Author Topic: Mortgage Payoff Club!!  (Read 226165 times)

KBecks2

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Re: Mortgage Payoff Club!!
« Reply #400 on: June 16, 2015, 02:12:58 PM »
We're putting $1600 on the mortgage this month.  Balance will be about $112k.  I'm trying to put our extra on this and get it done. 

rjbf65

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Re: Mortgage Payoff Club!!
« Reply #401 on: June 18, 2015, 08:19:37 PM »
I'll join.

Started June 2014 at 71k.

It's currently $55k.  Goal is to finish it off by next June.   Have 20k in cash that would finish it off by then.  We are currently investing 15% as well.   Basically doing the Dave Ramsey plan.   

LanceThrustington

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Re: Mortgage Payoff Club!!
« Reply #402 on: June 22, 2015, 06:57:52 PM »
I'm in too

Started in Feb with about 90K. 50% share of a $560k house in Melbourne Australia, interest rates are about 4.7% here
so its an easier decision to pay it off now rather than ivest.

Trying to smash down the loan ASAP preferably before the end of 2016 to then start saving for a family / future

down to 66,400 as of today.

Average wage, just funneling everything into it.

Rheagar

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Re: Mortgage Payoff Club!!
« Reply #403 on: June 23, 2015, 01:07:26 PM »
I'm in.

We bought our house in Nov 2015, mortgage of ~123k. We have ~117k left on the mortgage, but we are squirreling money away in  an ETF with the intent of paying off the mortgage in one lump sum once we have enough. The rationale is that we can hope to earn more in the market than we would save on interest, so we are sort of finding a happy medium in the pay it off/don't pay it off debate.

We currently have ~62k in that account, so 55k left to go! My very optimistic goal is April of next year. Hoping for bonuses to help out!

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #404 on: June 27, 2015, 04:12:55 PM »
Pay week!  Down to 65.3k.

61k at time of this post.

Now at a little over 50k.  Wife is a teacher and gets a lump sum check at the end of the school year.  Put all of it into mortage.

Right now I'm ahead of schedule.  This is way easier than I thought it would be so far.

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #405 on: June 27, 2015, 04:30:44 PM »
Down to $139k (!!!)

Goal for 2015 is to have it down to $105k by year's end. I feel we can do this, while still stashing in other accounts as well. Like to keep it balanced.
Down to $131,600
:)
Adjusting our year-end goal to <$110,000. Decided to put a little extra into the RRSPs this year.

We're down to $126,000. We're both teachers & have some cash saved up for over the summer (neither of us will get paid again until Sept 15th). I think we saved too much, so will put the surplus on the mortgage in Sept. That should be a good chunk. Still on track to be <$110,000 by Dec 31.

WWMD

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Re: Mortgage Payoff Club!!
« Reply #406 on: July 01, 2015, 11:11:29 AM »
Ok,

I'm in. I have been waffling over this for years now, just steadily saving. At this point in time if I got a rate of return of over 3.25% on my investments it would make sense to keep the money there and not pay off the mortgage. When all is said and done, my current loan would land me 10 years from now having paid $30,000 in interest. Nothing to sneeze at, but not an insurmountable loss.

BUT, I see a lot of benefits to paying off the mortgage instead:
  • No debt—you just can't beat no debt on the books.
  • I still don't trust the market. I have investments there now and I will continue to put investments there after I pay off the mortgage, but I feel like you just never know.
  • The freedom of not having a monthly payment would mentally provide me with more job/life flexibility.

I have about $60,000 to go if I want to keep a year's living expenses worth of savings/investments on deck for safety.

I believe it. No matter how many times I look at it and the financials tell me to invest instead, I believe in the peace-of-mind power of a mortgage-free existence.
« Last Edit: July 01, 2015, 12:31:37 PM by WWMD »

frugalJD

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Re: Mortgage Payoff Club!!
« Reply #407 on: July 01, 2015, 11:25:42 AM »
Midway through 2015, we got it down to $144k.  Our goal for 2015 was to cut it to $128k by year end.  Now aiming for $120k!

