Author Topic: Mortgage Payoff Club!!  (Read 340179 times)

Zola.

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Re: Mortgage Payoff Club!!
« Reply #1500 on: January 02, 2018, 05:39:21 AM »
Another 1100 overpaid this morning.

Balance down to 119,300.

I have only managed two overpayments in recent times since getting married. But I have already saved 7 months of future payments. :)

tightwaddy

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Re: Mortgage Payoff Club!!
« Reply #1501 on: January 02, 2018, 09:18:03 AM »
Stopping in to say hello--paid off my mortgage in 2016 and still don't regret it.  Looking at some of the recent posts, I see there was a bit of the perennial debate over the intent of this thread and the merits of this choice.

While mathematically a face-punch, the psychological benefits of paying off the mortgage in 2016 turned out to be priceless for me. FI is/would still have been 7-10 years on the horizon if I'd not done the pay-off. But, paying it off put me into FU money territory, so after a really rough 2017 I decided to say FU to my job.  I 100% meant it and planned to take some time off to figure out the next act (which would certainly have been at a lower salary).

My employer was so eager to retain me, that they offered me a completely different job with better hours, more flexibility, better benefits and summers off.  In sum, it's the good parts of my prior job without the misery. With that housing albatross around my neck, I wouldn't have taken the leap that got me to a really happy place.

Wishing everyone who wants to payoff a dramatic principle decline 2018!

birdman2003

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Re: Mortgage Payoff Club!!
« Reply #1502 on: January 03, 2018, 08:43:50 AM »
Thanks tightwaddy!

Dicey

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Re: Mortgage Payoff Club!!
« Reply #1503 on: January 03, 2018, 08:46:30 AM »
Stopping in to say hello--paid off my mortgage in 2016 and still don't regret it.  Looking at some of the recent posts, I see there was a bit of the perennial debate over the intent of this thread and the merits of this choice.

While mathematically a face-punch, the psychological benefits of paying off the mortgage in 2016 turned out to be priceless for me. FI is/would still have been 7-10 years on the horizon if I'd not done the pay-off. But, paying it off put me into FU money territory, so after a really rough 2017 I decided to say FU to my job.  I 100% meant it and planned to take some time off to figure out the next act (which would certainly have been at a lower salary).

My employer was so eager to retain me, that they offered me a completely different job with better hours, more flexibility, better benefits and summers off.  In sum, it's the good parts of my prior job without the misery. With that housing albatross around my neck, I wouldn't have taken the leap that got me to a really happy place.

Wishing everyone who wants to payoff a dramatic principle decline 2018!
Congratulations on the new job!
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tightwaddy

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Re: Mortgage Payoff Club!!
« Reply #1504 on: January 03, 2018, 12:06:01 PM »
Congratulations on the new job!

Thanks!  I'm sure the motto isn't just about being mortgage free, but being brave enough to say goodbye to something that's hurting you. However, I could afford to be brave without a $1700 mortgage on my back :)

Zola.

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Re: Mortgage Payoff Club!!
« Reply #1505 on: January 04, 2018, 06:36:52 AM »
Stopping in to say hello--paid off my mortgage in 2016 and still don't regret it.  Looking at some of the recent posts, I see there was a bit of the perennial debate over the intent of this thread and the merits of this choice.

While mathematically a face-punch, the psychological benefits of paying off the mortgage in 2016 turned out to be priceless for me. FI is/would still have been 7-10 years on the horizon if I'd not done the pay-off. But, paying it off put me into FU money territory, so after a really rough 2017 I decided to say FU to my job.  I 100% meant it and planned to take some time off to figure out the next act (which would certainly have been at a lower salary).

My employer was so eager to retain me, that they offered me a completely different job with better hours, more flexibility, better benefits and summers off.  In sum, it's the good parts of my prior job without the misery. With that housing albatross around my neck, I wouldn't have taken the leap that got me to a really happy place.

Wishing everyone who wants to payoff a dramatic principle decline 2018!

Lovely story and result!

I am a long way off this...

FireLane

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Re: Mortgage Payoff Club!!
« Reply #1506 on: January 04, 2018, 07:43:14 AM »
As of today, I'm down to $60k left. I could pay it off this year if I got really aggressive, but I'm trying to divide my paychecks between that and putting money into Vanguard. Aiming to be mortgage-free by 2018!

Progress update: My September payment has cleared and I'm down to $51K. The end is in sight!

