :/

New balance: $55,556

little by little

New Balance: $51,171

New balance: $47270

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #156 on: April 08, 2014, 12:08:58 PM »
Hi There! I want to join your club :) we are a couple in in our 30s.
 
Goal: to pay off mortgage in 6 years, which would be 13 years earlier than what we originally signed up for. (YAY!)

Starting balance: $281,000 (2008)
Current balance: $174,000 (Mar 2014)

We started getting 'somewhat' serious about paying it off about 1.5 years ago. This year, though, we are taking it up a notch. Since Jan, we have put an additional $7500 on the principal. We also have extra high semi-monthly payments, on purpose. Goal is to have it down to $150,000 by Dec 31/14. Love the idea of having this group for support! Thanks!

Cassie

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Re: Mortgage Payoff Club!!
« Reply #157 on: April 08, 2014, 05:11:47 PM »
Allsummer long: you are doing an awesome job! Having our house paid off  helps me to sleep at night and helped me to be confident that we could actually retire.

serious_pete

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Re: Mortgage Payoff Club!!
« Reply #158 on: April 17, 2014, 12:25:30 PM »
I'm in! £122,000 left to go on a £128,000 mortgage. Interest rate set at 4.99% So far made a grand total of £1000 overpayments so got quite a way to go. The plan is to overpay by £500 per month to start with and change mortgage deal in December.
Red from Shawshank Redemption:

"He had a quiet way about him, a walk and a talk that just wasn't normal around here. He strolled, like a man in a park without a care or a worry in the world, like he had on an invisible coat that would shield him from this place."

My attempt at a journal : http://forum.mrmoneymustache.com/journals/finance-etc-pete's-journal/

jrhampt

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Re: Mortgage Payoff Club!!
« Reply #159 on: April 22, 2014, 12:30:47 PM »
New balance: $143k

Bonuses next week!  Then we'll know how big this month's payment can be.  This time last year, we were at $203k, so we've made 60k progress over the past 12 months, and that was before we decided to really get serious about paying it off ASAP.

New balance: $123k

Sold some company stock after it vested, so this month will be another big payment.  Should be able to get it under $100k.  That will be the last of the unusually large payments this year, though.  Hoping to get into the mid-forties by the end of the year.

Agh.  Missed getting it under $100k by $85.  Forgot to account for property tax/escrow increase.  Have to wait until next month to lose that extra digit.

New balance: $100k. 

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #160 on: April 22, 2014, 02:50:06 PM »
Allsummer long: you are doing an awesome job! Having our house paid off  helps me to sleep at night and helped me to be confident that we could actually retire.

Thanks Cassie! We are really looking forward to 5-6 years from now :) Currently figuring out just how much we will be able to put on this month (tax returns, etc...). Thanks for the inspiration, all.

Davids

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Re: Mortgage Payoff Club!!
« Reply #161 on: April 23, 2014, 08:06:28 PM »
Love this, my goal is to have my house paid off by 2020 (bought in 2010). Currently have a mortgage balance of $144K (4.25% interest). I have been getting more aggressive the past year as well. Perhaps I will use this thread as well to post my progress.

medinaj2160

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Re: Mortgage Payoff Club!!
« Reply #162 on: May 02, 2014, 04:01:52 AM »
We are in as well :)

Me 28 and my wife 29 purchased our first and last home June 2012.

Value of our home according to Zillow 180K. We only paid 126K since it was a foreclosure and have a 30 year mortgage at 3.75%.
 
As of today we own $64,385.

Payoff goal: March 2015

My reason for paying the house fast is peace of mind because you never know what the future will hold.

New balance: $59,980

I miss judged my tax withholdings so I am not going to be able to pay as much on my mortgage next month :/

New balance: $55,556

little by little

New Balance: $51,171

New balance: $47270

New balance: $43,868

Me and my wife changed our 401k contributions to max them out; there for principal payments for the rest of the year will be way smaller.

Rural

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Re: Mortgage Payoff Club!!
« Reply #163 on: May 02, 2014, 05:34:01 AM »
We are in as well :)

Me 28 and my wife 29 purchased our first and last home June 2012.

Value of our home according to Zillow 180K. We only paid 126K since it was a foreclosure and have a 30 year mortgage at 3.75%.
 
As of today we own $64,385.

Payoff goal: March 2015

My reason for paying the house fast is peace of mind because you never know what the future will hold.