-JD

asauer

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Re: Mortgage Payoff Club!!
« Reply #408 on: July 07, 2015, 12:11:06 PM »
Woohoo!  Down to 124,600!  This marks our half way point through the mortgage.  All down hill from here!

Farmgirl

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Re: Mortgage Payoff Club!!
« Reply #409 on: July 07, 2015, 01:30:54 PM »
20 payments left.  I can't wait.  The game changes seriously for us after that.

wauske

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Re: Mortgage Payoff Club!!
« Reply #410 on: July 07, 2015, 01:50:26 PM »
Pay week!  Down to 65.3k.

61k at time of this post.

Now at a little over 50k.  Wife is a teacher and gets a lump sum check at the end of the school year.  Put all of it into mortage.

Right now I'm ahead of schedule.  This is way easier than I thought it would be so far.

Wow, you're going quite fast, nearly 15k in a few monts 0_0;

Ours is doing well too, got a tax return and made some smaller payments so we're down to just under 33k. 4.5k to go this year which should be easy!
Everything I say is my personal opinion which is based on my subjective experience.

hdatontodo

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Re: Mortgage Payoff Club!!
« Reply #411 on: July 07, 2015, 02:46:42 PM »
[January] $99K mortgage balance...

July 7, $27K left. 6 more payments from Aug->Jan. I hope my job holds out.

Fiveyearclub

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Re: Mortgage Payoff Club!!
« Reply #412 on: July 07, 2015, 11:13:11 PM »
Hi.  SW engineer here.  Income $140k.  $106k left on a 10 year fixed on $117k.  Property worth $350k.  Originally purchased in 2009, 30 year fixed on $122k.  What a waste!  Refinanced in 2014.  I want to start a business, so I want to minimize living expenses.  Really difficult in San Jose, CA.  Instead of thinking about my life as arbitraged percentages, I just want to maximize my chance of success to start a business that allows me to make more money than the stock market could ever return.  I will always need a place to live, so might as well get it out of the way now.

Instead of paying the mortgage directly, I think I will just pile up money over the next 18 months, just in case I end up moving for some unknown reason... Job change, whatever.  With a monthly principal portion around $850 in theory I will be putting around $5700 total toward the mortgage.  I will also be selling from my hoard of collectibles, worth $50k-$100k to accelerate the process.  $2000 a month and I finish in 12 months.  I have spent a lot of money... But at least it was on physical items I can resell.

I have around $35k in investments outside retirement for safety. I think I can finish this before the end of 2016 as long as I sell enough stuff.  It's kind of a bummer to be doing this alone, but I guess it has freedom also. 

I'll be 31 when this finishes.  Houses here are $750k or more, and my net worth will be only around $450k including the $350k condo.  Too high a percentage in real estate!  I've really had to change my expectations about what having a family will eventually be like.  3 people in 784 sq. ft.  Just have to keep reminding myself that it would be normal in Hong Kong.

I've really changed my life a lot in the last 18 months.  Attached is a graph showing how I paid off my debt and then started saving like crazy.  My name is five year club because I think a comprehensive, meaningful program can be developed to help people completely change their money and happiness situation in about 5 years.  1 is too short and 20 is too long.  I'm 1.5 years in, and so far it's kicking ass!  It's more fun to do it with other people...
« Last Edit: July 07, 2015, 11:21:12 PM by Fiveyearclub »

plainjane

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Re: Mortgage Payoff Club!!
« Reply #413 on: July 08, 2015, 07:37:57 AM »
And we're under 30k, 1 year left in the term (our second 5 year term), just over 1 year left on amortization.  We're doing some extensive exterior work on the house in August so we have a decent contingency fund set aside if something horrible is found (the house is a century old, so it's best to assume something will be found).  If that goes smoothly, we'll throw the contingency at the mortgage and be done that much sooner. 
Using procrastination to my advantage since 2001.

Comar

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Re: Mortgage Payoff Club!!
« Reply #414 on: July 08, 2015, 02:55:04 PM »
I'm joining in.

I have a house in Iceland. Bought it for 123k dollars (16.5 million icelandic crowns) in 2012. Started making extra payments early last year and am now down to 88.4k dollars. Currently I throw about 560 dollars at it each month. I have also thrown some extra cash at the mortage, such as tax repayments and such.

