Author Topic: Mortgage Payoff Club!!  (Read 325492 times)

Faraday

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Re: Mortgage Payoff Club!!
« Reply #550 on: October 21, 2015, 11:43:13 PM »
We killed our mortgage about 5 years before I FIRE'd...really, that was the point at which it was "all systems go" to FI...and beyond. This thread provides wonderful nostalgia and a nice reminder about the excitement created by watching a mortgage balance dwindle until it is GONE.

Jon - thanks for chiming in on this thread. It truly helps when someone who is already FIRE touches back base to let us know we are on the right track.
FIRE in 2020.

YoungGranny

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Re: Mortgage Payoff Club!!
« Reply #551 on: October 23, 2015, 11:23:47 AM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.

Faraday

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Re: Mortgage Payoff Club!!
« Reply #552 on: October 23, 2015, 01:21:00 PM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.

ROCK ON YoungGranny! Same here, I've got the refi goal for January. You are right, you need an interim goal or a milestone to work to, so you can "feel the progress".
FIRE in 2020.

K-ice

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Re: Mortgage Payoff Club!!
« Reply #553 on: October 23, 2015, 03:14:34 PM »
We killed our mortgage about 5 years before I FIRE'd...

I would like to think I am on the same track. Mtg is gone as of last year and maybe 4-5 years until FI maybe RE.

I wonder if there is some math behind that?  If you can kill the mtg, then keep saving those payments in investments for 5 years after being mtg free. At that point it is probably a good time to retire. It would all depend on how big your mortgage payments were....

mies

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Re: Mortgage Payoff Club!!
« Reply #554 on: October 23, 2015, 06:25:54 PM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.

Breaking it up in to smaller goals is a great idea YoungGranny. There are a lot of ways to do it. You can aim for a certain amount of principal to be gone by the end of the year. You can try to get the principal portion of your monthly payment up to a certain amount. You can try to get the interest portion of your monthly payment under a certain amount.
 
I've found using amortization calculators that are available online help me to set these types of goals. It helps make the money you are saving seem more real too since it's laid out in front of you in black and white.
Less is more.

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #555 on: October 23, 2015, 10:59:17 PM »
The latest...   The option of cash in $135K and refi to a HELOC is boiling down to choosing either a 3% fixed equity loan or 4-ish% flexible HELOC line with options on fixed and flexible draws in the loan.    The following are rough numbers so don't pick...   A 15 year amortization on a fixed loan drops the monthly interest $300 a month and the total P+I monthly nut from $1100 to just under $600 after the cash in.   No risk on the $130k ever after and that frees up $500+ monthly cash flow and saves $250 in the remaining HELOC balance's interest amortization (despite higher % rate), and the ability to accelerate the $100k payoff to meet my "done in '21" FIRE goal.   I know investing could grow $130K faster but we save well already to catch back up and I sleep better.    Do it??

Imonaboat

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Re: Mortgage Payoff Club!!
« Reply #556 on: October 26, 2015, 02:53:04 AM »
Paid off our home last month ;)

We spent 2 years looking for the perfect house, saving tons of money while occasionally submitted very low ball offers on a house we liked. We finally found the perfect house and they accepted an offer of $200,000, down from the asking price of $235k. Since we had been saving for 2 years I was able to put 50% plus closing costs down.

After we moved in we made a budget based on the least amount of money I could possible earn. Everything extra went into the house, including last years tax return and my retention bonus plus a few weeks of unexpected overtime work. I also put in 2 full paychecks since we receive 26 per year.

First payment on the $100,000 mortgage was on June 16th, 2014
Final payoff payment was on October 6th 2015

Ended up paying about $6,000 for the loan including interest (3.625% @ 15 years).

Age 33
Married with 2 children
Total family salary around $120,000
Net worth was below $30k 4 years ago, Around $275k today with no outside sources of income.

