Author Topic: Mortgage Payoff Club!! (Read 1130911 times)

Clean Shaven · « **Reply #650 on:** January 07, 2016, 07:22:31 AM »

Thanks! I posted about it because I feel like telling someone, and anonymous Internet forum members seems to be about the only people my wife and I can tell.

Seems like it shouldn't be this way, but telling coworkers "I'm happy, we paid off this huge debt in a few short years by carefully saving and not wasting money" wouldn't go over well. OTOH, "hey check out my new $50k car, payments are only $600/mo for the next 5 years" would go over just fine. Spendy pants logic, I guess.

asauer · « **Reply #651 on:** January 07, 2016, 07:36:33 AM »

Quote from: steveo on January 06, 2016, 01:44:48 PM

My mortgage is now done. All I have to do is close the account down. I have $10 credit. Freaken great.

Wonderful news!!! Congratulations!

freeatlast · « **Reply #652 on:** January 07, 2016, 10:34:38 AM »

I need an incentive to stay in a job that is wearing on me, so I have chosen to pay down the mortgage even though I have a favorable rate of 3.625% on a 30 year. I know the debate on this.... but I need a goal and there are worse things I could do with the money :)

I live in a high cost of living area so my house even in the "bad" part of town had a starting mortgage of 262k. I got that down to $200k as of Jan. 1 (3 1/2 years). Now I am getting serious. So I made a chart that takes me from $200,000 to $100,000 in 2016 and I mark on it every time I make a payment. Down to $197k! This chart is in my home office and it is a reminder of why I am doing what I am doing! This is a lofty goal and I am not sure I can make it. I may sell some useless stuff I don't use to try to get there....

Love this thread - good luck to everyone and happy 2016!

Debts_of_Despair · « **Reply #653 on:** January 07, 2016, 11:41:27 AM »

Quote from: Clean Shaven on January 07, 2016, 07:22:31 AM

Thanks! I posted about it because I feel like telling someone, and anonymous Internet forum members seems to be about the only people my wife and I can tell.

Seems like it shouldn't be this way, but telling coworkers "I'm happy, we paid off this huge debt in a few short years by carefully saving and not wasting money" wouldn't go over well. OTOH, "hey check out my new $50k car, payments are only $600/mo for the next 5 years" would go over just fine. Spendy pants logic, I guess.

You really are best keeping it to yourself. It only serves to make most people feel bad/dumb. There are only a very few like minded people who I told.

Scubanewbie · « **Reply #654 on:** January 07, 2016, 03:14:58 PM »

Quote from: freeatlast on January 07, 2016, 10:34:38 AM

I need an incentive to stay in a job that is wearing on me, so I have chosen to pay down the mortgage even though I have a favorable rate of 3.625% on a 30 year. I know the debate on this.... but I need a goal and there are worse things I could do with the money :)

I live in a high cost of living area so my house even in the "bad" part of town had a starting mortgage of 262k. I got that down to $200k as of Jan. 1 (3 1/2 years). Now I am getting serious. So I made a chart that takes me from $200,000 to $100,000 in 2016 and I mark on it every time I make a payment. Down to $197k! This chart is in my home office and it is a reminder of why I am doing what I am doing! This is a lofty goal and I am not sure I can make it. I may sell some useless stuff I don't use to try to get there....

Love this thread - good luck to everyone and happy 2016!

Great goal! I agree that the things that motivate us are the best to work on. $100K in one year, wow, you're my hero! :) Not to be a downer but I'm assuming you're planning to do *some* retirement investing simultaneously? Enough to get to match? Enough to max out tax advantaged accounts? With that kind of income the risk of waiting too long can be pretty serious.

We're taking a longer term goal, I'd love to be done in 5 years. But I'm in awe of those with super-short timeframes, it's so exciting and I'd be happy to cheer you on!

steveo · « **Reply #655 on:** January 07, 2016, 11:13:07 PM »

My payout went smoothly but it was interesting. Firstly the money was rejected because it was pushing my account into credit. I rang up and they said write a letter to close the account because there is a massive amount in redraw. I transferred the money back into the home loan and paid it to 0 to avoid any interest. I checked it today and that payment had been rejected. I called up today and said I wanted to close it and they just closed it.

It was sweet.

Bee21 · « **Reply #656 on:** January 08, 2016, 03:54:57 AM »

Congrats.

Just wondering, what is happening with the property deeds in your side of the woods? How do you remove the bank from it? It is complicated/expensive over there?

We paid off the damn thing but the final paperwork is not organized because the lovely husband does not feel like dealing with lawyers and paperwork right now. I know, no comments on this one.

Neustache · « **Reply #657 on:** January 08, 2016, 05:40:06 AM »

@Bee21
I used to work at a title company, and the Deed of Release would be recorded at the courthouse when a mortgage was satisfied. Sometimes the owner of the property would receive it and need to file it (for a small fee) but sometimes the bank would send it directly to the courthouse to be filed and the owner would received it afterwards with the recording information stamped on it.