From the start I have used the strategy of adding to the payments each month. Each downpayment reduces the monthly mortage payment so for the next downpayment I have added the extra dollars the mortage payment has been reduced. Call it a snowball strategy?

My goal is to KO the mortage in 5 years. I'm turning 30 this month and want it finished before I turn 35.

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #415 on: July 09, 2015, 08:27:50 PM »
Halfway through 2015 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

We are hammering this baby down!  We are on track for a balance of about $285,000 by year end if all goes as planned and pushing hard for a Sept. 2018 finish.  We've paid off over $110,000 since we started in 2013, while continuing to invest for retirement - whoot!!
« Last Edit: July 09, 2015, 08:29:37 PM by frizzywhiskers »

PharmaStache

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Re: Mortgage Payoff Club!!
« Reply #416 on: July 09, 2015, 08:33:22 PM »
Hi!  We are not paying off our mortgage super aggressively, but still want to pay it off early.

2009: 165k
2014: 110k
2015: 90k
2019: Goal to be at 0 (to coincide with our current 5 year term ending)

Bee21

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Re: Mortgage Payoff Club!!
« Reply #417 on: July 27, 2015, 05:01:04 PM »
Newbie here- I'm totally in! The plan is to pay off the last 25k by the end of the year and be mortgage free. I live w a very non-mustachian Husband and paying off the mortgage early is the only investment decision I managed to persuade him to make.

seemsright

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Re: Mortgage Payoff Club!!
« Reply #418 on: July 28, 2015, 01:32:44 PM »
26 days!

The only reason we have to wait is because we have a prepayment penalty. But we are very excited.
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Neustache

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Re: Mortgage Payoff Club!!
« Reply #419 on: July 28, 2015, 02:08:28 PM »
^congrats seemsright!! 

What was your beginning balance, and how long did it take you to pay it off? 

plainjane

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Re: Mortgage Payoff Club!!
« Reply #420 on: July 29, 2015, 09:19:55 AM »
Newbie here- I'm totally in! The plan is to pay off the last 25k by the end of the year and be mortgage free. I live w a very non-mustachian Husband and paying off the mortgage early is the only investment decision I managed to persuade him to make.

Have you started to discuss what you will do with the extra cash flow?  With a non-mustachian husband it's probably better to get it agreed upon before he starts spending it all.
Using procrastination to my advantage since 2001.

seemsright

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Re: Mortgage Payoff Club!!
« Reply #421 on: July 29, 2015, 03:17:49 PM »
^congrats seemsright!! 

What was your beginning balance, and how long did it take you to pay it off?
We took 13 years to pay it off we started at $148K.

We also had student loans that we had to pay it back my BS degree cost us 45K. Hubby had a side hussel the last few years that took a ton of time but we were able to bank the profit to pay off the house.
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K-ice

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Re: Mortgage Payoff Club!!
« Reply #422 on: July 31, 2015, 11:15:27 AM »
Started with $325,000 at 4% for 25y.

Threw an average of 35K at it every year. The max allowed was 48K but we couldn't come up with that. 

I have noticed that most long term mortgages can be paid off within 5 years if you max out, but stay within, the bank's pre-pay limits.

At renewal time (5y mark) we were not happy with the renewal terms.

So SO paid off half. I threw a good chunk down and got a LOC at 1% on the remaining.  Paid that off in 6 months!!

We basically had no additional savings during this time so that could hurt our investments in the longterm but being mtg free feels good!
« Last Edit: July 31, 2015, 11:18:37 AM by K-ice »

hdatontodo

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Re: Mortgage Payoff Club!!
« Reply #423 on: August 02, 2015, 07:08:51 AM »
[January] $99K mortgage balance...
July 7, $27K left. 6 more payments from Aug->Jan. I hope my job holds out.

So the Mrs has been getting irritated about BOA not properly posting occasional Principal Payment Only checks that I mail in after the monthly $5K automatic payments ($2K + 3K extra) on our 7-year-old, 15-year-loan. I have to get her to call them about her loan and repost it.

