Author Topic: Mortgage Payoff Club!!  (Read 1096930 times)

grantmeaname

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Re: Mortgage Payoff Club!!
« Reply #2500 on: April 03, 2024, 06:34:15 AM »
That's a big goal! Good luck!

Most mortgage interest in the US is not deductible either, practically speaking. It's only about 10% of taxpayers who itemize now after the Trump administration's tax changes. You'd likely have to have a big mortgage plus lots of state taxes plus another significant tax deduction for it to make sense.

monarda

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Re: Mortgage Payoff Club!!
« Reply #2501 on: April 03, 2024, 09:41:33 AM »
That's a big goal! Good luck!

Most mortgage interest in the US is not deductible either, practically speaking. It's only about 10% of taxpayers who itemize now after the Trump administration's tax changes. You'd likely have to have a big mortgage plus lots of state taxes plus another significant tax deduction for it to make sense.

I itemize every other year. In even tax years, I pay a couple of extra months of mortgage payments and property taxes so it's worth itemizing.  In odd years I pay less and use the standard deduction

monarda

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Re: Mortgage Payoff Club!!
« Reply #2502 on: April 03, 2024, 09:48:18 AM »
We have 3 mortgages.
Two won't be paid off for a while, (one is at 2.25%, one is at 3%)
but one... now the balance is now $49,435.

Less than 5 years to go. :-)

Almost a year later, mortgage balance for the rental is $43,515  (at 4%)
and the credit card balance we're holding is $45,917  ("0% credit cards"- balance transfer 3% for an additional 18 months, so basically 2% for year).  We'll pay both down, but not so aggressively, ... like the last couple of posts say, we will hold some in savings and stay steady paying the minimum or a bit more now and then.

Another year later, mortgage balance for the rental is $31,978
and the credit card balance is $54k, with plans to pay that down to about $40K in the next couple of months.

Alfred J Quack

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Re: Mortgage Payoff Club!!
« Reply #2503 on: April 06, 2024, 11:57:44 AM »
$92,000 to go on a 3.25% 15 year mortgage with 10 years remaining.

I wonder if this thread and this site will be around in 10 years for me to celebrate here - because I'm damn sure not paying a penny early!
The choice is yours to make but I paid mine off in 2018 and have been none the worse for it either.

Dutch Comfort

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Re: Mortgage Payoff Club!!
« Reply #2504 on: May 01, 2024, 08:34:03 AM »
Original: 120,000 repayment date 06/01/33
October 2021: 67,000 repayment date 12/01/32 - started the additional payments
April 2022: 60,000 repayment date 04/01/32 - HALFWAY MARK!!!!!
December 2022: EUR 53,000 repayment date 10/01/31
December 2023: EUR 41,000 repayment date 10/01/30
January 2024: EUR 39,500 repayment date 08/01/30
May 2024: EUR 36,500 repayment date 06/01/30

Goal for 2024: get to EUR 29K, repayment 10/01/29
Stretch goal: full repayment in 2027!

Another 2 months prepayment done! We're hoping for more prepayments this month, since we will receive the tax refund(s) and an insurance refund, which will all be directed to the mortgage!

Dutch Comfort

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Re: Mortgage Payoff Club!!
« Reply #2505 on: May 03, 2024, 03:06:20 AM »
Original: 120,000 repayment date 06/01/33
October 2021: 67,000 repayment date 12/01/32 - started the additional payments
April 2022: 60,000 repayment date 04/01/32 - HALFWAY MARK!!!!!
December 2022: EUR 53,000 repayment date 10/01/31
December 2023: EUR 41,000 repayment date 10/01/30
January 2024: EUR 39,500 repayment date 08/01/30
May 2024: EUR 36,500 repayment date 06/01/30
Another May 2024: EUR 34,500 repayment date 02/01/30

Goal for 2024: get to EUR 29K, repayment 10/01/29
Stretch goal: full repayment in 2027!

I just received the tax refund. Directed (and rounded to a nice round figures) EUR 2K directly to the mortgage!

Trifle

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Re: Mortgage Payoff Club!!
« Reply #2506 on: May 03, 2024, 04:18:15 AM »
Nice job @Dutch Comfort

lcmac32

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Re: Mortgage Payoff Club!!
« Reply #2507 on: May 03, 2024, 05:26:21 PM »
With my new mortgage and 6.625% interest rates, I am for the first time ever in the mortgage payoff club.  That is just about the break point for me.  7% would have been an almost absolute decision to pay extra as it will be close to the average returns in the market and the piece of mind factor that I am unloading the debt. 

I went from a 15y mtg 2.5% mtg with 9 years left to a 30y with the higher rate.  Because of the higher interest rate and the larger loan amount I decide to pay $500/month extra to principle.  I had to relocate for work, but it did come with a greater than 100% pay increase so I will bide mine time and then relocate one last time to my LCOL home state.

grantmeaname

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Re: Mortgage Payoff Club!!
« Reply #2508 on: May 04, 2024, 05:11:04 AM »
Nice, congrats on the huge raise. Seems very well worth moving off a sweet mortgage for that.

lcmac32

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Re: Mortgage Payoff Club!!
« Reply #2509 on: May 06, 2024, 10:27:37 AM »
Nice, congrats on the huge raise. Seems very well worth moving off a sweet mortgage for that.

Thanks!  It will be close on whether I will still hit my FIRE date (2028).  Mine will be more FI than RE, but I will have more reserve than I would have had.  I "guess" that is a good thing, but really am ready to be done sooner rather than later.  Will redefine my WHAT and WHEN my FIRE will look like at end of 2024. 

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2510 on: May 12, 2024, 06:40:14 AM »
@Dutch Comfort,   Nice "chunk" taken out of that 2nd mortgage!   