New balance: $59,980

I miss judged my tax withholdings so I am not going to be able to pay as much on my mortgage next month :/

New balance: $55,556

little by little

New Balance: $51,171

New balance: $47270

New balance: $43,868

Me and my wife changed our 401k contributions to max them out; there for principal payments for the rest of the year will be way smaller.


With the interest rate on your mortgage, I think that's the wisest course for you to take. If it starts to get frustrating, look at the balance in your retirement accounts. :-)

shusherstache

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Re: Mortgage Payoff Club!!
« Reply #164 on: May 04, 2014, 05:29:37 PM »
So, even with the job change my paycheck is higher than expected thanks to free insurance (!) and other swanky benefits like free public transit.  The paycheck is still $500 lower every other week, but not the $800+ that we were expecting.  Yay! Between that and some unexpected checks we are still progressing, though slower originally than planned.  After DH is reimbursed from his travel later this month we will have another couple thou to throw at it.

Currently at: 38,600ish

Norrie

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Re: Mortgage Payoff Club!!
« Reply #165 on: May 04, 2014, 09:20:34 PM »
We're at $42,099. Well, I actually just threw another $100 at it because I couldn't stand seeing that $99 hanging out there. So just under $42K.

It's going to be a stretch to get it paid off by the end of August. A biiig stretch. But that's still our goal.

wauske

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Re: Mortgage Payoff Club!!
« Reply #166 on: May 05, 2014, 12:21:44 PM »
We're at $42,099. Well, I actually just threw another $100 at it because I couldn't stand seeing that $99 hanging out there. So just under $42K.

It's going to be a stretch to get it paid off by the end of August. A biiig stretch. But that's still our goal.

Wow, just wow... You'll be paying off in a month about as much as I'm expecting to pay off this year (not for lack of trying though)...

Status 1-1-2014: 78k
Current status: 72.5k
Expecting go under 70k next month!

To be fair, I did use ~48% of my net income as extra principle...
« Last Edit: May 09, 2014, 03:20:06 AM by wauske »
Everything I say is my personal opinion which is based on my subjective experience.

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #167 on: May 06, 2014, 10:34:11 AM »
Goal: to pay off mortgage in 6 years, which would be 13 years earlier than what we originally signed up for. (YAY!)

Starting balance: $281,000 (2008)
Current balance: $174,000 (Mar 2014)


Now down to $169,900! (thank you, good month at work + also tax return!) Hoping to keep up this momentum. So far this year, we have paid off $17,000... our salaries are not huge, we are just reconfiguring priorities - For me, having the goal of paying down the mortgage is helping me to save much more. I would probably not be quite as motivated if it was going into regular savings....
:)

Davids

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Re: Mortgage Payoff Club!!
« Reply #168 on: May 06, 2014, 04:00:28 PM »
My current mortgage balance is $141,500. Looking to have it at $138,500 next month.

frugalJD

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Re: Mortgage Payoff Club!!
« Reply #169 on: May 08, 2014, 04:54:24 PM »
I'm in on this.  Joined MMM forum because of it.  Great discussion, guys.

It's nice to share the motivation and hear from other's on the same mission.

My background:

- August 2012 (Age 28): purchased home for $321,400
- Original Mortgage balance: $250,400 (3.75%, 30 year fixed)
- Monthly mortgage payment: $1,160

- Current balance: $200,663

GOAL: Payoff by Fall 2019 (Age 35)

PLAN: Additional $2,200 to principal each month

My wife and I each contribute to 401k to the extent we max out our employer match.  We each have ROTH IRA which we contribute very little to so far, just opened them in December 2013. 

Emergency fund ~ 3 months livings expenses.  We would set aside more for an emergency fund but I work a Saturday job in addition to my full time.  If I were to lose my FT job, I am fortunate that I could pick up close to (if not) 40 hours /week at the Saturday job (never burn bridges!).

Like many others here, I highly value the peace of mind of being mortgage free and the zero risk involved in throwing extra money at a mortgage.

Keep up the good work!

-JD

McGeens

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Re: Mortgage Payoff Club!!
« Reply #170 on: May 09, 2014, 04:03:18 AM »
We're in for this challenge! In Australia interest rates are higher and not tax deductible so it makes good sense to squash the mortgage quick-sticks! We're 37 and 32yrs old.

Starting sum: $230k in 2007
Current: $87k

We've been aggressively paying it down for 3 years, since our son was born. We aim to have it cleared in 2 more years, at which point we will have saved $220k on interest. Unreal!!