So also gets irritated when I have her move the automate payment date or change the pay amount based on pay dates and cash flow. (She likes just to have her automatic-payment set up and spend her evenings with hours of Facebook and Real Housewives. )

So here's the facepunch-worthy action I took. I made a normal August $2K payment. I told her to cancel her $5K automatic payment. I borrowed $20K with a short term 401K loan and did a principal payment, leaving the mortgage balance at under $5K. Later this week, she'll get a payoff figure and bring them a cashiers check from her Wells Fargo account for the payoff.

My original plan was to have the mortgage paid off by the beginning of January 2016. Now, it will be paid off in August, and I'll have payroll deductions until January. I also told her that I'm not going to give her any money monthly until next year so I can build my savings back up. I had used my savings, person property sales (Mustang, motor scooter, etc) and almost all my income to get this year's starting balance of $99K paid off.

The incentive for starting this project in 2014, when we owed $166K, was that I did a cash flow sheet, and found that paying off the loan and eliminating the payment (and $4,500/year interest) would make for a better cash flow if I got laid off in 2016 (after the contract that pays my salary is gone). We could live on her salary, and even if she wanted me to take 1/2 the family expenses out of my 401K (using the age 55 rule), it wouldn't be much.

« Last Edit: August 02, 2015, 07:20:23 AM by hdatontodo »

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #424 on: August 02, 2015, 08:40:35 PM »
^^^
That is all really confusing.  I have KeyBank and I do everything on the website.  Anytime I make a payment greater than the minimum due it asks me if I want to apply it to principal or apply it to next monthly payment.  I also cancelled auto debit since I began my payoff project.

rjbf65

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Re: Mortgage Payoff Club!!
« Reply #425 on: August 06, 2015, 11:31:21 AM »
I'll join.

Started June 2014 at 71k.

It's currently $55k.  Goal is to finish it off by next June.   Have 20k in cash that would finish it off by then.  We are currently investing 15% as well.   Basically doing the Dave Ramsey plan.

Currently down to $51,500.  Hoping to get under $50K a month from today.

Comar

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Re: Mortgage Payoff Club!!
« Reply #426 on: August 08, 2015, 06:07:33 PM »
I'm joining in.

I have a house in Iceland. Bought it for 123k dollars (16.5 million icelandic crowns) in 2012. Started making extra payments early last year and am now down to 88.4k dollars. Currently I throw about 560 dollars at it each month. I have also thrown some extra cash at the mortage, such as tax repayments and such.

From the start I have used the strategy of adding to the payments each month. Each downpayment reduces the monthly mortage payment so for the next downpayment I have added the extra dollars the mortage payment has been reduced. Call it a snowball strategy?

My goal is to KO the mortage in 5 years. I'm turning 30 this month and want it finished before I turn 35.
87.5 k left. Paid 562 extra this month.

Neustache

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Re: Mortgage Payoff Club!!
« Reply #427 on: August 10, 2015, 04:33:55 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.


Current principle:  $103,457.43 - PMI is OFF

Now I switch gears to max out IRAs for 2015, then in 2016 we will have to payoff our foundation repairs (currently at 0%), max out IRA's and pay for school for me...so not a lot of progress will happen on the mortgage front.  I'll see you all again sometime in 2017.  I'll still watch and read others make progress towards their goals.  Good luck, everyone!!



eyePod

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Re: Mortgage Payoff Club!!
« Reply #428 on: August 10, 2015, 05:54:06 PM »
OH oh, for PMI folk.

We are currently at 80.1% after throwing another 2k at the mortgage. I contacted my bank to find out the process for removal of PMI.

We had put 10% down last July, so we're just over a year.

They said that if we are at 80% of the loan value, then we could request PMI cancellation with 2 years of payments. So we're way ahead of that. If we're below 78%, then we can request it then. So that's another bit of change now that we have to come up with. I only talked with one of the loan guys at our bank, not the actual escrow group though.

Then we have to get it appraised, and then we have to figure out what happens if the home value is lower and all that. It's a bunch of malarky. The inspection will cost between $400 and $450, but that saves us $5k over the rest of the loan.

