Author Topic: Mortgage Payoff Club!!  (Read 314035 times)

bzzzt

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Re: Mortgage Payoff Club!!
« Reply #700 on: January 20, 2016, 08:38:00 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

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Re: Mortgage Payoff Club!!
« Reply #701 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

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Re: Mortgage Payoff Club!!
« Reply #702 on: January 22, 2016, 08:11:40 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

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Re: Mortgage Payoff Club!!
« Reply #703 on: January 22, 2016, 05:45:25 PM »
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!

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #704 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

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Re: Mortgage Payoff Club!!
« Reply #705 on: January 23, 2016, 11:28:51 AM »
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

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Re: Mortgage Payoff Club!!
« Reply #706 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

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Re: Mortgage Payoff Club!!
« Reply #707 on: January 24, 2016, 09:50:35 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

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Re: Mortgage Payoff Club!!
« Reply #708 on: February 02, 2016, 07:13:18 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.


$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

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Re: Mortgage Payoff Club!!
« Reply #709 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

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Re: Mortgage Payoff Club!!
« Reply #710 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.)
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See https://www.tangerine.ca/en/referafriend/index.html

Faraday

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Re: Mortgage Payoff Club!!
« Reply #711 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/
« Last Edit: March 08, 2016, 11:50:54 AM by Faraday »
FIRE in 2020.

plainjane

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Re: Mortgage Payoff Club!!
« Reply #712 on: February 04, 2016, 06:37:51 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.
Using procrastination to my advantage since 2001.

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #713 on: February 04, 2016, 10:08:56 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

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Re: Mortgage Payoff Club!!
« Reply #714 on: February 04, 2016, 06:50:44 PM »
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.
FIRE in 2020.

Mermaid3011

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Re: Mortgage Payoff Club!!
« Reply #715 on: February 05, 2016, 07:34:27 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

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Re: Mortgage Payoff Club!!
« Reply #716 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

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Re: Mortgage Payoff Club!!
« Reply #717 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?
« Last Edit: February 05, 2016, 09:59:35 AM by Heckler »

Mermaid3011

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Re: Mortgage Payoff Club!!
« Reply #718 on: February 05, 2016, 11:17:12 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

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Re: Mortgage Payoff Club!!
« Reply #719 on: February 05, 2016, 12:15:12 PM »
Whoa, heavy shit when you put that in CAPS.

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #720 on: February 05, 2016, 08:55:56 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

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Re: Mortgage Payoff Club!!
« Reply #721 on: February 09, 2016, 06:18:59 AM »
Dropped it another 3k this month.  Down to 85,500!

Scubanewbie

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Re: Mortgage Payoff Club!!
« Reply #722 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

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Re: Mortgage Payoff Club!!
« Reply #723 on: February 15, 2016, 12:47:03 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

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Re: Mortgage Payoff Club!!
« Reply #724 on: February 15, 2016, 01:59:22 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

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Re: Mortgage Payoff Club!!
« Reply #725 on: February 15, 2016, 08:12:28 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!

Lmoot

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Re: Mortgage Payoff Club!!
« Reply #726 on: February 16, 2016, 12:13:53 AM »
I officially joined the prepay club in December. Prepaid $15k so far with $41k to go...in my 7th year of a 30 year mortgage. I could pay it off by end of 2017, but I think I'll pay it down to $10k, switch to saving for the DP on an investment property, then pay it off after closing on the 2nd property. That way I don't mess with my credit score (which can drop 50+ points if paying off an installment loan...especially if it's your only one), right before a major purchase. So I'm hoping to have it completely paid off, and to have a second property by end of 2018.

dandypandys

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Re: Mortgage Payoff Club!!
« Reply #727 on: February 16, 2016, 08:51:41 AM »
Update on the below and lots of thoughts swilling about what to do next.

So I continued with what I said I would do: I am now at $47,658.00!!
Also with a few sales in our condo area, we now owe less than what it is worth. Zillow says it is worth 79k now, though i think it would sell for more. I bought it for 140k in 2003 :( So it is sad to think of selling it for so much less.. but i really would like a bigger home so i can have a better art studio.
I am now wondering all sorts of things, could/should i get a 2nd mortgage, should i rent or sell this condo, should i stick some more savings in the principle or hold in case i need it for a downpayment.