I'm proud because we've done this on one FT and some part time salary, with lots of cost cutting badassity.

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #171 on: May 09, 2014, 12:43:24 PM »
We're in for this challenge! In Australia interest rates are higher and not tax deductible so it makes good sense to squash the mortgage quick-sticks! We're 37 and 32yrs old.

This is similar for us, here in Canada. Rates are fairly low right now, but expected to go up. We also cannot claim any interest as a deduction.

I'm proud because we've done this on one FT and some part time salary, with lots of cost cutting badassity.

Also in the same boat here. I really feel like it is forcing us to save more and get more creative with our badassity! having a concrete goal is so motivating!

Like many others here, I highly value the peace of mind of being mortgage free and the zero risk involved in throwing extra money at a mortgage.

+1! Welcome to the club :)

jrhampt

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Re: Mortgage Payoff Club!!
« Reply #172 on: May 22, 2014, 02:43:42 PM »
New balance: $143k

Bonuses next week!  Then we'll know how big this month's payment can be.  This time last year, we were at $203k, so we've made 60k progress over the past 12 months, and that was before we decided to really get serious about paying it off ASAP.

New balance: $123k

Sold some company stock after it vested, so this month will be another big payment.  Should be able to get it under $100k.  That will be the last of the unusually large payments this year, though.  Hoping to get into the mid-forties by the end of the year.

Agh.  Missed getting it under $100k by $85.  Forgot to account for property tax/escrow increase.  Have to wait until next month to lose that extra digit.

New balance: $100k.

New balance: $94k!  Nice to be under $100k finally. 

medinaj2160

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Re: Mortgage Payoff Club!!
« Reply #173 on: June 03, 2014, 11:00:34 AM »
We are in as well :)

Me 28 and my wife 29 purchased our first and last home June 2012.

Value of our home according to Zillow 180K. We only paid 126K since it was a foreclosure and have a 30 year mortgage at 3.75%.
 
As of today we own $64,385.

Payoff goal: March 2015

My reason for paying the house fast is peace of mind because you never know what the future will hold.

New balance: $59,980

I miss judged my tax withholdings so I am not going to be able to pay as much on my mortgage next month :/

New balance: $55,556

little by little

New Balance: $51,171

New balance: $47270

New balance: $43,868

Me and my wife changed our 401k contributions to max them out; there for principal payments for the rest of the year will be way smaller.

New balance: $42750.


Davids

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Re: Mortgage Payoff Club!!
« Reply #174 on: June 03, 2014, 04:01:28 PM »
My current mortgage balance is $141,500. Looking to have it at $138,500 next month.
Update: My new balance is $138,300. Purposely threw in an extra $200 to beat my goal. My goal for next month is $135,000 balance.

medinaj2160

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Re: Mortgage Payoff Club!!
« Reply #175 on: June 11, 2014, 04:05:09 AM »
We are in as well :)

Me 28 and my wife 29 purchased our first and last home June 2012.

Value of our home according to Zillow 180K. We only paid 126K since it was a foreclosure and have a 30 year mortgage at 3.75%.
 
As of today we own $64,385.

Payoff goal: March 2015

My reason for paying the house fast is peace of mind because you never know what the future will hold.

New balance: $59,980

I miss judged my tax withholdings so I am not going to be able to pay as much on my mortgage next month :/

New balance: $55,556

little by little

New Balance: $51,171

New balance: $47270

New balance: $43,868

Me and my wife changed our 401k contributions to max them out; there for principal payments for the rest of the year will be way smaller.

New balance: $42750.

Sold one of my cars and decided to send some money to the house.

New balance: $32750.

The goal is to pay the mortgage completely before I turn 30 in January... It is going to be difficult.
« Last Edit: June 11, 2014, 04:08:55 AM by medinaj2160 »

Jazzpolice

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Re: Mortgage Payoff Club!!
« Reply #176 on: June 11, 2014, 06:03:50 PM »
Very exciting with everyone working hard towards being mortgage free!

We have $7099 left and hoping to be done by August.  Can't wait!!  Even though we're a little older than some others on here…still better late than even later.

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #177 on: June 12, 2014, 01:42:15 PM »
Down to just under $165 K (cdn) now! So exciting! Goal of $150 K in December is a little closer.