Down to $38K as of February. I'm getting impatient to be done with this now that the amount left is so small. :)

$28K remaining. At the rate I'm paying it down, I have less than a year left. The light at the end of the tunnel!

$13K left, now that my last payment of 2017 has gone through. I'll be mortgage-free by spring 2018!

My original plan was to make the final payment in May, but I'm impatient with the finish line so close. I'm thinking of withdrawing a few thousand from my emergency fund to expedite the end. It's earning less in interest than my mortgage rate anyway.

I did this, and now my balance is (drumroll, please)... $5,851.94.

Officially in to four-digit territory! This should be done and dusted by March.

wannabe-stache

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Re: Mortgage Payoff Club!!
« Reply #1507 on: January 04, 2018, 03:06:27 PM »
Stopping in to say hello--paid off my mortgage in 2016 and still don't regret it.  Looking at some of the recent posts, I see there was a bit of the perennial debate over the intent of this thread and the merits of this choice.

While mathematically a face-punch, the psychological benefits of paying off the mortgage in 2016 turned out to be priceless for me. FI is/would still have been 7-10 years on the horizon if I'd not done the pay-off. But, paying it off put me into FU money territory, so after a really rough 2017 I decided to say FU to my job.  I 100% meant it and planned to take some time off to figure out the next act (which would certainly have been at a lower salary).

My employer was so eager to retain me, that they offered me a completely different job with better hours, more flexibility, better benefits and summers off.  In sum, it's the good parts of my prior job without the misery. With that housing albatross around my neck, I wouldn't have taken the leap that got me to a really happy place.

Wishing everyone who wants to payoff a dramatic principle decline 2018!
My wife and i are considering paying ours off.

i don't consider it to be a slam dunk "face punch" if you can't deduct the interest from your taxes, which we can't in our case, particularly with the new standard deductions.  as i see it, our interest costs us around $4500 per year.  my muni bonds, which will be liquidated in part to pay for it, don't earn anywhere near that.

my only "fear" is that it won't be as gratifying as i think it will.  we only bought our home 4 years ago so it's not like we've been paying it down for decades.

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1508 on: January 04, 2018, 07:49:32 PM »
@wannabe,     At the very least, you're only 4 years into the amortization and can stop the bleeding on interest far sooner than many of the rest of us will be able to.   What's amazing is seeing how quickly you can/will re-accumulate after-tax equity in your investments as cash flow frees up from debt payment.   I saw this after recasting our current mortgage a couple of years ago...    If you need liquidity / reserves after cashing in the bonds, then a cheap HELOC (without a balance minimum) is good.   Eliminating debt "at the top" of market cycles and being able to access it at your discretion "at the bottom" leads to very sound sleeping at night.

Eilonwy

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Re: Mortgage Payoff Club!!
« Reply #1509 on: January 08, 2018, 03:11:08 PM »
We slowed down our overpayments over the last year because we needed to build up a cushion again after spending our savings on a big project. I'm thinking it's time to start serious paying off again. We're just under $60k.

honeyfill

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Re: Mortgage Payoff Club!!
« Reply #1510 on: January 08, 2018, 07:32:08 PM »
Hit a major milestone last week,  only 29 years to go on my fixed rate 3.5% mortgage.  Wish me luck!



indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1511 on: January 09, 2018, 09:30:41 PM »
Hit a major milestone last week,  only 29 years to go on my fixed rate 3.5% mortgage.  Wish me luck!

Were you joking?   Some of us will wail and gnash teeth if you weren't...    Please restore faith in humanity with a reply with your plan to kill that thing!

honeyfill

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Re: Mortgage Payoff Club!!
« Reply #1512 on: January 10, 2018, 09:09:29 AM »
Sorry, I was just being sort of a  jerk.  We just refinanced to get a 3.5% rate last year. I still haven't made up my mind how I am going to handle my mortgage.  We have always been on the  pay the minimum and invest the rest team. We bought our first hours about 30 years ago and we have plenty of money to pay off this one now with what we have made with investments, so that part of the plan worked.  We are retiring this year so we thought we might just pay it off now. However, We would take a large tax hit this year and our stash would go down by about 270k so we have decided not to do it yet.  The general plan is to pay the minimum for 7 more years until we both hit 65. We will try to stay  under the ACA limits for subsidies. Then pay it off in a lump sum when we are both on medicare and receiving SS.     



markbike528CBX

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Re: Mortgage Payoff Club!!
« Reply #1513 on: January 10, 2018, 09:56:34 PM »
The money wire is in progress to the final payoff.   Now waiting for the county to record it.

couponvan

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Re: Mortgage Payoff Club!!
« Reply #1514 on: January 10, 2018, 10:42:13 PM »
The money wire is in progress to the final payoff.   Now waiting for the county to record it.
CONGRATULATIONS!!!
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)




Trifele

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Re: Mortgage Payoff Club!!
« Reply #1515 on: January 11, 2018, 03:57:40 AM »
The money wire is in progress to the final payoff.   Now waiting for the county to record it.