At least in our world, (mid-US) attorneys don't factor into it at all.

Bee21 · « **Reply #658 on:** January 08, 2016, 01:14:16 PM »

Thanks for that. We are in Australia, and the husband allegedly did his research on this. I am just kicking myself for not going with him to the bank when he closed the account as we could have organized it there and then. I will pop in the bank in my lunchtime next week and collect the necessary paperwork, lawyer up if necessary and drag him along. The little darling needs a bit of a push on financial matters unfortunately. He always admits that I was right afterwards :) like this house payoff thing. 3 years ago he said I was delusional.

steveo · « **Reply #659 on:** January 08, 2016, 02:14:14 PM »

Quote from: Bee21 on January 08, 2016, 01:14:16 PM

Thanks for that. We are in Australia, and the husband allegedly did his research on this. I am just kicking myself for not going with him to the bank when he closed the account as we could have organized it there and then. I will pop in the bank in my lunchtime next week and collect the necessary paperwork, lawyer up if necessary and drag him along. The little darling needs a bit of a push on financial matters unfortunately. He always admits that I was right afterwards :) like this house payoff thing. 3 years ago he said I was delusional.

Bee - I am Australian. I didn't discharge the mortgage as we have a line of credit with 50k. We don't owe anything on that and intend to use it as an emergency fund if it is required.

It should be really easy though to discharge the mortgage. The bank I am with thought that was what we wanted and sent us a form. I expect that is all you have to do. There will probably be a small fee.

Money Badger · « **Reply #660 on:** January 10, 2016, 08:59:49 AM »

Bee21, Of course, you'll make the trip to the bank "his" idea and praise him like your first born taking his first steps right? :)

freeatlast · « **Reply #661 on:** January 13, 2016, 12:56:50 AM »

Quote from: Scubanewbie on January 07, 2016, 03:14:58 PM

Quote from: freeatlast on January 07, 2016, 10:34:38 AM
I need an incentive to stay in a job that is wearing on me, so I have chosen to pay down the mortgage even though I have a favorable rate of 3.625% on a 30 year. I know the debate on this.... but I need a goal and there are worse things I could do with the money :)

I live in a high cost of living area so my house even in the "bad" part of town had a starting mortgage of 262k. I got that down to $200k as of Jan. 1 (3 1/2 years). Now I am getting serious. So I made a chart that takes me from $200,000 to $100,000 in 2016 and I mark on it every time I make a payment. Down to $197k! This chart is in my home office and it is a reminder of why I am doing what I am doing! This is a lofty goal and I am not sure I can make it. I may sell some useless stuff I don't use to try to get there....

Love this thread - good luck to everyone and happy 2016!

Great goal! I agree that the things that motivate us are the best to work on. $100K in one year, wow, you're my hero! :) Not to be a downer but I'm assuming you're planning to do *some* retirement investing simultaneously? Enough to get to match? Enough to max out tax advantaged accounts? With that kind of income the risk of waiting too long can be pretty serious.

We're taking a longer term goal, I'd love to be done in 5 years. But I'm in awe of those with super-short timeframes, it's so exciting and I'd be happy to cheer you on!

Thanks Scub! I read your post and you are kicking it too! I'll be down to $194k by end of January. My goal may be aggressive but I am going to see how well I can do. I am older than you (47) and I feel like I am buying freedom on behalf of my older self. I don't want to be paying the mortgage when I am 70 - which would have happened if I did not repay early. I am investing enough in the 401(k) to cover the match, but I never seem to do well in the market...

Bee21 · « **Reply #662 on:** January 13, 2016, 02:27:10 AM »

Thanks for the replies guys. Anyone has any idea how much does storing the deeds cost? Lawyers/banks/safe?

I am really keen having it discharged, as he is now researching yachts :D

I definitely don't want a line of credit.

birdman2003 · « **Reply #663 on:** January 13, 2016, 12:16:45 PM »

You should be able to rent a safety deposit box at a bank for $50 a year.

dogboyslim · « **Reply #664 on:** January 13, 2016, 12:39:52 PM »

Happy to find this thread. I know that strictly from a return perspective I'm better off investing than paying off the mortgage, but the reduction in required cash flow is very appealing to me, and knowing I have no debt at all other than revolving accounts that are paid off each month is an emotional gain for both my wife and I. We moved a few years ago, so our original mortgage was 280k. We put down the min on our house until we sold our prior home. Once that house sold, we kept the money under the invest it philosophy, but both my wife and I were thinking we should just pay it down. Last December we refinanced to a 10 year fixed HELOC at $99k using the proceeds from the prior home sale. In 2015 we decided that the two of us didn't need 3 cars, so we sold our newest car and put another 25k into the mortgage. Right now we sit at ~~$34k~~ $32k. I ended up overwitholding my taxes last year after messing up the prior year due to the move, so we expect to have about $10k in state/federal refund, and we are paying down about $2k per month. My office did well last year so I'm hoping for a bit of a discretionary bonus (they have done it in other years). If that happens, we could be mortgage free by May. Otherwise, December 2016 will be our last payment.

