Mortgage Payoff Club!!

[lcmac32]

Paid off my mortgage today!!!

I've never been more happy. (regarding a financial milestone)

5 / 2017:
     Purchased modest home for $167,000 with 10% down.
2017-2022:
     Non-aggressively paid down about $10k/yr as I built up my 100% equities portfolio.
1 / 2023: 
     Reached a portfolio level that would give a modest FI life.

2023-Today:
     Aggressively paid the mortgage down from $104,000 to $0, while still maxing all retirement contributions.

Great work.  I still have a little further to go on getting the retirement and non-retirement investment accounts where I want them to be.  Then it full scale war on the mortgage.  Thanks for the $104k inspirational 1.667 year payoff.  Impressive indeed!

[AFrugalGuy]

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
May 31, 2024: $445,958.51
June 30, 2024: $441,843.89
July 31, 2024: $437,899.61
August 31, 2024: $431,116.16

[lcmac32]

Original Loan Amt $484,000.00

Mar 24  $483,072.97 ($500.00 add. principal)
Apr 24  $482,140.83 ($500.00 add. principal)
May 24 $481,703.54 (0.00 add. principal)
Jun 24  $481,112.22 ($151.61 add. principal)
Jul 24   $480,517.64 ($151.61 add. principal)
Aug 24 $479,919.78 ($151.61 add. principal)
Sep 24 $479,318.62 (151.61 add. principal)

[grantmeaname]

the goal is to get under $1k in monthly interest midyear and under $200k mortgage balance at year end 2024. I think this loan has just about two years left to live, unless we get a stock market crash that calls my dollars away.

As of this month we now own half of our house, and our interest was down to triple digits at $974. We should be right around $200k balance at year end and it's still looking like we're on track to pay off the whole thing with the bonus after the next on 3/1/26. I might have two little windfalls coming next month which would help us out too, so there's hopefully a little more upside than downside.

[Just Joe]

Congrats! We're following along in your path. Our pay off won't be as soon but we're eager to get it behind us.

I like your progress poster!

[Dutch Comfort]

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
September 2024: EUR 30,500 repayment date 10/01/29

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

YES!!!!!! Due to an unexpected refund, we got to the 2024 goal. With the regular payments, we will hit the EUR 29K in December. And we're on our way to our stretch goal in 2027 to get this mortgage down to zero, when the teens will hit college......

[Money Badger]

@Dutch Comfort,  Great!  Get to 5 digits by Dec 2025.  Pay-off mid 2026.   You’ll need to have a good vacation in 2026 before the kid(s) go to university!  😉

[Money Badger]

@grantmeaname Awesome!   Measure, manage to milestones, win!!

[monarda]

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
September 2024: EUR 30,500 repayment date 10/01/29

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

YES!!!!!! Due to an unexpected refund, we got to the 2024 goal. With the regular payments, we will hit the EUR 29K in December. And we're on our way to our stretch goal in 2027 to get this mortgage down to zero, when the teens will hit college......

Nice work, @Dutch Comfort !
Our balance is $27,197. Payoff scheduled for June 2027 (or earlier?!)
We're pretty much right on schedule with you.

[Joel]

I was firmly in the don’t payoff your mortgage camp when I had a 2.5% rate… however that has changed, I’m now at 5.874% (and was briefly at 6.999%). The highest rate had me leaning towards paying down the mortgage, while my current rate has me starting to be on the fence.

Created a new thread to ask at what rate does that change for each person. Very curious this groups feedback in that thread:

https://forum.mrmoneymustache.com/real-estate-and-landlording/what-is-the-lowest-rate-you-would-aggressively-pay-down-your-mortgage-(us)/msg3298517/#msg3298517

[Dutch Comfort]

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
September 2024: EUR 30,500 repayment date 10/01/29
October 2024: EUR 30,000 repayment date 10/01/29 - 75% MARK!!!!!

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

So we repaid 25% of the original amount in 2.5 years. Another 2.5 years (or earlier) should get us to 0.

@Dutch Comfort,  Great!  Get to 5 digits by Dec 2025.  Pay-off mid 2026.   You’ll need to have a good vacation in 2026 before the kid(s) go to university!  😉

Oh, yes...... the kids already picked a destination: the US!!!!! Our son wants to do New York and San Francisco, our daughter has not made her mind up yet, but as long as we incorporate Chinatown in the plans she is OK! We need to start saving for that!

[lcmac32]

Original Loan Amt $484,000.00

Mar 24  $483,072.97 ($500.00 add. principal)
Apr 24  $482,140.83 ($500.00 add. principal)
May 24 $481,703.54 (0.00 add. principal)
Jun 24  $481,112.22 ($151.61 add. principal)
Jul 24   $480,517.64 ($151.61 add. principal)
Aug 24 $479,919.78 ($151.61 add. principal)
Sep 24 $479,318.62 ($151.61 add. principal)
Oct 24 $478,314.14 ($551.61 add. principal)

Looks like I am averaging $207.00 additional principle/month.  Hopefully, will get that average up to $500 by end of first 12 payments. 