Next step is reducing our budget further/again (It started slipping as soon as we were close to paying the house off) and to start investing
« Last Edit: October 26, 2015, 03:14:45 AM by Imonaboat »

YoungGranny

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Re: Mortgage Payoff Club!!
« Reply #557 on: October 26, 2015, 06:42:40 AM »
mefla - any reason you're waiting until January to refinance? Just out of my own curiousity :)

mies - I LOVE amortization tables :) I actually enjoy building my own in excel so I can track numbers better and it's how I convinced my SO to pay down the mortgage faster and refinance. We're on track to pay $20,000 in interest over the life of the loan vs the $130,000 originally projected with our 30 year mortgage. (plus $1,400 we paid in PMI but at least that's off now....face punch for sure!)


Congratulations Imonaboat! Must feel nice to have that sucker paid off!!

Faraday

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Re: Mortgage Payoff Club!!
« Reply #558 on: October 27, 2015, 10:42:24 PM »
mefla - any reason you're waiting until January to refinance? Just out of my own curiousity :)

mies - I LOVE amortization tables :) I actually enjoy building my own in excel so I can track numbers better and it's how I convinced my SO to pay down the mortgage faster and refinance. We're on track to pay $20,000 in interest over the life of the loan vs the $130,000 originally projected with our 30 year mortgage. (plus $1,400 we paid in PMI but at least

YoungGranny: two reasons:
1) Principal will be at-or-below $100k, so a refi will free up at least $400/month of cash flow. We will then be able to live on one salary and save the other.
2) it has been my experience that interest rates are at their lowest in January-February months.
FIRE in 2020.

freeatlast

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Facing Layoff but I am in Re: Mortgage Payoff Club!!
« Reply #559 on: October 29, 2015, 01:29:33 PM »
I may be facing a layoff, but luckily I have another income stream. If it happens, things will be tight but ok til I can get another gig. Even if I don't get layed off, I will likely leave cause the job is causing anxiety and is soul sucking.....

I have reduced my 30 year fixed at 3.625 from $262k to $222k. I can get it down to $200k with cash on hand still having a cushion of a few months emergency fund. 

Doing the math, if I reduce to $200k at 15 years with an APR of 3, my payments only go up a couple hundred bucks which we are paying in extra anyway.  So I am thinking I need to refi right NOW while I still am employed (layoffs wouldn't be til 2016 first quarter).

If I can pay this sucker off, then I am fully FI..... Gonna do it no matter what!

Faraday

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Re: Facing Layoff but I am in Re: Mortgage Payoff Club!!
« Reply #560 on: October 29, 2015, 06:25:19 PM »
I may be facing a layoff, but luckily I have another income stream. If it happens, things will be tight but ok til I can get another gig. Even if I don't get layed off, I will likely leave cause the job is causing anxiety and is soul sucking.....

You must be employed in high-tech too. :-/

Quote
I have reduced my 30 year fixed at 3.625 from $262k to $222k. I can get it down to $200k with cash on hand still having a cushion of a few months emergency fund. 

Remarkable! I don't know where you are located, but in the Southeast US, you will have gone from "Jumbo" territory into "Normal loan" territory, so you might be able to get under 3% (depending on your FICO).

Quote
Doing the math, if I reduce to $200k at 15 years with an APR of 3, my payments only go up a couple hundred bucks which we are paying in extra anyway.  So I am thinking I need to refi right NOW while I still am employed (layoffs wouldn't be til 2016 first quarter).

Not a bad idea! Historically, lower interest rates are available Nov - January:
http://www.freddiemac.com/pmms/pmms30.htm
FIRE in 2020.

Bee21

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Re: Mortgage Payoff Club!!
« Reply #561 on: October 29, 2015, 08:27:41 PM »
 We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Faraday

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Re: Mortgage Payoff Club!!
« Reply #562 on: October 29, 2015, 11:20:17 PM »
We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Wow! Great to watch someone actually get there!
FIRE in 2020.

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #563 on: October 30, 2015, 10:11:41 AM »
We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Wow! Great to watch someone actually get there!