Congratulations MarkBike!!!

Dicey

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Re: Mortgage Payoff Club!!
« Reply #1516 on: January 11, 2018, 04:23:41 AM »
Hit a major milestone last week,  only 29 years to go on my fixed rate 3.5% mortgage.  Wish me luck!

Were you joking?   Some of us will wail and gnash teeth if you weren't...    Please restore faith in humanity with a reply with your plan to kill that thing!

Surely you were joking, I4N? I have complete faith in honeyfill's decision! Not one iota of wailing and/or gnashing of teeth from this quarter of humanity. Glad you did the math first, honeyfill! Sounds like you have a great plan for a prosperous retirement. Congratulations.
I did it! I have a journal!
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Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1517 on: January 11, 2018, 07:03:18 AM »
The money wire is in progress to the final payoff.   Now waiting for the county to record it.

Congratulations on achieving your goal!  What are you going to do with the $$ that previously went to the mortgage?
"Overcoming the inertia of status quo since tomorrow"

birdman2003

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Re: Mortgage Payoff Club!!
« Reply #1518 on: January 11, 2018, 09:19:44 AM »
The money wire is in progress to the final payoff.   Now waiting for the county to record it.

Nice work markbike!

markbike528CBX

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Re: Mortgage Payoff Club!!
« Reply #1519 on: January 11, 2018, 09:24:33 AM »
The money wire is in progress to the final payoff.   Now waiting for the county to record it.

Congratulations on achieving your goal!  What are you going to do with the $$ that previously went to the mortgage?

Thanks for the congrats, also thanks to Trifele and couponvan, you'll get there if you haven't already.

I skimmed of the amount of the stache above the "enough" amount (well above the FIRE #) to do this.

Method: I was unmmarried and stacheing away, with the understanding that if I ever got married, my priorities would get changed.   I got married late in life, got a house and made paydown a priority.  I only did 401K max and Roth IRA adds after the house buying, not much in taxable.

The stache payed for 57% of the house, and has kept going up anyway.
Down payment 40K, all cash-like stuff (cash, matured savings bonds etc) for initial downpayment, no equities.
2013  56K extra pay from stache (well, it was "at the top" wasn't it?).
That made current cashflow payments much more effective for principal paydown
2017 Remaining 27K from portion of stache  in the "more than enough"  category, because "the top is in" :-)

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1520 on: January 11, 2018, 09:36:29 PM »
Hit a major milestone last week,  only 29 years to go on my fixed rate 3.5% mortgage.  Wish me luck!

Were you joking?   Some of us will wail and gnash teeth if you weren't...    Please restore faith in humanity with a reply with your plan to kill that thing!

Surely you were joking, I4N? I have complete faith in honeyfill's decision! Not one iota of wailing and/or gnashing of teeth from this quarter of humanity. Glad you did the math first, honeyfill! Sounds like you have a great plan for a prosperous retirement. Congratulations.
dicey,  Ha!  Surely I wasn't of course (given the goal of this payoff club and my posts favoring early pay-off as a launching point to FIRE and using freed cash flow to reinvest or be flexible as life demands during RE).   Glad honeyfill has a plan that works for his/her/their family's retirement needs and to manage capital gains (assuming the market avoids major upheaval within that 5 year horizon).   

Dicey

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Re: Mortgage Payoff Club!!
« Reply #1521 on: January 11, 2018, 10:02:08 PM »
Hit a major milestone last week,  only 29 years to go on my fixed rate 3.5% mortgage.  Wish me luck!

Were you joking?   Some of us will wail and gnash teeth if you weren't...    Please restore faith in humanity with a reply with your plan to kill that thing!