In January of this year it was $186 K. I am really pleased with our progress. We are also saving in a variety of retirement accounts through work and on our own, so I feel it is a good balance.

Since we bought our condo in 2008, we have paid off almost 60% of our mortgage in 6.5 years :)
« Last Edit: August 05, 2014, 12:59:05 AM by allsummerlong »

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #178 on: June 12, 2014, 01:44:40 PM »
Very exciting with everyone working hard towards being mortgage free!

Can't wait!!  Even though we're a little older than some others on here…still better late than even later.

I totally agree.... Having like minded folks here is really motivating. And better late than never, absolutely! Welcome :)

fitzgeralday

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Re: Mortgage Payoff Club!!
« Reply #179 on: June 12, 2014, 02:52:40 PM »
I started a quest to pay off my mortgage! I even created a blog to document my journey.

http://mortgage-payoff-club.com/

Who's with me?

Paying off our mortgages would certainly be badass. (I hope you enjoy the blog too)

I am so here for this!  I am aiming to have my mortgage paid off in the next 8 years and will be supporting your blog and mortgage payoff efforts :)
“You can only become truly accomplished at something you love. Don’t make money your goal. Instead, pursue the things you love doing, and then do them so well that people can’t take their eyes off you.” -Maya Angelou

Strawberrykiwi75

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Re: Mortgage Payoff Club!!
« Reply #180 on: June 13, 2014, 03:44:33 AM »
Started my loan at the beginning of March with 212k, now sitting at 204 :-) pretty happy with that starting effort in 2.5 months


Nora

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Re: Mortgage Payoff Club!!
« Reply #181 on: June 13, 2014, 05:54:31 AM »
I am in. Intending to pay it all off in four years or less. This one is a big $600000 and 5.2% interest.

Down to 481544! Doing much better than I expected! So exciting.

frugalJD

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Re: Mortgage Payoff Club!!
« Reply #182 on: June 18, 2014, 06:09:09 PM »
I'm in on this.  Joined MMM forum because of it.  Great discussion, guys.

It's nice to share the motivation and hear from other's on the same mission.

My background:

- August 2012 (Age 28): purchased home for $321,400
- Original Mortgage balance: $250,400 (3.75%, 30 year fixed)
- Monthly mortgage payment: $1,160

- Current balance: $200,663

GOAL: Payoff by Fall 2019 (Age 35)

PLAN: Additional $2,200 to principal each month

My wife and I each contribute to 401k to the extent we max out our employer match.  We each have ROTH IRA which we contribute very little to so far, just opened them in December 2013. 

Emergency fund ~ 3 months livings expenses.  We would set aside more for an emergency fund but I work a Saturday job in addition to my full time.  If I were to lose my FT job, I am fortunate that I could pick up close to (if not) 40 hours /week at the Saturday job (never burn bridges!).

Like many others here, I highly value the peace of mind of being mortgage free and the zero risk involved in throwing extra money at a mortgage.

Keep up the good work!

-JD

Update: down to $195.5k!

A few changes I've made in the past month or two in order to increase my badassity/effort to payoff the mortgage:

1. FINALLY signed up for a cash back credit card, and use it for every expense/purchase possible.  I 'm kicking myself for not doing this sooner!  Every little bit helps!

2. Learned about the commuter benefits available through my employer.  I get $100/month tax free to use towards public transportation.  This saves gas $ as well as serious wear and tear on my car (50 mile round trip commute).

Just when I think I'm doing everything I can to payoff the mortgage ASAP, I find new ways to work even harder at it. 

Love the forum, thanks to all.  I don't post much but I read often and appreciate the helpful insight and tips from the board.

-JD

theincurableapprentice

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Re: Mortgage Payoff Club!!
« Reply #183 on: June 18, 2014, 07:57:03 PM »
my husband and have about a year to go before we will have the extra cash to throw down on the mortgage.  I constantly think about what is the right move for us: paying down vs. investing.  So many good posts in this thread - I appreciate all the points of view. 

what I love about savings goals/paying off debt is you can choose to do what is right in the moment and change the strategy when needed. 
http://theincurableapprentice.blogspot.com
join me in my quest to learn more and do more

Neustache

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Re: Mortgage Payoff Club!!
« Reply #184 on: June 21, 2014, 05:30:35 AM »
I'm here!!