Agreed! I'm so excited for you :)

Also, I so hear you on the addictiveness of paying it off.

FerrumB5

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Re: Mortgage Payoff Club!!
« Reply #564 on: October 30, 2015, 10:26:52 AM »
My *first* mortgage bill is due Nov. 1st, 2015.
225k for 20 years at 3.625%

I calculated that if I throw extra $100 each month towards principal, I save ~10k in interest and 1yr11mo in length. Let's round to 2 years, so mortgage length is 18 years.
Now, if I start from $3k, buy VSMTX and add $100 each month to it, in same 18 years my interest (given average 7%/yr) is $29k.

Net gain is $19k in favor of investing vs mortgage extra payments. Does it make sense to go this way? Am I doing the right math or did I not take into account some factors?

Clean Shaven

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Re: Mortgage Payoff Club!!
« Reply #565 on: October 30, 2015, 11:34:26 AM »
My *first* mortgage bill is due Nov. 1st, 2015.
225k for 20 years at 3.625%

I calculated that if I throw extra $100 each month towards principal, I save ~10k in interest and 1yr11mo in length. Let's round to 2 years, so mortgage length is 18 years.
Now, if I start from $3k, buy VSMTX and add $100 each month to it, in same 18 years my interest (given average 7%/yr) is $29k.

Net gain is $19k in favor of investing vs mortgage extra payments. Does it make sense to go this way? Am I doing the right math or did I not take into account some factors?
1) Does that net $19k gain factor in the $3k initial Vanguard purchase?  (did you also apply a $3k first extra payment of principal to the mortgage?)

2) Mathematically, a 7% average return on investment achieves a better outcome than prepaying a 3.625% mortgage. Nobody disputes this. The gray area where all the debate lies is your own personal comfort with that leveraged investment, vs. a guaranteed return by prepayment.

Me, I'm prepaying like crazy on a 30-year 3.5% note, which I hope to have completely paid in January 2016. Did I lose $ over the last 3 years (the duration of the mortgage so far) by doing this, rather than investing? Absolutely. But the market could have gone the other way and crashed in 2013-2014.  I'm saving plenty in other investments too, so I'm comfortable with these choices.

FerrumB5

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Re: Mortgage Payoff Club!!
« Reply #566 on: October 30, 2015, 11:43:10 AM »
Clean Shaven - thanks! I indeed forgot to add 3k towards one time payment in calculations. The savings ar 12.6k then, so net difference is still substantial in case of direct investments.
Comfort zone? Not sure yet, as I haven't made payments yet :) I will surely refinance in the next few years - already 30 year mortgage rates are approaching my 3.625% 20 year (when I applied, 30 yr was 4.01+, now it's around 3.7).

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #567 on: October 31, 2015, 07:54:43 AM »
Paid off our home last month ;)

We spent 2 years looking for the perfect house, saving tons of money while occasionally submitted very low ball offers on a house we liked. We finally found the perfect house and they accepted an offer of $200,000, down from the asking price of $235k. Since we had been saving for 2 years I was able to put 50% plus closing costs down.

After we moved in we made a budget based on the least amount of money I could possible earn. Everything extra went into the house, including last years tax return and my retention bonus plus a few weeks of unexpected overtime work. I also put in 2 full paychecks since we receive 26 per year.

First payment on the $100,000 mortgage was on June 16th, 2014
Final payoff payment was on October 6th 2015


That's an awesome paydown rate!  Congrats!

I especially like it that you didn't "shop like a normal person" for your home.   Normal is defined as "Be in a hurry to buy.  Fall in love with a house and lose all sense of financial perspective.  Overpay.  Whine about it later."   :)

We've been looking for a new home for the last two years also.   While we were looking for rental properties we kept an eye out for ourselves.   When we found an interesting house we marked it down and kept an eye on it.   Most of them sold at a higher price than we were willing to pay.  The one we're buying in the next few weeks didn't.   We're getting our new house at 30% off the conservatively appraised value, at a price that really works for us. 