I've decided I'm in! yay! Gonna send a huge check to them this week :) take me down to 68k owed. Then we are going to put an extra 1000 towards it every month. yippee.
We want to sell it in a few years maybe 3, once we have it paid off and have cash for a downpayment on another house.
 Logged

dandypandys

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Re: Mortgage Payoff Club!!
« Reply #728 on: February 16, 2016, 01:38:36 PM »
I've been reading some of this thread today and have a few Qs for you all.
Is there a nifty worksheet download anywhere to plunk my numbers in and see how much i am saving as i pay down?
Someone mentioned being fined for paying down, i never knew that. i have a coldwell banker loan, do you think i have payment penalties or paying off early penalties?
i just thought i paid it off and that was that, but do i have to have a meeting to discuss that with them??

Ive never bothered to refinance- wondering if i should at this late stage.. i have a 5.9% 30 yr on 130k with 47k left. I could pay it all off today if i really wanted to, but am thinking about buying another place.

thanks for any help given.

Heckler

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Re: Mortgage Payoff Club!!
« Reply #729 on: February 16, 2016, 05:41:25 PM »

*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'd go 50/50.  Keep the EF, but dump the bonus onto it.  That said, we've stopped excess mortgage payments in the past two years since I learned how to invest smartly.  Still paid off the mortgage, but also increased savings by 40K.  Caveat - we paid of a 25 year mortgage in 13 years through bonuses, raises etc, but didn't have more than a $3k EF until two years ago.  Worth every penny!

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #730 on: February 16, 2016, 05:59:19 PM »
I've been reading some of this thread today and have a few Qs for you all.
Is there a nifty worksheet download anywhere to plunk my numbers in and see how much i am saving as i pay down?
Someone mentioned being fined for paying down, i never knew that. i have a coldwell banker loan, do you think i have payment penalties or paying off early penalties?
i just thought i paid it off and that was that, but do i have to have a meeting to discuss that with them??

Ive never bothered to refinance- wondering if i should at this late stage.. i have a 5.9% 30 yr on 130k with 47k left. I could pay it all off today if i really wanted to, but am thinking about buying another place.

thanks for any help given.
My mortgage provider has an amortization calculator that will show me how much I save at various payment levels. Mint.com will also do it for you if you set up a goal. I am sure there are generic calculators out there as well as both of those sites require accounts. Shouldn't be hard to find one on google I wouldn't think. Early payment penalties are not typical in the United States, but you should check with your provide. I always check before getting any loan that it has no penalties for early payment, so have never had to do so after the fact. 5.9% is really high. If you decide not to pay it off you should probably think about refinancing whats left into a 10 yr or 15 year with a rate under 3%. What is the remaining period left at a normal payment rate?

dandypandys

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Re: Mortgage Payoff Club!!
« Reply #731 on: February 16, 2016, 07:25:55 PM »
ah I've never thought to remember that, so went to look, it says 2035.. I have been hacking away at the principle fairly well. I'm glad i probably don't have penalties for early payment of loan, but i should call them to see. One of my friends told me once that refinancing her home was so much work! and so i have just put it off because i haven't had time to deal with it and instead just thought i would pay it fast.

allsummerlong

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Re: Mortgage Payoff Club!!
« Reply #732 on: February 20, 2016, 10:47:33 AM »
$139k
$131,600
$126,000.
$119,200

Now just squeaking in under $115,000.

Another milestone : Now under $110k at $108,800

Our goals are:
<$100,000 by May 1/16
<$80,000 by Dec 31/16
100% gone by Dec 31/18 (before 40)

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #733 on: February 22, 2016, 12:00:11 PM »
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).


Update: 
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)
  • 02/2016 - 52%  (just bumped my additional principal payment up to 1400 extra each month)
So happy to be over 50%!  I still haven't signed the paperwork for the reamortization.  Should probably do that sooner rather than later, because right now, it's free, but I sort of want to see if I can get it to a nice even number before I do it. 
Sometimes nothing can be a real cool hand

dogboyslim

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Re: Mortgage Payoff Club!!
« Reply #734 on: February 22, 2016, 05:14:07 PM »
...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

Office discretionary bonus was better than expected so we decided to pay it off.  As of today, We have no debt other than the temporary credit card debt that gets paid off every month.  While it feels good, it also doesn't really feel different as we are about to sit down to our baked chicken for dinner.

nnls

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Re: Mortgage Payoff Club!!
« Reply #735 on: February 22, 2016, 05:33:44 PM »
...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

Office discretionary bonus was better than expected so we decided to pay it off.  As of today, We have no debt other than the temporary credit card debt that gets paid off every month.  While it feels good, it also doesn't really feel different as we are about to sit down to our baked chicken for dinner.