[Money Badger]

Original Loan Amt $484,000.00

Mar 24  $483,072.97 ($500.00 add. principal)
Apr 24  $482,140.83 ($500.00 add. principal)
May 24 $481,703.54 (0.00 add. principal)
Jun 24  $481,112.22 ($151.61 add. principal)
Jul 24   $480,517.64 ($151.61 add. principal)
Aug 24 $479,919.78 ($151.61 add. principal)
Sep 24 $479,318.62 ($151.61 add. principal)
Oct 24 $478,314.14 ($551.61 add. principal)

Looks like I am averaging $207.00 additional principle/month.  Hopefully, will get that average up to $500 by end of first 12 payments.

High COLA area?   How do you either get a bigger $ shovel or plan to exit with enhanced equity from the leverage?   As long as there is an exit strategy other than “living with debt”.   Breathe, we’re here to help!

[lcmac32]

Original Loan Amt $484,000.00

Mar 24  $483,072.97 ($500.00 add. principal)
Apr 24  $482,140.83 ($500.00 add. principal)
May 24 $481,703.54 (0.00 add. principal)
Jun 24  $481,112.22 ($151.61 add. principal)
Jul 24   $480,517.64 ($151.61 add. principal)
Aug 24 $479,919.78 ($151.61 add. principal)
Sep 24 $479,318.62 ($151.61 add. principal)
Oct 24 $478,314.14 ($551.61 add. principal)

Looks like I am averaging $207.00 additional principle/month.  Hopefully, will get that average up to $500 by end of first 12 payments.

High COLA area?   How do you either get a bigger $ shovel or plan to exit with enhanced equity from the leverage?   As long as there is an exit strategy other than “living with debt”.   Breathe, we’re here to help!

@Money Badger - Thanks for the reply.  I did make a move from one medium - high COLA to roughly the same COLA.  I did it for a job change which was about same income in year one (partial year), a 30% increase in year two, and on track for a 54% increase YOY for this calendar year.  So, I did get a bigger shovel, but spent a lot of money this year on new house down payment, second remodel in five years, two weddings, and overseas travel for another wedding. 

I am wrapping up remaining debt incurred on total of all of those spend items next month (about $25k in total debt spend).  The plan will be to exit the medium high COLA back to home state that is very low COLA in 5-7 years. I am impatiently ready to do battle on the mtg balance.  I had a sweet 2.00% rate on last home, and 6.625% on this one.  That rate is what put me in this club.  I was in the other club when I had the low rate.  I want to aggressively push down the balance so that if rates go down, I will have a large reduction in monthly expense on the mtg when I refi.     

I do want to emphasize, that I am very happy here and could already sell the home at a profit over and above what I put into it.  All of my adult children live within an hour drive of me versus 12 hours before the move.  I am doing some economic outpatient care for them, but only when they are at a significant (greater than 20%) savings rate. I could sell and LEAN (very lean) FIRE at this point, but the 5-7  years of continued working comes from furthering their FIRE journeys while I can really impact it in their young-ish adult years.  Of course, I am still funding my own FIRE stash as well.   

[AFrugalGuy]

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
May 31, 2024: $445,958.51
June 30, 2024: $441,843.89
July 31, 2024: $437,899.61
August 31, 2024: $431,116.16
September 30, 2024: $427,061.55

[ca-rn]

I'm down to 38k mortgage left at 3%!!!

Have about 12k saved in a Federal MMF and additional 7k index distribution to roll nto the payoff Federal MMF = 19k total w/additional 1k added per month.

Want to pay it off by end of this year or beginning next year but that would require selling some index funds to do so...

With an additional index distribution at end of year planned to be rolled into payoff fund, it should get me closer to being mortgage free before FIRE!

[Money Badger]

@lcmac32,   A lot going on, but glad to hear the $ shovel is bigger and you're turning it towards reducing that mortgage at a higher rate soon as you help the kids start their FIRE journey.  !  Any form of FIRE isn't as much fun with a significant debt to service every month though.   But if this remains in your plan and re-fi rates aren't materially better next year, then an idea to reduce the mandatory outflow of a mortgage you've paid down significantly is to recast the loan if possible with the loan servicer.   Usually for a very small administrative fee rather than a complete refi set of costs (even if the latter are blended into the new loan APR).   Useful to be able to divert resulting free cash flow to investments and ultimately shorten the FIRE journey.  And/or you can choose to pay down the balance more aggressively as the interest rates, risk tolerances and FIRE plan determine as well.   Be well, be free!

[Money Badger]

I'm down to 38k mortgage left at 3%!!!

Have about 12k saved in a Federal MMF and additional 7k index distribution to roll nto the payoff Federal MMF = 19k total w/additional 1k added per month.

Want to pay it off by end of this year or beginning next year but that would require selling some index funds to do so...

With an additional index distribution at end of year planned to be rolled into payoff fund, it should get me closer to being mortgage free before FIRE!

This is significant badassity!  :-)