Really frustrated but we knew that we'd be a year out till we had the extra 10% based on the new job and all that, so we knew what we were getting into and the bank needs to de-risk. I get it. I just wish it wasn't so damn hard to get out of this once you're in. It's definitely convoluted for a reason.

We probably plan on paying the extra $81 per month that goes to PMI to our loan principal. We don't know if we're going to pay off the whole home loan early, but if the market is only staying status quo, that might be our plan of attack.
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Neustache

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Re: Mortgage Payoff Club!!
« Reply #429 on: August 10, 2015, 07:20:45 PM »
Oh man, that sucks.   My credit union is nothing like that...just as soon as you drop down below 80% they take it off.  I e-mailed their loan servicing department and it was gone within 24 hours.  They don't require an appraisal or anything like that, unless you refi. 

I'm sorry getting rid of your PMI is such a PITA, eyePod!

eyePod

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Re: Mortgage Payoff Club!!
« Reply #430 on: August 11, 2015, 05:58:25 AM »
Oh man, that sucks.   My credit union is nothing like that...just as soon as you drop down below 80% they take it off.  I e-mailed their loan servicing department and it was gone within 24 hours.  They don't require an appraisal or anything like that, unless you refi. 

I'm sorry getting rid of your PMI is such a PITA, eyePod!

Maybe I was just talking to the wrong person. I'm going to call the loan and escrow department to see if they can make it any easier. It can't hurt.
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asauer

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Re: Mortgage Payoff Club!!
« Reply #431 on: August 11, 2015, 07:13:09 AM »
Woohoo!  Down to 117,930!  Started 3 years ago at 249K!  Saw the principal to interest number flip to the next hundred too- I get way too excited about that.

Neustache

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Re: Mortgage Payoff Club!!
« Reply #432 on: August 11, 2015, 07:16:06 AM »
eyePod...yeah...double check.  I've only done it through my credit union, I have no idea what the process is for other banks.  My credit union also pays me a bonus each year depending on what accounts I have with them.  Last year it was over $400 and this year will be around $300 (no car loan this year, so it's less).  I love credit unions.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #433 on: August 12, 2015, 09:27:06 AM »
I'm joining the club!!  I want to be out from under the crushing debt of my mortgage.
I've been on the fence about this for a few years and stashing all of my rental income into a sinking fund invested in VTSAX.  Last month I sold all of the sinking fund and I took a big chunk from a cash account to pay down the mortgage prior to a reamortization.  Goal is to pay the mortgage down to a point that I could afford payments even if I'm not employed.  That might be all the way to zero, or it might not.  Even with my plans to continue paying 1000 extra each month, I'm still a looooong way away from retiring this debt, so I'm trying to speed that up.  I still have a long time to figure out the end result.

I'm in a HCOL city in a big house.  I'll show progress in terms of % paid off against initial home value (equity against initial sale price).

Progress (%equity against initial sale price)
  • 06/2012 - 25%  (downpayment & first monthly payment)
  • 06/2013 - 27%  (now paying a few hundred extra monthly)
  • 06/2014 - 30%  (now paying 1000 extra each month)
  • 06/2015 - 33%  (still paying 1000 extra each month)
  • 08/2015 - 46%  (big fat payment in preparation for a requested recast next quarter)
Sometimes nothing can be a real cool hand

Neustache

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Re: Mortgage Payoff Club!!
« Reply #434 on: August 12, 2015, 11:23:52 AM »
^Nice progress, BlueHouse!

I'm considering a mortgage recast eventually, too.  But I'm going to go back to work fulltime right when it'd be worth it to do the recast, and by then we'd only have a year or two left on the mortgage with my extra earnings.  We'll see when we get there.

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #435 on: August 12, 2015, 03:18:12 PM »
Pay week!  Down to 65.3k.

61k at time of this post.

Now at a little over 50k.  Wife is a teacher and gets a lump sum check at the end of the school year.  Put all of it into mortage.

Right now I'm ahead of schedule.  This is way easier than I thought it would be so far.