And because we remember how great it felt to pay the old mortgage off, our goal is to pay this house off faster than you did! :)

Due to circumstances we can take no credit for, that should require much less effort on our part than it did on yours.   But it will make us just as happy! :)

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #568 on: October 31, 2015, 08:00:49 AM »
We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Is this meeting necessary?  What do you need to talk about?  Honest question.

Rural

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Re: Mortgage Payoff Club!!
« Reply #569 on: October 31, 2015, 04:51:34 PM »
We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Is this meeting necessary?  What do you need to talk about?  Honest question.


 I wondered this myself. When we were ready to pay ours off, we just walked into the bank.

steveo

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Re: Mortgage Payoff Club!!
« Reply #570 on: October 31, 2015, 11:57:40 PM »
I have just under 100k owing at this point. I'd like to pay it off by the end of next year.

I now owe $13,800. It won't be paid off this year but it should be paid off early January.

We killed our mortgage about 5 years before I FIRE'd...really, that was the point at which it was "all systems go" to FI...and beyond.

I think that we are in this situation now. 5-6 years and then we will be FI.

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #571 on: November 01, 2015, 05:17:56 AM »

I do not know about them in particular. But I had a mixed mortgage HELOC from my bank and it gave me the added confidence that I could throw big chunks at the mortgage but still have access to a squishy emergency fund. Luckily, I never needed the HELOC, but I would highly recommend it.
[/quote]

@KIce,  THANKS!   For the suggestion about the HELOC as that is what we're going to do in case of God forbids...   I'm now waiting to hear back if our current lender will recast our first mortgage (doubtful as it's a 7 year ARM under market rate and instead they'd love to get our mortgage off their books AND sell us a new "full recourse" HELOC note at higher margins for them of course).   And the shopping continues with the most promising other lenders...

rjbf65

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Re: Mortgage Payoff Club!!
« Reply #572 on: November 03, 2015, 08:22:31 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.

Down to $49660.  Was able to throw an extra $1555 at it this time.  Budgeting to be able to throw an extra $2500 next month.

$46,950 -- a $2,710 reduction this month.  October should be a little better with the magic of the 3 paychecks for me this month.  Should be under $40K by end of the year.

$41,843 -- a $5,107 reduction this month.  The 3rd paycheck was big this time.  Would love to be able to do that every month!  My goal for end of November is to get under 40K.  Once I'm at the $40K mark, I'll have about equal amounts of cash in the bank and mortgage balance.  Still also maxing out 2 Roth IRA's which speaks for $917 per month.  It is always tempting to stop the Roth or to throw a bunch of the available cash at it.  I think I'll just stay the course of throwing all the extra cash that was left over after the month at it.  Once the mortgage is gone, all towards investing. 

BBub

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Re: Mortgage Payoff Club!!
« Reply #573 on: November 03, 2015, 09:36:26 AM »
Wow rjb you're kicking some ass.  I think the hard part would be holding $40k cash while eyeing the (40k) mortgage bal.  Especially as the spread widens & it becomes 42k vs (38), 45 vs (35) and so on..  Of course, that's assuming you have actual cash savings instead of securities or qualified holdings.  At some point I'd be tempted to simply wipe out the mortgage & still have $X cash on hand.

rjbf65

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Re: Mortgage Payoff Club!!
« Reply #574 on: November 03, 2015, 10:17:25 AM »
Wow rjb you're kicking some ass.  I think the hard part would be holding $40k cash while eyeing the (40k) mortgage bal.  Especially as the spread widens & it becomes 42k vs (38), 45 vs (35) and so on..  Of course, that's assuming you have actual cash savings instead of securities or qualified holdings.  At some point I'd be tempted to simply wipe out the mortgage & still have $X cash on hand.

It is actual cash in the bank.  It's a constant battle in my mind on what to do.  I've thought about throwing $20K at it now and keeping $20K in the bank.  Or wating till I have $20K balance left and $40K in the bank to knock it out.  Just looked and I should have another 3 check month in March of 2016.  Which is also about tax refund time.  Should really be able to put the hurt on the mortgage balance then. 