Starting Mortgage:  123K
Current Balance: 122K

Mortgage is at 4.25% with PMI, so while I may switch up strategies at some point, right now the goal is to get the PMI off as quickly as possible, hopefully by August 2015 (we only had 5% down).  If we don't switch strategies, goal is to pay this off in the next 3 or 4 years. 


I love seeing everyone else's progress on this thread. 

theincurableapprentice

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Re: Mortgage Payoff Club!!
« Reply #185 on: June 25, 2014, 08:27:03 PM »
I'm here!!

Starting Mortgage:  123K
Current Balance: 122K

Mortgage is at 4.25% with PMI, so while I may switch up strategies at some point, right now the goal is to get the PMI off as quickly as possible, hopefully by August 2015 (we only had 5% down).  If we don't switch strategies, goal is to pay this off in the next 3 or 4 years. 


PMI is on my mind as well - pay off all other debt first and then get rid of that pointless $118 fee that goes to waste every month.  I plan to get rid of it by December 2015.  Good luck to you :)

I love seeing everyone else's progress on this thread.
http://theincurableapprentice.blogspot.com
join me in my quest to learn more and do more

medinaj2160

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Re: Mortgage Payoff Club!!
« Reply #186 on: July 02, 2014, 05:53:09 AM »
We are in as well :)

Me 28 and my wife 29 purchased our first and last home June 2012.

Value of our home according to Zillow 180K. We only paid 126K since it was a foreclosure and have a 30 year mortgage at 3.75%.
 
As of today we own $64,385.

Payoff goal: March 2015

My reason for paying the house fast is peace of mind because you never know what the future will hold.

New balance: $59,980

I miss judged my tax withholdings so I am not going to be able to pay as much on my mortgage next month :/

New balance: $55,556

little by little

New Balance: $51,171

New balance: $47270

New balance: $43,868

Me and my wife changed our 401k contributions to max them out; there for principal payments for the rest of the year will be way smaller.

New balance: $42750.

Sold one of my cars and decided to send some money to the house.

New balance: $32750.

The goal is to pay the mortgage completely before I turn 30 in January... It is going to be difficult.

New balance: $28,050

Omg so close, I probably own less money on my house than my coworkers paid for their cars lol.

jrhampt

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Re: Mortgage Payoff Club!!
« Reply #187 on: July 02, 2014, 02:34:13 PM »
New balance: $143k

Bonuses next week!  Then we'll know how big this month's payment can be.  This time last year, we were at $203k, so we've made 60k progress over the past 12 months, and that was before we decided to really get serious about paying it off ASAP.

New balance: $123k

Sold some company stock after it vested, so this month will be another big payment.  Should be able to get it under $100k.  That will be the last of the unusually large payments this year, though.  Hoping to get into the mid-forties by the end of the year.

Agh.  Missed getting it under $100k by $85.  Forgot to account for property tax/escrow increase.  Have to wait until next month to lose that extra digit.

New balance: $100k.

New balance: $94k!  Nice to be under $100k finally.

$84k!

cdub

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Re: Mortgage Payoff Club!!
« Reply #188 on: July 02, 2014, 03:06:11 PM »
Nice! I got hit by some serious medical bills so I need to rebuild the e-fund but this thread is inspiring me. I can't wait until I can start throwing money at the mortgage again.
Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

basd

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Re: Mortgage Payoff Club!!
« Reply #189 on: July 02, 2014, 03:07:45 PM »
Good work everyone!

We'll finally be starting our payoff as well, first 10K will be paid this week. That will bring the remaining mortgage down to 228.500. We've started saving up this 10K in January after paying off the remainder of my student loans, so pretty happy with that. Especially since we're now with three instead of two in our household..

Seeing everybody's progress on here has been really motivating.

Davids

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Re: Mortgage Payoff Club!!
« Reply #190 on: July 02, 2014, 06:34:39 PM »
My current mortgage balance is $141,500. Looking to have it at $138,500 next month.
Update: My new balance is $138,300. Purposely threw in an extra $200 to beat my goal. My goal for next month is $135,000 balance.
My new balance is $134,900. Decided to throw in an extra $100 to beat my goal. Unfortunately I am not sure what next month will bring as this month will have some extra expenses (Auto insurance renewal and paying baby delivery bills). Also my wife will be going part time when her maternity leave ends at the end of this month so the next 6-9 months will have a slight wrinkle in putting in as much extra as we can toward the principal but we will still be putting as much extra as we can. 