Congratulations!

Faraday

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Re: Mortgage Payoff Club!!
« Reply #736 on: February 22, 2016, 06:23:30 PM »
...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

Office discretionary bonus was better than expected so we decided to pay it off.  As of today, We have no debt other than the temporary credit card debt that gets paid off every month.  While it feels good, it also doesn't really feel different as we are about to sit down to our baked chicken for dinner.

This is fantastic! Congratulations! I'll bet that was the best baked chicken you've ever had!
FIRE in 2020.

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #737 on: February 22, 2016, 08:22:19 PM »
...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

Office discretionary bonus was better than expected so we decided to pay it off.  As of today, We have no debt other than the temporary credit card debt that gets paid off every month.  While it feels good, it also doesn't really feel different as we are about to sit down to our baked chicken for dinner.

I'm betting next month feels different. No payment to make for the first time. Congrats!

Heckler

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Re: Mortgage Payoff Club!!
« Reply #738 on: February 22, 2016, 09:32:10 PM »

Someone mentioned being fined for paying down, i never knew that. i have a coldwell banker loan, do you think i have payment penalties or paying off early penalties?
i just thought i paid it off and that was that, but do i have to have a meeting to discuss that with them??



This is not a "do you think" question to ask us.   You have a mortgage contract that will define prepayment terms and conditions.   Understand what you've signed. Ideally before you sign it, but before you overpay by accident would be good too.

Heckler

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Re: Mortgage Payoff Club!!
« Reply #739 on: February 22, 2016, 09:40:22 PM »



I'm betting next month feels different. No payment to make for the first time. Congrats!

We just had our first pay check that didn't disappear to mortgage oblivion.  Thanks to MMM, it did however disappear to the wife's RSP account to buy emerging markets index which are currently lowest in our allocation. 

So, it didn't feel much different yet.  Still eating spaghettini with homemade meatballs.  We splurged and added green beans though!

dabears847

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Re: Mortgage Payoff Club!!
« Reply #740 on: February 24, 2016, 02:27:34 PM »
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.
I'm actually torn on this right now, $32,000 left on the mortgage, and I'd like to invest the bonus in April rather than payoff the house.

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #741 on: February 24, 2016, 05:11:58 PM »
Wait until April and see where the markets are. No need to worry about it now. You can't pay the mortgage or invest until you get the money. If the markets are significantly up or down from where they are now your decision may change.

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #742 on: February 27, 2016, 09:34:37 AM »
So after payoff, my credit score went down by over 30 points.  This is without any other major changes in credit activity. Not sure if I should care. 

William Cannon

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Re: Mortgage Payoff Club!!
« Reply #743 on: February 27, 2016, 04:30:06 PM »
I joined the club last December.  I sleep better at night now for sure.  I also feel a sense of accomplishment to reach this goal in our mid 30s on one income, while my wife stays home and raises our 4 children.  Not only that, but it brought me and my wife closer together since we had to work as a team, endure the same sacrifices for the good of our little clan, and collaborate on how to do it without burdening our family life.  I am truly blessed.

Tapa


Lmoot

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Re: Mortgage Payoff Club!!
« Reply #744 on: February 28, 2016, 10:05:45 AM »
So after payoff, my credit score went down by over 30 points.  This is without any other major changes in credit activity. Not sure if I should care.

If you don't mind me asking:

1) Do you have a car loan or any other type of loan?
2) How many credit cards do you have?
3) How old was your mortgage when you paid it off?

I ask because I'm concerned about this happening to me when I pay off my mortgage because I don't have any other installment type loan and am wondering if because my mortgage will  be 8 years old when I pay it off, if that will impact my age of credit greatly when I close it. I'll be buying my first rental property about a year after the payoff and the interest rate will already be higher due tp it being an investment property so I want to minimize reasons for lenders to raise the rate of the new mortgage even higher.