Edit: down to $32k after January pmt

Money Badger · « **Reply #665 on:** January 13, 2016, 06:12:28 PM »

@dogboyslim, Great progress and very creative! The margin of safety every month of your life from having a paid off home and the sense of "completion" brings a sense of confidence every day that's hard to describe...

We're actually rolling coins, selling junk we never use otherwise and putting every bit of spare cash towards ours (after putting money towards some maintenance and education expenses we'd otherwise have to borrow to cover). So will scratch together almost another 1% extra principal payment this month on our $109K balance this month despite my plan to hold off on mortgage pay downs for a bit.

So beware, once you start, it will consume your destiny until it's complete (especially the closer you get)... and that's a good thing!

steveo · « **Reply #666 on:** January 13, 2016, 07:03:08 PM »

Quote from: Bee21 on January 13, 2016, 02:27:10 AM

Thanks for the replies guys. Anyone has any idea how much does storing the deeds cost? Lawyers/banks/safe?

I am really keen having it discharged, as he is now researching yachts :D

I definitely don't want a line of credit.

Why not just store it at home. Its just some papers.

Debts_of_Despair · « **Reply #667 on:** January 16, 2016, 10:02:46 AM »

It's officially official now for me. The discharge showed up on the county clerk's website and the bank was removed as a lien holder on my insurance. About a month long process from the time the final payment was made.

RNwastash · « **Reply #668 on:** January 16, 2016, 02:46:54 PM »

$119,872 to date. I so want to pay off my mortgage so I can go down to part time status. Great job everyone and a wonderful, closer to debt-free year to all of you :)

serious_pete · « **Reply #669 on:** January 19, 2016, 09:52:43 AM »

Quote from: serious_pete on November 20, 2014, 12:56:10 PM

Quote from: serious_pete on April 17, 2014, 12:25:30 PM
I'm in! £122,000 left to go on a £128,000 mortgage. Interest rate set at 4.99% So far made a grand total of £1000 overpayments so got quite a way to go. The plan is to overpay by £500 per month to start with and change mortgage deal in December.

Now down to £116,500 and interest rate is now down to 3.09% as of January. Still working on 500 overpay per month. Slow but steady!

As of right now mortgage is at £105, 082.

BBub · « **Reply #670 on:** January 19, 2016, 11:15:11 AM »

Quote from: Debts_of_Despair on January 16, 2016, 10:02:46 AM

It's officially official now for me. The discharge showed up on the county clerk's website and the bank was removed as a lien holder on my insurance. About a month long process from the time the final payment was made.

That's awesome DoD. How does it feel - Relief, excitement, happiness, calmness? Does the feeling of being debt free live up to your expectations, or did it just kind of feel like another milestone?

mustangchik83 · « **Reply #671 on:** January 19, 2016, 11:45:11 AM »

I've been following MMM for a few years now, but haven't been active in the forum. However, last week my husband and I finally sold off a previous house that had become a no-better-than-break-even rental during a bad housing market. The proceeds from that sale, plus a little extra bonus money will pay off our current home later this week. We are giddy with excitement at the prospect of being debt-free at 32, but unfortunately, most of our family and friends are busy living typical American lives and wouldn't be thrilled to hear our news. So, I came here to celebrate quietly with like-minded people. :)

To all those still striving to get to zero - keep up the good work!

Debts_of_Despair · « **Reply #672 on:** January 19, 2016, 02:55:38 PM »

Quote from: BBub on January 19, 2016, 11:15:11 AM

Quote from: Debts_of_Despair on January 16, 2016, 10:02:46 AM
It's officially official now for me. The discharge showed up on the county clerk's website and the bank was removed as a lien holder on my insurance. About a month long process from the time the final payment was made.

That's awesome DoD. How does it feel - Relief, excitement, happiness, calmness? Does the feeling of being debt free live up to your expectations, or did it just kind of feel like another milestone?

To be completely honest, pretty lackluster. All the money that would've previously went to the mortgage will go a 457b so it's not like there is any kind of windfall. I guess the only immediate benefit is knowing that if some kind of catastrophe strikes, the house is mine no matter what. That does bring some peace on a daily basis.

steveo · « **Reply #673 on:** January 19, 2016, 11:50:24 PM »

Quote from: Debts_of_Despair on January 19, 2016, 02:55:38 PM

Quote from: BBub on January 19, 2016, 11:15:11 AM
Quote from: Debts_of_Despair on January 16, 2016, 10:02:46 AM
It's officially official now for me. The discharge showed up on the county clerk's website and the bank was removed as a lien holder on my insurance. About a month long process from the time the final payment was made.