46.1k.  Kind of in the doldrums right now with only one paycheck coming in and had some unexpected expenses pop up.  Should be ready to hit it hard in September when wife goes back to work and gets a small raise.  Payoff before the end of the calendar year is not out of the question...
« Last Edit: August 12, 2015, 03:21:58 PM by Debts_of_Despair »

tonysemail

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Re: Mortgage Payoff Club!!
« Reply #436 on: August 20, 2015, 12:17:52 PM »
Earlier this year, we refinanced our home with cash out for the purposes of paying off our rental property.
We finally made it to the finish line this week!
Went to the post office and got a money order for the pay off balance and sent it in via certified mail.  Quick and easy.
This rental property was bought in 2007 at the height of the housing market :(
Now it's generating a tidy profit which we will use to pay down the mortgage on another rental property.
My balance on mortgage #2 is $213,425.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #437 on: August 20, 2015, 07:24:18 PM »
Earlier this year, we refinanced our home with cash out for the purposes of paying off our rental property.
We finally made it to the finish line this week!
Went to the post office and got a money order for the pay off balance and sent it in via certified mail.  Quick and easy.
This rental property was bought in 2007 at the height of the housing market :(
Now it's generating a tidy profit which we will use to pay down the mortgage on another rental property.
My balance on mortgage #2 is $213,425.
I don't understand the purpose in paying off a rental prop before your own home. I use the expenses on my rental to offset rental income. I can't do that with my personal property. What am I missing? 
Sometimes nothing can be a real cool hand

eyePod

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Re: Mortgage Payoff Club!!
« Reply #438 on: August 21, 2015, 08:04:58 AM »
Oh man, that sucks.   My credit union is nothing like that...just as soon as you drop down below 80% they take it off.  I e-mailed their loan servicing department and it was gone within 24 hours.  They don't require an appraisal or anything like that, unless you refi. 

I'm sorry getting rid of your PMI is such a PITA, eyePod!

Maybe I was just talking to the wrong person. I'm going to call the loan and escrow department to see if they can make it any easier. It can't hurt.

I called the actual department that handles this stuff and all of the information I was given was wrong. It might have been true if I wanted to remove the escrow account, but for PMI only, I just needed to have a letter written and fax it over. We just went over the 80% mark (79.99) so we sent the letter first thing on Monday morning. I'm going to call next week since we haven't heard anything yet.

Thanks for letting me know that it shouldn't have been that hard.

Lesson learned - loan officers are very knowledgeable at getting a sale. They don't know how their own systems work otherwise.
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tonysemail

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Re: Mortgage Payoff Club!!
« Reply #439 on: August 21, 2015, 11:14:57 AM »
I don't understand the purpose in paying off a rental prop before your own home. I use the expenses on my rental to offset rental income. I can't do that with my personal property. What am I missing?

the mortgage interest on my house can be deducted from my W-2 income.
Are you using itemized deductions or standard deduction?

tomsang

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Re: Mortgage Payoff Club!!
« Reply #440 on: August 22, 2015, 12:09:44 AM »
I don't understand the purpose in paying off a rental prop before your own home. I use the expenses on my rental to offset rental income. I can't do that with my personal property. What am I missing?

the mortgage interest on my house can be deducted from my W-2 income.
Are you using itemized deductions or standard deduction?

What country do you live in?  Sounds like the US, as you said W-2, but mortgage interest does not get deducted from W-2 income. It becomes an itemized deduction if they are greater than the standard deduction.

Offsetting rental income is usually better if your AGI is below a $100,000 and the losses are below $25,000. Also the bankruptcy rules would probably say it is better to have a paid off personal residence vs a rental.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #441 on: August 22, 2015, 05:03:05 AM »
I don't understand the purpose in paying off a rental prop before your own home. I use the expenses on my rental to offset rental income. I can't do that with my personal property. What am I missing?

the mortgage interest on my house can be deducted from my W-2 income.
Are you using itemized deductions or standard deduction?

What country do you live in?  Sounds like the US, as you said W-2, but mortgage interest does not get deducted from W-2 income. It becomes an itemized deduction if they are greater than the standard deduction.