Debts_of_Despair

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Re: Mortgage Payoff Club!!
« Reply #745 on: February 28, 2016, 03:14:13 PM »
If you don't mind me asking:

1) Do you have a car loan or any other type of loan?
No.  Last had a car loan in Nov of 2014.
2) How many credit cards do you have?
Three, with a total limit around 50k.  I only use two regularly.  Utilization rarely goes beyond 4%. This is my only current credit usage.
3) How old was your mortgage when you paid it off?
About 8.5 years.

Keeping up a good credit score is a game for suckers, apparently.
« Last Edit: February 28, 2016, 03:15:47 PM by Debts_of_Despair »

Faraday

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Re: Mortgage Payoff Club!!
« Reply #746 on: February 28, 2016, 07:19:53 PM »
I ask because I'm concerned about this happening to me when I pay off my mortgage because I don't have any other installment type loan and am wondering if because my mortgage will  be 8 years old when I pay it off, if that will impact my age of credit greatly when I close it. I'll be buying my first rental property about a year after the payoff and the interest rate will already be higher due tp it being an investment property so I want to minimize reasons for lenders to raise the rate of the new mortgage even higher.

MMM frugalists live outside that realm and they know it. When you have zero "back end debt", your credit cards are paid off, cars are paid off and they figure out you've got investments cranking out your living wage, they fall all over themselves to loan money to you.
« Last Edit: March 08, 2016, 11:50:04 AM by Faraday »
FIRE in 2020.

Lmoot

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Re: Mortgage Payoff Club!!
« Reply #747 on: February 29, 2016, 09:36:14 AM »
^ I definitely agree that they're for the lenders. They are not meant to reward us for sure. High rollers and high spenders are not the only ones that need to be concerned with credit scores though...folks who are into real estate investing need to maintain a high score as the interest rate will have a direct (sometimes significant) impact on monthly cashflow...which is where my interest lies.

Since I plan on floating multiple properties within the next 5 years, even the slightest increase in the rates I can qualify for could cost me thousands of dollars per year, per property, until I refinance or pay it off.

lol, I'm definitely not rolling around in a brand new 4x4. My 2003 Honda was paid off in 2009 (paid off in 9 months), and I expect to keep it for at least 7 more years, and my monthly requirements are under $1000. My non-necessities push that up a few hundred dollars more, but I could live on less than $1000 if I had to, which would cover mortgage, gas (work from home at 1 job, live 5 min walk from 2nd job), food (parents have a backyard homestead, and I can buy staples at Costco), and car insurance. I could probably even slip my phone bill in there at $40 and stay sub $1k. I could get access to internet via phone/friends/family/library/both jobs. Granted, I DON'T get by on the minimum right now because I don't have to...but it's comforting to know that I could. And I have purposely designed it that way.

And I'll approach my balancing of real estate expenses the same way...minimize minimize minimize....which unfortunately means playing the game I was never meant to win.

Lmoot

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Re: Mortgage Payoff Club!!
« Reply #748 on: February 29, 2016, 09:44:27 AM »
If you don't mind me asking:

1) Do you have a car loan or any other type of loan?
No.  Last had a car loan in Nov of 2014.
2) How many credit cards do you have?
Three, with a total limit around 50k.  I only use two regularly.  Utilization rarely goes beyond 4%. This is my only current credit usage.
3) How old was your mortgage when you paid it off?
About 8.5 years.

Keeping up a good credit score is a game for suckers, apparently.

Thank you so much for sharing that. My profile looks similar...paid off car, no other loans than mortgage, will be at 8 years at pay off, except I have 5 cc's. My current utilization is about 15-20% due to balances that are paid off in full each month, and a balance on a 0% promotion. But that will be gone by the time I apply for a new mortgage, and I'm aiming for 0-5% utilization.

I'm thinking about leaving a little of the mortgage left and paying it off after I buy another property so my credit doesn't drop, but it sure would be easier and faster to save for a DP with it completely gone so I won't have that monthly bill anymore.

IndyPendent

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Mortgage Payoff Club!!
« Reply #749 on: February 29, 2016, 04:46:42 PM »
Paid off today! Couldn't believe the size of the smile on my face!

Paid off in 4.5 years--the mortgage was just 1.5x salary at the beginning (pre-MMM days).

Ramped up efforts in early 2013, wrote the final check today!
« Last Edit: February 29, 2016, 06:07:34 PM by IndyPendent »