That's awesome DoD. How does it feel - Relief, excitement, happiness, calmness? Does the feeling of being debt free live up to your expectations, or did it just kind of feel like another milestone?

I feel the same way. Now I'm starting to save more to reach FI.

To be completely honest, pretty lackluster. All the money that would've previously went to the mortgage will go a 457b so it's not like there is any kind of windfall. I guess the only immediate benefit is knowing that if some kind of catastrophe strikes, the house is mine no matter what. That does bring some peace on a daily basis.

bzzzt · « **Reply #674 on:** January 20, 2016, 08:38:00 PM »

Quote from: Debts_of_Despair on January 19, 2016, 02:55:38 PM

I guess the only immediate benefit is knowing that if some kind of catastrophe strikes, the house is mine no matter what. That does bring some peace on a daily basis.

Agreed. It also gives me the ability to look at the market on down days and not feel total despair.

Indexes down 2% today? IDGAF. Burn baby burn! Daddy wants to buy low! ;)

Debts_of_Despair · « **Reply #675 on:** January 21, 2016, 08:06:08 AM »

Quote from: bzzzt [/quote

Agreed. It also gives me the ability to look at the market on down days and not feel total despair.

Indexes down 2% today? IDGAF. Burn baby burn! Daddy wants to buy low! ;)

Oh yeah! I'm not one to time the markets but it feels pretty damn good to have poured all my money into the house when markets were peaking and now shift my focus to investing while prices are going down.

YoungGranny · « **Reply #676 on:** January 22, 2016, 08:11:40 AM »

Quote from: YoungGranny on November 19, 2015, 06:35:19 AM

Quote from: YoungGranny 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.

Sent a chunk of money at it again this month, down to $129,532

Haven't updated in a bit... balance is sitting at $120,485 - I'm taking a blended approach to paying off the mortgage while still investing. Feels good to have one number moving in the right direction since my investments are not doing so hot this month. Extra large payment on the mortgage this month since it was bonus time.....if only I could do that every month haha.

Mermaid3011 · « **Reply #677 on:** January 22, 2016, 05:45:25 PM »

Quote from: Debts_of_Despair on January 16, 2016, 10:02:46 AM

It's officially official now for me. The discharge showed up on the county clerk's website and the bank was removed as a lien holder on my insurance. About a month long process from the time the final payment was made.

Congratulations!!! What a wonderful success to celebrate!

Money Badger · « **Reply #678 on:** January 22, 2016, 08:14:12 PM »

This sounds sad at first, then you have to embrace the mindset... I've saved $125 in coins since Thanksgiving to go towards the mortgage. That's 1% to my freedom!!!!

Mermaid3011 · « **Reply #679 on:** January 23, 2016, 11:28:51 AM »

Quote from: indentured4now on January 22, 2016, 08:14:12 PM

This sounds sad at first, then you have to embrace the mindset... I've saved $125 in coins since Thanksgiving to go towards the mortgage. That's 1% to my freedom!!!!

That's awesome! Not sad at all! I've been thinking of going to the bank today as well and putting my change from the big cookie jar towards my mortgage!

Heckler · « **Reply #680 on:** January 24, 2016, 09:43:32 AM »

Quote

I've been footin' the bill for some time
Stretchin' my credit out of line
Well I may not get ahead but now I won't be far behind
I've got one more payment and it's mine, we're gonna swing it

Ain't that the way the heart goes
Seems they just attack without a sign
My mind's been on vacation
And my body's been workin' overtime
But I've done all that I can do
There's just one more balance due before it's mine

I've been footin' the bill for some time
Step by step and line by dotted line
Well I haven't bought the farm yet but I'm not that far behind
I've got one more payment and it's mine

One more payment and it's mine
One more payment and it's mine
One more, one more, one more, Lord

Read more: Clint Black - One More Payment Lyrics | MetroLyrics

In 2003, we bought our place in North Vancouver, BC. Paid $275,000 for a three bed townhouse with enough space to store all our shit. Mortgaged about $255,000 for a twenty year amortization.

I knew nothing about money, interest, or savings rate other than I put 5 % away into my employer matched RSP, and spent the rest. Luckily my lovely wife increased the mortgage payments any chance she could. Payed biweekly, increasing over the years, plus bonuses went onto the mortgage. Figure we could sell it for $580,000+ now! but the best part, only 13 years later is...

ONE MORE PAYMENT AND ITS OURS!