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #191 on: July 02, 2014, 08:58:28 PM »
Down to just under $165 K (cdn) now! So exciting! Goal of $150 K in December is a little closer.

In January of this year it was $186 K. I am really pleased with our progress. We are also saving in a variety of retirement accounts through work and on our own, so I feel it is a good balance.

Since we bought our condo in 2008, we have paid off almost 60% of our mortgage in 6.5 years :)

Jan 2008 - $281,000
Jan 2014 - $186,000
July 2014 - $164,700
« Last Edit: August 05, 2014, 12:58:32 AM by allsummerlong »

tanhanivar

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Re: Mortgage Payoff Club!!
« Reply #192 on: July 03, 2014, 10:50:23 PM »
Joining the club!

Situation
I bought a house just above my budget in 2009, with a 30 year mortgage ($391k loan), single income. I felt bad only having a $20k deposit, but the bank said I was well above average in that. That was fixed-rate, and my income stagnated for those 5 years, but I paid the permitted extra $20k on top of the regular payments and saved up $25k for when I could get an offset account.

Now I owe $324,450. This is mostly fixed at 5.05% for 3 years. $46,100 is variable (5.08%), and set-off against my 100% offset account, which I try to keep over $25k.

Decision
Long-term, the jury is still out on pay-down vs invest. However, for at least the next 3 years my goal is to pay down as much as possible. At the end of the fixed-rate period, I can reassess pay-down vs buy a flat vs invest.

Goal
Based on current income, etc. I can aim to pay this off in 10 years with weekly repayments of $819 (from weekly income of $1,335) . I really, really want to pay it off before I'm 40 (i.e. 6 years), which should let me be FIRE by 45. I can't *quite* get the calculations to come out at less than 8 years. However I am not including side-income (or corresponding expenses), windfalls or further mustachian ratchetting in my calculations, so it's not impossible.

Latest payment
In June I paid $5478 on my mortgage, which is $3259 more than my minimum payments, and $1929 more than what I aim to pay! I don't expect to manage this every month. It was helped by five payment dates in the month and several side-business cheques coming in at once. But it has brought my forecasted repayment date down to 1 month less than 10 years. So hurrah!


commodore perry

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Re: Mortgage Payoff Club!!
« Reply #193 on: July 06, 2014, 06:27:32 PM »
I'm joining this club too! We just moved to a new state and I've gotten it in my head to pay off the mortgage as fast as we can for peace of mind and avoid interest!

I know on paper I could maybe make more investing but wife and I both max out our 401k's and make extra contributions to taxable accounts so it's really not an either-or thing. And with the past few years of returns in the market I don't feel the need to hold on to the mortgage just to put more in the market at this point. Guaranteed interest savings and peace of mind are worth it for me right now.

Purchase price = $248,000 Oct/2013 / financed $154,000; 15 year at 3.5%.
After most recent payment we owe $108,850...good bonus year helped!

Goal is to pay off by March 2016. 21 more payments - who's counting? :) I'll be 37. We'll save $37,500 in interest.

ltt

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Re: Mortgage Payoff Club!!
« Reply #194 on: July 08, 2014, 06:58:33 PM »
C'mon guys.  Let's apply some perspective here. 

It doesn't matter if keeping a mortgage and investing the balance can make you more money over the long haul.  Paying off a mortgage, if that's what someone wants to do, is an awesome accomplishment and deserves praise rather than criticism. 

Save the face punches for people who really need them!  I'm borderline on dishing out a few for being so focused on maximizing returns that we neglect to value and recognize tremendous savings accomplishments.

Not only that, it's just so freeing to not have to pay one more mortgage payment.

basd

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Re: Mortgage Payoff Club!!
« Reply #195 on: July 09, 2014, 01:06:07 AM »
Good work everyone!

We'll finally be starting our payoff as well, first 10K will be paid this week. That will bring the remaining mortgage down to 228.500. We've started saving up this 10K in January after paying off the remainder of my student loans, so pretty happy with that. Especially since we're now with three instead of two in our household..

Seeing everybody's progress on here has been really motivating.
Aaand... done. Feels good making that first payment and bringing down the monthly payment. Now it's time to save for the next 10K!

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #196 on: July 11, 2014, 08:47:08 PM »
I'm in on this mission, super excited and focused on getting this done as soon as possible.  Both my husband and I are feeling done with the 9 to 5 world.  Been at it for over 20 years and are ready for a new focus.  Being mortgage free will give us the freedom to choose what we want to do with our time.  Going to hang on in the corporate world until this baby is gone!