Offsetting rental income is usually better if your AGI is below a $100,000 and the losses are below $25,000. Also the bankruptcy rules would probably say it is better to have a paid off personal residence vs a rental.
I do itemize for the house and other stuff. My AGI is above 100 and being able to offset rental income is about the only thing that helps out on that property. I'll pay off my personal property long before I pay off the rental. If I go belly up and have to risk losing one, I don't want it to be my personal home! 
« Last Edit: August 22, 2015, 05:06:21 AM by BlueHouse »
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LadyMaWhiskers

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Re: Mortgage Payoff Club!!
« Reply #442 on: August 22, 2015, 08:30:51 AM »
I did a similar thing to tonysemail - took a cash-out on a paid-for personal residence to pay off a rental earlier this year. Now trying to go full-steam and payoff the mortgage in 7 years or less.

Taxes were roughly a wash - interest on Schedule E or Schedule A (I'm in the U.S.) My rational came down to the type of loan I could get on the properties.

Home loan: Fixed rate @ 3.25% interest
Commercial loan on rental (12-unti residential): 5.5% fixed for 5 year (through 2018) then yearly readjustments and a balloon at 10yrs.

Even if the rental loan were a 1-4 family, the rate is higher when you don't live there. If equity is tight, it would be better to have the home paid for, but if one whole property is paid off, equity seems good!



BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #443 on: August 23, 2015, 08:12:11 PM »
I did a similar thing to tonysemail - took a cash-out on a paid-for personal residence to pay off a rental earlier this year. Now trying to go full-steam and payoff the mortgage in 7 years or less.

Taxes were roughly a wash - interest on Schedule E or Schedule A (I'm in the U.S.) My rational came down to the type of loan I could get on the properties.

Home loan: Fixed rate @ 3.25% interest
Commercial loan on rental (12-unti residential): 5.5% fixed for 5 year (through 2018) then yearly readjustments and a balloon at 10yrs.

Even if the rental loan were a 1-4 family, the rate is higher when you don't live there. If equity is tight, it would be better to have the home paid for, but if one whole property is paid off, equity seems good!
Oh yes, I wasn't considering the different interest rates. Mine is still based on a personal rate because I initially lived in it. I would like to refinance, but don't want the higher rate. Maybe not a bad option for me after all. Need to think on that some more. Thanks! 
Sometimes nothing can be a real cool hand

plainjane

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Re: Mortgage Payoff Club!!
« Reply #444 on: August 25, 2015, 08:48:25 PM »
I've decided to shift my approach to paying off the mortgage.  I had been planning on drawing down the house eFund, using that savings to pay down the mortgage, and then rebuilding that fund.

I've decided to keep that fund high as a hedge against uncertainty, but I'll stop adding to it.  Instead, I'll redirect the cash flow that would have gone to rebuilding to fund to the mortgage.  That should put us on track for final pay-off March 2016 if all goes well.  And then our annual expenses will be _sweet_.
Using procrastination to my advantage since 2001.

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #445 on: August 25, 2015, 09:06:55 PM »
We paid off our home mortgage about 5 years ago.  It was a great feeling!  I can promise you all it's worth working hard to make happen!


We're taking out a home equity loan to finance purchasing another rental property and its renovation. 
Our intent is to pay it off within 5 years, maybe less, if the other rental properties do well.

seemsright

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Re: Mortgage Payoff Club!!
« Reply #446 on: August 26, 2015, 09:14:13 PM »
Done...paid it off today!

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K-ice

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Re: Mortgage Payoff Club!!
« Reply #447 on: August 26, 2015, 09:35:14 PM »
@ seemsright

Congrats!

plainjane

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Re: Mortgage Payoff Club!!
« Reply #448 on: August 27, 2015, 04:32:24 AM »
Done...paid it off today!

Congratulations!
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eyePod

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Re: Mortgage Payoff Club!!
« Reply #449 on: August 28, 2015, 06:15:11 AM »
PMI Update. I received wrong information again from the 2nd person. Now they say that I do need to be at 78% since I don't have 24 months of payment history. If I were at 80% and had the 2 years of payment history I'd be fine. So even though I've paid off 10% in just about a year, they really need that extra 2%. I won't have the 5k for a few months so I'm super frustrated. They're basically milking me for a few hundred dollars of PMI. I let them know that when I refinance, there's literally no chance that I'll work with this bank. It shouldn't be this hard to remove PMI.
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