Mermaid3011 · « **Reply #681 on:** January 24, 2016, 09:50:35 AM »

Quote from: Heckler on January 24, 2016, 09:43:32 AM

Quote
I've been footin' the bill for some time
Stretchin' my credit out of line
Well I may not get ahead but now I won't be far behind
I've got one more payment and it's mine, we're gonna swing it

Ain't that the way the heart goes
Seems they just attack without a sign
My mind's been on vacation
And my body's been workin' overtime
But I've done all that I can do
There's just one more balance due before it's mine

I've been footin' the bill for some time
Step by step and line by dotted line
Well I haven't bought the farm yet but I'm not that far behind
I've got one more payment and it's mine

One more payment and it's mine
One more payment and it's mine
One more, one more, one more, Lord

Read more: Clint Black - One More Payment Lyrics | MetroLyrics

In 2003, we bought our place in North Vancouver, BC. Paid $275,000 for a three bed townhouse with enough space to store all our shit. Mortgaged about $255,000 for a twenty year amortization.

I knew nothing about money, interest, or savings rate other than I put 5 % away into my employer matched RSP, and spent the rest. Luckily my lovely wife increased the mortgage payments any chance she could. Payed biweekly, increasing over the years, plus bonuses went onto the mortgage. Figure we could sell it for $580,000+ now! but the best part, only 13 years later is...

ONE MORE PAYMENT AND ITS OURS!

Congratulations!! That's fabulous! and what a great area you picked!!
i just started 1.5 yrs ago with a 260k mortgage. My plan is to be done in 11 yrs, so pretty much same timeline as yours. Can't wait! :)
Again: well done and happy FIRE

rjbf65 · « **Reply #682 on:** February 02, 2016, 07:13:18 AM »

Quote from: rjbf65 on January 05, 2016, 12:54:59 PM

Quote from: rjbf65 on December 02, 2015, 08:51:39 AM
Quote from: rjbf65 on November 03, 2015, 08:22:31 AM
Quote from: rjbf65 on October 07, 2015, 11:21:55 AM
Quote from: rjbf65 on September 04, 2015, 06:53:00 AM
Quote from: rjbf65 on August 06, 2015, 11:31:21 AM
Quote from: rjbf65 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.

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.

$38,922 -- $2,921 reduction this month. More travel and eating out this month, as well as property taxes and insurance slowed us down a bit. But we are at the goal of being under $40K balance! It's going down at a pretty good pace that I'm happy with! We will have some Christmas expenses coming up this month but it shouldn't be all that bad. My target is to hope to be under $37K at the end of December.

$35,898 -- $3,024 reduction this month. Received a small bonus from work to more or less cancel out Christmas spending. Also had to replace the wife's windshield. Would love to be down to under $33K after January is up. Have quite a few things on the horizon. We are expecting our first child in late May. With that we are planning on upgrading the vehicle fleet some. While going from 3 vehicles to 2. Just looking for more room and reliability. Need to have the ability of hauling a child, 2 dogs, and luggage for trips to see our parents. We have been on the mustachian side of things when it comes to vehicles. Our 3 vehicles combined might be worth about 9 or 10K. My goal is to have a paid for house as well as having atleast 1 newer vehicle also paid for by the time the baby arrives. We are now at the position of having more cash than mortgage balance. Really looking forward to knocking it out asap! Another thing about having it paid off by the end of May is I'll finally be eligible to contribute to my 401K starting in July. Would be wonderful to max out a 401K in just the remaining half of the year!

$32,026 -- a $3,872 reduction this month. I always have to wait until the 5th or 6th of each month to process my extra payment. I'm one of those weird ones that pay things as soon as I get the notice instead of holding on to the money for as long as possible. If all goes well February and March have the potential to be good debt reduction months. Tax refund in February hopefully and a 3 paycheck month in March. We will be doing some vehicle upgrading with a new baby on the way but I will do everything I can to keep that cost to a minimum.

Mermaid3011 · « **Reply #683 on:** February 03, 2016, 09:48:25 AM »

Here are my stats

Condo (downtown Toronto) bought for $308,000 in July 2014
(value around 340k now after complete renovation)
started out w mortgage: $240k
as of Feb 1, 2016 - 205k

goal for 2016 - 198k
goal for 2017 - 180k
goal for 2018 - 162k
goal for 2019 - 142k
goal for 2020 - 118k
goal for 2021 - 95k
goal for 2022 - 70k
goal for 2023 - 43k
goal for 2024 - 11k
last payment hopefully in March 2025

That's a very long 9 yrs to go... sigh.

HenryDavid · « **Reply #684 on:** February 03, 2016, 10:03:39 AM »

$3600 to go, six more biweekly payments, done in April.

Originally a 25 year mortgage, paid in 14 years, and we even took a few brief payment holidays while travelling . . .
and added a new roof and a coupla renos along the way. While earning around the median income for our town at the start, 30% above now. In other words, no magically gigantic cash flow.