K-ice

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Re: Mortgage Payoff Club!!
« Reply #575 on: November 03, 2015, 01:56:46 PM »
It is actual cash in the bank. 

Since it is actual cash I would keep a small emergency fund and throw the extra at the mortgage. Your mortgage probably has a limit of what you can pre-pay. I would try to max that.

Now if it was invested, made some high savings interest within 1% of your mortgage interest, or you had a good investment plan for it, then you could slow down on the mortgage.

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #576 on: November 03, 2015, 03:59:00 PM »
Wow rjb you're kicking some ass.  I think the hard part would be holding $40k cash while eyeing the (40k) mortgage bal.  Especially as the spread widens & it becomes 42k vs (38), 45 vs (35) and so on..  Of course, that's assuming you have actual cash savings instead of securities or qualified holdings.  At some point I'd be tempted to simply wipe out the mortgage & still have $X cash on hand.

It is actual cash in the bank.  It's a constant battle in my mind on what to do.  I've thought about throwing $20K at it now and keeping $20K in the bank.  Or wating till I have $20K balance left and $40K in the bank to knock it out.  Just looked and I should have another 3 check month in March of 2016.  Which is also about tax refund time.  Should really be able to put the hurt on the mortgage balance then.

I am in almost the exact same boat as you.  I'm throwing 20k at the mortgage when the renaming principal gets to be near that amount.  With no mortgage I figure I my emergency fund doesn't need to be as large.  Inflation is eventually going to turn your savings to dust anyway.

BBub

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Re: Mortgage Payoff Club!!
« Reply #577 on: November 03, 2015, 04:39:28 PM »
Yeah the prudent move would be to decide on the minimum amount of cash you are comfortable keeping on hand & throw the rest at the mortgage.  If that's $20k, then throw the other 20 at the mortgage.

Now, personally.... I would probably wipe it out next month with the entire $40k then live on the edge for a few months with dangerously low cash levels.  But that's just one of my weaknesses.  I am impatient with financial goals & tend to freak out on them.  I haven't gotten serious yet about the mortgage payoff, but when I do it'll probably be an agonizing yet quick binge / sprint.  What can I say, I just like to rip the bandaid off.

NoraLenderbee

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Re: Mortgage Payoff Club!!
« Reply #578 on: November 04, 2015, 10:26:06 AM »
I want to pay off my mortgage. But I live in California. If I did that, the amount of capital tied up in my house would be equal to about 50% of my liquid net worth. It makes me nervous to have that much of my money in one single asset. I keep going back and forth. What to do? I would save about 900/month (P&I).

Neustache

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Re: Mortgage Payoff Club!!
« Reply #579 on: November 04, 2015, 12:58:21 PM »
NoraLenderbee - one option is to look into paying down a chunk and then recasting your mortgage for a small fee, if your lender will do that.  Recasting is when they take any extra principle paid, and then re-amortorize for the rest of the life of the loan, so you get a smaller monthly payment.  It's a nice middle ground - you get the benefit of lower payments and more cash flow and for people like you then you don't have to have a huge percentage of equity in one place. 

We are paying off our house, but we are in the Midwest and the equity in this house will be about 1/8 of our total net worth - I'm fine with that!

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #580 on: November 04, 2015, 06:18:29 PM »
+1 to what Neustache said about the recast.   Our bank (that is now the 3rd or 4th servicer of our 3 year old mortgage) has OK'd the recast for a $250 fee.   So that frees up significant cash flow and cuts our interest payment by more than half.   The bank wins by getting to loan our cash out 3 or more times with leverage and at a higher rate.   The FIRE plan and the mortgage beast will be done by 2021!

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #581 on: November 05, 2015, 02:28:33 PM »
38.2k.

33.2k.  Pretty ideal month, other than a $250 furnace repair.