Freedomin5

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Re: Mortgage Payoff Club!!
« Reply #2511 on: May 12, 2024, 09:37:17 PM »
Original amount: 412k
Apr 2024: 407k
May 2024: 392k

Dutch Comfort

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Re: Mortgage Payoff Club!!
« Reply #2512 on: May 15, 2024, 03:48:12 AM »
Original: 120,000 repayment date 06/01/33
October 2021: 67,000 repayment date 12/01/32 - started the additional payments
April 2022: 60,000 repayment date 04/01/32 - HALFWAY MARK!!!!!
December 2022: EUR 53,000 repayment date 10/01/31
December 2023: EUR 41,000 repayment date 10/01/30
January 2024: EUR 39,500 repayment date 08/01/30
May 2024: EUR 36,500 repayment date 06/01/30
Another May 2024: EUR 34,500 repayment date 02/01/30
And.... another May 2024: EUR 33,500 repayment date 12/01/29

Goal for 2024: get to EUR 29K, repayment 10/01/29
Stretch goal: full repayment in 2027!

Received an insurance refund and rounded it up to another 2 months extra payment for our mortgage. We're getting into 2029 instead of 2030!!!! Can't imagine that we already cut off 3.5 years from our repayment date!

Trifle

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Re: Mortgage Payoff Club!!
« Reply #2513 on: May 15, 2024, 05:44:36 AM »
Nice progress @Freedomin5!  Wow @Dutch Comfort, you’re getting close!  Very exciting

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2514 on: May 16, 2024, 08:20:13 PM »
Goal for 2024: get to EUR 29K, repayment 10/01/29
Stretch goal: full repayment in 2027!

Received an insurance refund and rounded it up to another 2 months extra payment for our mortgage. We're getting into 2029 instead of 2030!!!! Can't imagine that we already cut off 3.5 years from our repayment date!

You can pay-off 29K euro now.   The lost "interest income" is meaningless in the big picture.  The ability to be happy without that debt and put monthly cash flow to work to grow (or payoff the primary mortgage!) is amazing for your health long-term both physically and fiscally.   Debt freedom leads to FIRE which leads to HAPPY.

Dutch Comfort

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Re: Mortgage Payoff Club!!
« Reply #2515 on: May 17, 2024, 04:41:32 AM »
Goal for 2024: get to EUR 29K, repayment 10/01/29
Stretch goal: full repayment in 2027!

Received an insurance refund and rounded it up to another 2 months extra payment for our mortgage. We're getting into 2029 instead of 2030!!!! Can't imagine that we already cut off 3.5 years from our repayment date!

You can pay-off 29K euro now.   The lost "interest income" is meaningless in the big picture.  The ability to be happy without that debt and put monthly cash flow to work to grow (or payoff the primary mortgage!) is amazing for your health long-term both physically and fiscally.   Debt freedom leads to FIRE which leads to HAPPY.

I surely want to, but have to keep MrDutchComfort in mind, who feels more comfortable with more liquidity on hand and he is in the not-paying-extra-on-mortgage kamp, so this is the compromise that we settled upon. All windfalls to additional payments (with a bit of rounding up from my side) and further just the usual payments.

AFrugalGuy

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Re: Mortgage Payoff Club!!
« Reply #2516 on: May 17, 2024, 05:11:05 AM »
December 31, 2023: $497,758.27
January 31, 2024: $463,437.96
February 28, 2024: $458,759.94
March 31, 2024: $454,488.73
April 30, 2024: $450,659.73

monarda

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Re: Mortgage Payoff Club!!
« Reply #2517 on: May 17, 2024, 10:21:59 AM »
Goal for 2024: get to EUR 29K, repayment 10/01/29
Stretch goal: full repayment in 2027!

I'm pretty much on that schedule, about 30K now, and repayment in 2027.
I'll keep you company!

Jack0Life

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Re: Mortgage Payoff Club!!
« Reply #2518 on: May 17, 2024, 11:00:25 AM »
I have a very cheap ARM loan that's about to reset.
Probably one of my bad decision to go with ARM loan as with this one I am able to reset this loan but it looks like high interest are here to stay.
I got locked in at 1.99% and about to jump to 3.99% this Sept. 3.99 is still cheap in this landscape so I will let it ride until next Sept 2025. If inflation doesn't die down, looks like I might have to pay off my mortgage.
Balance is $280k which I do have the money to pay off.
My special ARM is that let's say by Sept 2025, if interest go down and my bank provide my identical ARM loan at a rate I desire, I can get locked in that rate for $199. In Sept 2025 my rate will go from 3.99 to 5.99. So if my bank has my current ARM loan at a rate lower than 5.99, I can get that rate by paying $199. It's sitting at 6.69% right now.
We've been enjoying low interest rate for 25 yrs. Didn't think it would ever get this high.

lcmac32

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Re: Mortgage Payoff Club!!
« Reply #2519 on: May 21, 2024, 05:25:20 PM »
Here are my first three entries.  I would like to be more aggressive in my payoff, but it won't ramp up until the end of 2024.  Two weddings and a house remodel will have me replenishing a lot of my liquid capital.  I still plan on averaging over $500.00/mo. in additional principle.

Original Loan Amt $484,000.00 

March $483,072.97 ($500.00 add. principle)
April $482,140.83 ($500.00 add. principle)
May $481,703.54 (0.00 add. principle)



grantmeaname

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Re: Mortgage Payoff Club!!
« Reply #2520 on: May 22, 2024, 05:57:19 AM »
Every little bit helps. Do you have a spreadsheet that shows you how each extra $500 pulls in the payoff date?