Thank you low floating interest rates and amped-up payments. (And initial moderate price of course.)

Faraday · « **Reply #685 on:** February 03, 2016, 08:35:50 PM »

Another Mortgage Paydown Fan checking in. We broke $100k on the mortgage principal owed. Today it's $98,519.67.

Info: The mortgage company said they will do ONE "recasting" of the loan over the lifetime of the loan for $300. It's a bargain compared to refi, for someone who's planning to pay down the mortgage principal anyway.

http://www.moneycrashers.com/recasting-mortgage-loan/

plainjane · « **Reply #686 on:** February 04, 2016, 06:37:51 AM »

Quote from: Mermaid3011 on February 03, 2016, 09:48:25 AM

goal for 2024 - 11k
last payment hopefully in March 2025
That's a very long 9 yrs to go... sigh.

By the time you're under 40k, you'll be finding $100 here and there, and you can choose whether to snowball against the mortgage or put against FI. It can go so much faster than you think.

We just finished in 9.5 years. It is Schrodinger's mortgage no more. The money is out of the chequing account and the mortgage no longer slows up when I log into the other bank. I suppose it doesn't _really_ count until we get the discharge papers, but I'm going to put a checkmark there now as complete.

Today we're celebrating (also, a birthday) by getting takeout pizza.

Debts_of_Despair · « **Reply #687 on:** February 04, 2016, 10:08:56 AM »

Quote from: plainjane on February 04, 2016, 06:37:51 AM

Quote from: Mermaid3011 on February 03, 2016, 09:48:25 AM
goal for 2024 - 11k
last payment hopefully in March 2025
That's a very long 9 yrs to go... sigh.

By the time you're under 40k, you'll be finding $100 here and there, and you can choose whether to snowball against the mortgage or put against FI. It can go so much faster than you think.

We just finished in 9.5 years. It is Schrodinger's mortgage no more. The money is out of the chequing account and the mortgage no longer slows up when I log into the other bank. I suppose it doesn't _really_ count until we get the discharge papers, but I'm going to put a checkmark there now as complete.

Today we're celebrating (also, a birthday) by getting takeout pizza.

I felt like 40k is the point where you can really start putting a hurtin on your mortgage. Interest is almost not a factor and all the little sums of money you can throw at it really start to add up.

Faraday · « **Reply #688 on:** February 04, 2016, 06:50:44 PM »

Quote from: Debts_of_Despair on February 04, 2016, 10:08:56 AM

Quote from: plainjane on February 04, 2016, 06:37:51 AM
Quote from: Mermaid3011 on February 03, 2016, 09:48:25 AM
goal for 2024 - 11k
last payment hopefully in March 2025
That's a very long 9 yrs to go... sigh.

By the time you're under 40k, you'll be finding $100 here and there, and you can choose whether to snowball against the mortgage or put against FI. It can go so much faster than you think.

We just finished in 9.5 years. It is Schrodinger's mortgage no more. The money is out of the chequing account and the mortgage no longer slows up when I log into the other bank. I suppose it doesn't _really_ count until we get the discharge papers, but I'm going to put a checkmark there now as complete.

Today we're celebrating (also, a birthday) by getting takeout pizza.

I felt like 40k is the point where you can really start putting a hurtin on your mortgage. Interest is almost not a factor and all the little sums of money you can throw at it really start to add up.

You get at least halfway down the curve and every payment is a very high percentage of mortgage abatement, so each payment makes an ever-more-visible dent in the remaining principal.

We're only halfway through our principal but we've gone from seeing each monthly payment go from 47% principal to currently 82% principal. (exclusive of insurance and escrow, which are constants and independent of the loan). So now, every single mortgage payment makes a bigger and bigger difference to cutting the principal.

Mermaid3011 · « **Reply #689 on:** February 05, 2016, 07:34:27 AM »

Quote from: plainjane on February 04, 2016, 06:37:51 AM

Quote from: Mermaid3011 on February 03, 2016, 09:48:25 AM
goal for 2024 - 11k
last payment hopefully in March 2025
That's a very long 9 yrs to go... sigh.

By the time you're under 40k, you'll be finding $100 here and there, and you can choose whether to snowball against the mortgage or put against FI. It can go so much faster than you think.

We just finished in 9.5 years. It is Schrodinger's mortgage no more. The money is out of the chequing account and the mortgage no longer slows up when I log into the other bank. I suppose it doesn't _really_ count until we get the discharge papers, but I'm going to put a checkmark there now as complete.

Today we're celebrating (also, a birthday) by getting takeout pizza.

Thanks for the encouragement! Yes! I'll throw everything possible against it to get rid of it sooner.

CONGRATULATIONS to you both! And happy birthday! What a WONDERFUL success and accomplishment!
You should be very very proud of yourself!