Faraday

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Re: Mortgage Payoff Club!!
« Reply #582 on: November 05, 2015, 02:30:49 PM »
38.2k.

33.2k.  Pretty ideal month, other than a $250 furnace repair.

You Studly McStuderson, I envy.
Someday, I'll be there. I hope I can enjoy the obsession as much as you do.
FIRE in 2020.

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #583 on: November 05, 2015, 07:59:09 PM »
Yeah, obsession is a good description but it's a short term project. The light at the end of the tunnel is almost blinding.

NoraLenderbee

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Re: Mortgage Payoff Club!!
« Reply #584 on: November 05, 2015, 09:32:24 PM »
Thanks for the idea. We actually refi'd a few years ago, after paying down 50K, and we put another 50K on it this year. The problem is that I want to be mortgage-free *and* not have too much tied up in equity. #MustachianProblems

Imonaboat

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Re: Mortgage Payoff Club!!
« Reply #585 on: November 06, 2015, 05:55:23 AM »
I dug deep into my emergency fund to pay off my house, dropping my normal 10k down to around 700. Now I'm fiddling my thumbs for a few months until it builds up when I really want to open my investment account. If I could do it again I would have let the last few months ride out while I saved for the next goal heh.
« Last Edit: November 06, 2015, 05:57:15 AM by Imonaboat »

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #586 on: November 06, 2015, 07:34:47 AM »
I dug deep into my emergency fund to pay off my house, dropping my normal 10k down to around 700. Now I'm fiddling my thumbs for a few months until it builds up when I really want to open my investment account. If I could do it again I would have let the last few months ride out while I saved for the next goal heh.

Geez, makes me feel a little better about taking just 2/5 of my savings.

asauer

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Re: Mortgage Payoff Club!!
« Reply #587 on: November 10, 2015, 06:09:49 AM »
Threw another chunk of $ at the mortgage this month!  Down to 100,800- hopefully I scrounge/ hustle the other 801 and be under 100k by the end of this month!

Imonaboat

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Re: Mortgage Payoff Club!!
« Reply #588 on: November 10, 2015, 08:17:59 AM »
Threw another chunk of $ at the mortgage this month!  Down to 100,800- hopefully I scrounge/ hustle the other 801 and be under 100k by the end of this month!

Keep it up! Before long it will be similar to a non-mustacian car note!

Faraday

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Re: Mortgage Payoff Club!!
« Reply #589 on: November 10, 2015, 12:45:57 PM »
Threw another chunk of $ at the mortgage this month!  Down to 100,800- hopefully I scrounge/ hustle the other 801 and be under 100k by the end of this month!

Hit it and git it!

I'm aiming to get under $100k in January 2016. Still on target, but it's gonna be close....
FIRE in 2020.

flowrider

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Re: Mortgage Payoff Club!!
« Reply #590 on: November 10, 2015, 01:17:50 PM »
We recently sold our house privately and bought in a slightly "less desirable" area about 1km away. This allowed us to carve $90k off the mortgage and we will now be paid off in 2 years instead of 10 years. We also now have a nicer yard for the kids and we are not positioned on a busy main road - bonus! Looking forward to being mortgage free!
Keep up the good work folks

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #591 on: November 10, 2015, 07:34:38 PM »
The deed is done on the mortgage recast to drop the mortgage under $110K!   This was from a chunk inherited from what was left from sale of my Dad's house so somewhere he's hopefully smiling.    After analysis paralysis on this for months, a feeling of awesome Jean-Luc-Picard-esque calm has been with me all afternoon...

Faraday

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Re: Mortgage Payoff Club!!
« Reply #592 on: November 10, 2015, 07:36:22 PM »
The deed is done on the mortgage recast to drop the mortgage under $110K!   This was from a chunk inherited from what was left from sale of my Dad's house so somewhere he's hopefully smiling.    After analysis paralysis on this for months, a feeling of awesome Jean-Luc-Picard-esque calm has been with me all afternoon...

Komputah! Tea, Earl Gray, Hot!
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FIRE in 2020.