Purchased a new home in September 2013 for $655,000 (no judging - it's expensive where I live!)

- Starting mortgage = $435,000, 5 year term @ 3.26%
- Making weekly payments of $800
- Goal:  Make additional payments averaging $2700 a month = $32,400/yr.
- Realistic Mortgage Free Date:  March 2020
- Long Shot Mortgage Free Date:  September 2018 - the end of our current 5 year term.  Depending on bonuses received over the next few years and staying focused on the budget we actually have a shot at making this happen.

- Current Mortgage:  $407,500

And go.........!

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #197 on: July 11, 2014, 09:48:39 PM »
I'm in on this mission, super excited and focused on getting this done as soon as possible.  Both my husband and I are feeling done with the 9 to 5 world.  Been at it for over 20 years and are ready for a new focus.  Being mortgage free will give us the freedom to choose what we want to do with our time.  Going to hang on in the corporate world until this baby is gone!

Purchased a new home in September 2013 for $655,000 (no judging - it's expensive where I live!)

- Starting mortgage = $435,000, 5 year term @ 3.26%
- Making weekly payments of $800
- Goal:  Make additional payments averaging $2700 a month = $32,400/yr.
- Realistic Mortgage Free Date:  March 2020
- Long Shot Mortgage Free Date:  September 2018 - the end of our current 5 year term.  Depending on bonuses received over the next few years and staying focused on the budget we actually have a shot at making this happen.

- Current Mortgage:  $407,500

And go.........!


Happy to have another Canadian here! RE is crazy expensive where I live, too (BC). It feels so great to see that mortgage dwindle every month!

Weekly payments are a great idea! We've got semi monthly, but may change it up for the next period :)

libertarian4321

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Re: Mortgage Payoff Club!!
« Reply #198 on: July 12, 2014, 05:51:41 AM »
Sorry, but unless you have a monstrously large stash, I think this is a poor investment decision. Borrow at 3.5% fixed for 30years. Put the overpayments into the sp500, et al.

Incorrect.

In THEORY, it may be a mildly bad investment decision from a pure numbers point of view.

But life doesn't always follow the theoretical numbers.

I paid my mortgage off early in the late '90s.  As you said, in THEORY, that was a "mistake."

In reality, I came out ahead, because the stock market essentially stagnated for years after I paid off my mortgage.

Many of the theoretical calculations you see are deeply flawed.  They calculate the "tax benefit" of holding a mortgage, but neglect the fact that one can get most of that deduction even without a mortgage (through the standard deduction).

These theoretical calculations also almost always neglect the psychological benefit of having paid off the mortgage.  Knowing you are 100% DEBT FREE is pretty important to some people- worth far more than a few THEORETICAL bucks one way or the other.

So I can't join the club.  I already paid off my mortgage years ago, and never regretted it for a minute. 

And honestly, even if the numbers had worked out the other way, and shown that I would have made a bit more money by holding mortgage debt, I wouldn't change my decision.  Call me a radical.  Call me crazy.  But I think owing NOTHING to anyone is fantastic.  Being completely debt free is a great feeling. 





frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #199 on: July 12, 2014, 01:14:41 PM »
I'm in on this mission, super excited and focused on getting this done as soon as possible.  Both my husband and I are feeling done with the 9 to 5 world.  Been at it for over 20 years and are ready for a new focus.  Being mortgage free will give us the freedom to choose what we want to do with our time.  Going to hang on in the corporate world until this baby is gone!

Purchased a new home in September 2013 for $655,000 (no judging - it's expensive where I live!)

- Starting mortgage = $435,000, 5 year term @ 3.26%
- Making weekly payments of $800
- Goal:  Make additional payments averaging $2700 a month = $32,400/yr.
- Realistic Mortgage Free Date:  March 2020
- Long Shot Mortgage Free Date:  September 2018 - the end of our current 5 year term.  Depending on bonuses received over the next few years and staying focused on the budget we actually have a shot at making this happen.

- Current Mortgage:  $407,500

And go.........!


Happy to have another Canadian here! RE is crazy expensive where I live, too (BC). It feels so great to see that mortgage dwindle every month!

Weekly payments are a great idea! We've got semi monthly, but may change it up for the next period :)

Yep, crazy expensive is right!  Weekly payments make a huge difference.  Definately worthwhile to make the change.