Mermaid3011 · « **Reply #690 on:** February 05, 2016, 07:42:46 AM »

Thank you Faraday and Debts_of_Despair!

It sure is fabulous to look at the amortization spreadsheet and see how quickly it goes down once I am raising my monthly mortgage payments. This year is still debt payback, but next year my monthly mortgage payments will go up from $1120 to $1800. That'll make a big difference in getting the principal down.

My next refinancing is due mid 2019, so in 3 yrs 5 months. I wonder where interest will be then. right now I am calculating with 6% (instead of 2.99% right now).

Do you think that is a decent assumption? Mortgage rates around 6% in 2019?

Considering the current low interest environment I can't really see interest rates going up more than 1% per year...

Heckler · « **Reply #691 on:** February 05, 2016, 09:50:08 AM »

Today is (better be!) the day!

I'm staring at the checking account, waiting for that final payment to come out. Haven't heard a word from Mortco. about The End, but my calculations in relation to the balance 6 weeks ago says this final payment will be $200 less than normal.

Then I have to crack the bottle of Muscato DAsti and drink it all myself, because on Monday my infertile wife of 20 years was told she shouldn't drink alcohol for at least the next three months! It's been an exciting and confusing week!

Thank goodness for the three bedrooms! Our friend who is a real estate developer suggested we buy the larger fixer upper instead of the smaller well decorated unit for the same price. You can repaint, but it's impossible to add sqft. to a strata. Now... Which room has to go, the craft/sewing room or the spare bedroom for visitors from Ontario?

Mermaid3011 · « **Reply #692 on:** February 05, 2016, 11:17:12 AM »

Quote from: Heckler on February 05, 2016, 09:50:08 AM

Today is (better be!) the day!

I'm staring at the checking account, waiting for that final payment to come out. Haven't heard a word from Mortco. about The End, but my calculations in relation to the balance 6 weeks ago says this final payment will be $200 less than normal.

Then I have to crack the bottle of Muscato DAsti and drink it all myself, because on Monday my infertile wife of 20 years was told she shouldn't drink alcohol for at least the next three months! It's been an exciting and confusing week!

Thank goodness for the three bedrooms! Our friend who is a real estate developer suggested we buy the larger fixer upper instead of the smaller well decorated unit for the same price. You can repaint, but it's impossible to add sqft. to a strata. Now... Which room has to go, the craft/sewing room or the spare bedroom for visitors from Ontario?

OMG Congratulations on becoming a DAD!!! And how awesome the timing is - it's supposed to be this way!

I would theoretically qualify as visitor from Ontario, but still suggest that room goes! As a knitter and crafter I think the hobby room will be VERY important in the next years to find some peace and quiet time...

Heckler · « **Reply #693 on:** February 05, 2016, 12:15:12 PM »

Whoa, heavy shit when you put that in CAPS.

pdxmonkey · « **Reply #694 on:** February 05, 2016, 08:55:56 PM »

Quote from: pdxmonkey on December 02, 2015, 08:44:40 PM

Quote from: pdxmonkey on October 19, 2015, 07:32:00 PM
I've been working at my mortgage for a while now. I originally had a 30 yr $146000 loan. In 2012 I refinanced into a 15 yr @ 2.875%. As of today I have about $67,500 remaining.

I flip flop between investing more and paying off the mortgage. I have been maxing out my contributions to a Roth IRA since my mid 20's and last year I maxed out my 401k (Roth) for the first time and will be doing so again this year. I had always considered retiring early, but have only recently considered retiring extremely early and finally about 2 months ago opened up a taxable investment account in addition to my 401k and IRA accounts as I'll need money outside those accounts to live on. I've put some money into this and started paying the mortgage down less aggressively although still more than the minimum payment. I really want to get it paid off even though mathematically it is not necessarily the best idea. If P/E ratio goes lower on the market I will probably not pay any extra on the mortgage.

Down to $60k as of tomorrow. I threw some dry powder at it as the S&P 500 is still near all time highs and I feel like I'm dollar cost averaging in enough per month right now. Flows out of my bank savings account into the market + my recent mortgage payments are greater than my current income so doing both isn't sustainable long term. I will probably have to slow down the mortgage payoff next year some time OR work more to keep paying it down quickly. $60k seems really close to being done, but calendar wise there is a good distance to go.

Jan. 2015 - ~100k
Oct. 2015 - ~$67500
Dec.3, 2015 - ~$60k
Feb. 5, 2015 - $52,108.53

Not allowed to contribute to a Roth IRA this year. I don't like the current market prospects enough to put the whole $5500 I was going to put into the Roth for 2015 into a taxable account so I used some of it on the mortgage. It's exciting to see my balance go down so quickly since the beginning of 2015, but disappointing to know this rate is no longer sustainable long term now that late last year I started investing in a taxable account as well. Because...the math.

asauer · « **Reply #695 on:** February 09, 2016, 06:18:59 AM »

Dropped it another 3k this month. Down to 85,500!