Neustache

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Re: Mortgage Payoff Club!!
« Reply #593 on: November 11, 2015, 05:50:36 AM »
The deed is done on the mortgage recast to drop the mortgage under $110K!   This was from a chunk inherited from what was left from sale of my Dad's house so somewhere he's hopefully smiling.    After analysis paralysis on this for months, a feeling of awesome Jean-Luc-Picard-esque calm has been with me all afternoon...

Sweet!!  Now you make me want to save a chunk and put it towards a recast!  Ha!  Our minimum is 10K but to make it feel more worthwhile I'd want to pay down about 30K to make our PITI payments under $700.  I really think recasts are a nice middle ground for people wanting to pay off the mortgage so that they can then benefit from the extra cashflow.  Shoot, once our mortgage is under $700 a month I may not pay it off early just because that amount is really easy to come up with plus our other monthly expenses even on a full-time job I could get (about 30K a year)

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #594 on: November 11, 2015, 05:23:04 PM »
Neustache (and all),  Just do it to the point it makes sense for your situation.   It all depends on the lender about the recast and whether your rate is above or below current market.   We did it with a new "servicer" that is obviously looking for ways to drum up business or cash in on the below market rate loans they bought.    In this case, it was PNC Mortgage and they are quite willing and easy to work with.    They were also quite eager to sell me a HELOC that requires a minimum draw hoping we'll borrow the money back at a higher rate for home improvements or toy purchases.   Good luck with that!  ;-)

Faraday, Very good!   Now if you'll excuse me, I'll be in my Ready Room!

Faraday

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Re: Mortgage Payoff Club!!
« Reply #595 on: November 11, 2015, 07:18:43 PM »
Faraday, Very good!   Now if you'll excuse me, I'll be in my Ready Room!

FIRE in 2020.

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #596 on: November 12, 2015, 03:11:52 PM »
Niiiiice!

plainjane

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Re: Mortgage Payoff Club!!
« Reply #597 on: November 17, 2015, 06:45:32 AM »
The SO has always looked at my desire to pay off the mortgage as a personality quirk.  Where my parents paid off the mortgage soon after I was born, I think the other side only finished paying off their mortgage in the past 5 years or so.

Until last night, when they logged into that account (which they do on at least a monthly basis to populate the NW sheet), and realized that every sub-account has more money in it than is owing on the mortgage.  Our taxes+efund is higher, our travel fund is higher (we have a big trip planned for the spring), and obviously the retirement account is higher.  The conversation was a bit giddy.

It feels like we're now on the same page as to the possibilities, and I'm not just being humoured.  (I'm not deluding myself, there still won't be any traction on dumping cable.)
Using procrastination to my advantage since 2001.

CM*TO Is a thing!! We're accepting names for the waitlist!!

Faraday

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Re: Mortgage Payoff Club!!
« Reply #598 on: November 17, 2015, 10:56:10 AM »
The SO has always looked at my desire to pay off the mortgage as a personality quirk.  Where my parents paid off the mortgage soon after I was born, I think the other side only finished paying off their mortgage in the past 5 years or so.

Until last night, when they logged into that account (which they do on at least a monthly basis to populate the NW sheet), and realized that every sub-account has more money in it than is owing on the mortgage.  Our taxes+efund is higher, our travel fund is higher (we have a big trip planned for the spring), and obviously the retirement account is higher.  The conversation was a bit giddy.

It feels like we're now on the same page as to the possibilities, and I'm not just being humoured.  (I'm not deluding myself, there still won't be any traction on dumping cable.)

Now that's a great story! One helluva good "personality quirk" you have there!

Sorry about not being able to get rid of cable, though. Sucks, bad. When we got rid of it over 10 years ago, that $130/month made a HUGE impact!

FIRE in 2020.

Bee21

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Re: Mortgage Payoff Club!!
« Reply #599 on: November 18, 2015, 06:56:59 PM »
Under 3k people! 2 more payments to go.