Surely you were joking, I4N? I have complete faith in honeyfill's decision! Not one iota of wailing and/or gnashing of teeth from this quarter of humanity. Glad you did the math first, honeyfill! Sounds like you have a great plan for a prosperous retirement. Congratulations.
dicey,  Ha!  Surely I wasn't of course (given the goal of this payoff club and my posts favoring early pay-off as a launching point to FIRE and using freed cash flow to reinvest or be flexible as life demands during RE).   Glad honeyfill has a plan that works for his/her/their family's retirement needs and to manage capital gains (assuming the market avoids major upheaval within that 5 year horizon).
But surely you know there is no need for such an assumption. Lots of folks are practically salivating for a downturn, or at least a decent slump, so they can get even more bang for their bucks. It's always fun to buy stocks when the market's "on sale."
I did it! I have a journal!
A Lot Like This
And hell yes, I am still moving confidently in the direction of my dreams...

Eilonwy

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Re: Mortgage Payoff Club!!
« Reply #1522 on: January 12, 2018, 02:53:08 PM »
So after talking with my husband, we've settled on a goal. We'd like to get paid off by the time our son graduates from high school (June 2019) because at that point we'll have a lot more options about how we can live the next chapter of our lives.

Can anyone point me to a calculator that tells you how much principal you need to pay to get paid off by a specific time?

MrMoneySaver

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Re: Mortgage Payoff Club!!
« Reply #1523 on: January 12, 2018, 02:57:34 PM »
Quote
Lots of folks are practically salivating for a downturn, or at least a decent slump, so they can get even more bang for their bucks.

Or at least, they think they are. Sometimes it's a classic case of "be careful what you wish for ..."

thedigitalone

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Re: Mortgage Payoff Club!!
« Reply #1524 on: January 12, 2018, 03:36:12 PM »
Can anyone point me to a calculator that tells you how much principal you need to pay to get paid off by a specific time?

I like this one, it shows you the result of additional payments vs the original timeline.
https://www.calculator.net/mortgage-payoff-calculator.html

Eilonwy

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Re: Mortgage Payoff Club!!
« Reply #1525 on: January 12, 2018, 05:14:45 PM »
Thanks, but that one isn't really right for my needs, because we've been overpaying all along.

NoraLenderbee

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Re: Mortgage Payoff Club!!
« Reply #1526 on: January 12, 2018, 06:48:29 PM »
So after talking with my husband, we've settled on a goal. We'd like to get paid off by the time our son graduates from high school (June 2019) because at that point we'll have a lot more options about how we can live the next chapter of our lives.

Can anyone point me to a calculator that tells you how much principal you need to pay to get paid off by a specific time?

Maybe this?
https://www.hsh.com/its-my-term-prepayment-calculator.html

That site has lots of calculators.

Eilonwy

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Re: Mortgage Payoff Club!!
« Reply #1527 on: January 12, 2018, 09:22:17 PM »
I don't think I can make that one work either. We're paying largely principal at this point, so a standard calculation is not useful. Possibly there isn't a simple way to do it.

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1528 on: January 13, 2018, 05:23:06 AM »
Eilonwy,  Just Google search for Excel based amortization tools or web page (likely full of clickbait though) that allow you to enter the principal and number of months and that show the resulting amortization table with a column for entering principal payments along the timeline.    Then simply start with your current balance and plug in the number of months remaining on your particular loan.   This way you can "what if" specific principal payments along the way and see exactly what it does towards accelerating the pay off.   There's nothing different in a 360 month schedule vs. say a 279 month schedule as far as the math goes.   Of course, the bankers and mortgage brokers would love to convince you otherwise and lock you in for 30 years.  No way sukkas!  ;-)

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1529 on: January 13, 2018, 05:43:16 AM »
But surely you know there is no need for such an assumption. Lots of folks are practically salivating for a downturn, or at least a decent slump, so they can get even more bang for their bucks. It's always fun to buy stocks when the market's "on sale."

Surely there is actually. (As the OP wants to retire in 5 (or 7) years so there's less room for a market recovery).   There's no need to wring one's hands and entirely cash out just due to that timeline of course.  But there is need to balance risk so it's perfectly reasonable to prudently lock in some gains at an all time high to recast a 29 year loan or otherwise free up cash flow to increase the likelihood of FI.    Of course, we all want to buy the market "on sale".   Lots of us choose to to do so confidently with a risk balanced approach of yummy free cash flow from a zero debt personal balance sheet and passive income from other equity assets.   Risk is always a part of life whether our chosen math or path acknowledges it or not.   Cheers!