Scubanewbie · « **Reply #696 on:** February 09, 2016, 07:10:08 AM »

Love hearing everyone's progress. Keep it up! I'm in a slow and steady plod towards payoff in 2020, a little less than 15 years after purchasing the house.

Threshkin · « **Reply #697 on:** February 15, 2016, 12:47:03 PM »

Quote from: IowaStache on February 15, 2016, 12:35:37 PM

Question for you guys -

Wife said something today as a joke that I kind of want to do. Talk me out of it.

We have $X left on our mortgage, where X represents about 1-1.25 years worth of expenses. We have 0.5X right now in cash (emergency fund), and will be receiving 0.5X in the form of a bonus in early April. She was saying that we could pay the entire thing off then and we'd be mortgage free. That'd put our payoff at just under a year which would be a ton of fun for me.

Obviously that leaves us with no emergency fund, which is why she was joking. However, I know MMM has talked about having a HELOC open in the past as an emergency fund of sorts, which then allows him to have more money invested. We could open one for < $100 in the case of emergencies, and then build back our emergency fund over the next 3 months. I, the ever impatient one, want to do it.

Tell me this is a bad idea.

I spent my emergency fund to pay off the last of my mortgage. I did not open a HELOC but instead just sweated it out. I reallocated 100% of the old mortgage payment plus all non-401k funds to rebuilding my emergency fund. It went pretty back up quick.

Threshkin · « **Reply #698 on:** February 15, 2016, 01:59:22 PM »

Quote from: IowaStache on February 15, 2016, 12:53:19 PM

Quote from: Threshkin on February 15, 2016, 12:47:03 PM
Quote from: IowaStache on February 15, 2016, 12:35:37 PM
Question for you guys -

Wife said something today as a joke that I kind of want to do. Talk me out of it.

We have $X left on our mortgage, where X represents about 1-1.25 years worth of expenses. We have 0.5X right now in cash (emergency fund), and will be receiving 0.5X in the form of a bonus in early April. She was saying that we could pay the entire thing off then and we'd be mortgage free. That'd put our payoff at just under a year which would be a ton of fun for me.

Obviously that leaves us with no emergency fund, which is why she was joking. However, I know MMM has talked about having a HELOC open in the past as an emergency fund of sorts, which then allows him to have more money invested. We could open one for < $100 in the case of emergencies, and then build back our emergency fund over the next 3 months. I, the ever impatient one, want to do it.

Tell me this is a bad idea.

I spent my emergency fund to pay off the last of my mortgage. I did not open a HELOC but instead just sweated it out. I reallocated 100% of the old mortgage payment plus all non-401k funds to rebuilding my emergency fund. It went pretty back up quick.

That settles it! I told my wife that if Threskin* agreed with me that we should do it.

*Replace preceding name with any and all posters who agree with me

:). Seriously, though, thanks for the reply. We'd be looking at a 3 month build back so I don't see it as a huge issue, and the payoff would be a ton of fun.

I had about a six month build back time. But I also had a good amount of after tax investments that I could tap if necessary. I consider it my own personal LOC.

cheddarpie · « **Reply #699 on:** February 15, 2016, 08:12:28 PM »

Quote from: IowaStache on February 15, 2016, 12:35:37 PM

Question for you guys -

Wife said something today as a joke that I kind of want to do. Talk me out of it.

We have $X left on our mortgage, where X represents about 1-1.25 years worth of expenses. We have 0.5X right now in cash (emergency fund), and will be receiving 0.5X in the form of a bonus in early April. She was saying that we could pay the entire thing off then and we'd be mortgage free. That'd put our payoff at just under a year which would be a ton of fun for me.

Obviously that leaves us with no emergency fund, which is why she was joking. However, I know MMM has talked about having a HELOC open in the past as an emergency fund of sorts, which then allows him to have more money invested. We could open one for < $100 in the case of emergencies, and then build back our emergency fund over the next 3 months. I, the ever impatient one, want to do it.

Tell me this is a bad idea.

Let us know what you do! I'm in a similar position where I *could* pay off my mortgage now, but it would mean liquidating my emergency fund and taking a loss on the investments (OK now for tax loss harvesting purposes and, while I don't like the hint of timing the market, it seems like an ok time to be gradually getting back in...). I hadn't thought about the HELOC idea before. That might be a good way to do it. Without a mortgage, I could probably get my savings back up within the year ... which also makes me think instead of saving more I should just save like a dog and send all my extra money to the mortgage. I am talking myself in circles!

So if you have a 3-month build back, the alternative is you just pay your mortgage off in 3 months? That seems like a better idea ... but either way, so awesome that you are about to knock this baby out!! Congrats!

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