Author Topic: Mortgage Payoff Club!!  (Read 324581 times)

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #750 on: March 08, 2016, 09:22:10 AM »
I'm joining the club!!  I want to be out from under the crushing debt of my mortgage.
I've been on the fence about this for a few years and stashing all of my rental income into a sinking fund invested in VTSAX.  Last month I sold all of the sinking fund and I took a big chunk from a cash account to pay down the mortgage prior to a reamortization.  Goal is to pay the mortgage down to a point that I could afford payments even if I'm not employed.  That might be all the way to zero, or it might not.  Even with my plans to continue paying 1000 extra each month, I'm still a looooong way away from retiring this debt, so I'm trying to speed that up.  I still have a long time to figure out the end result.

I'm in a HCOL city in a big house.  I'll show progress in terms of % paid off against initial home value (equity against initial sale price).
It seems that my timing was somewhat fortuitous - selling off my sinking fund near the top of the market and moving the cash to my mortgage and then slowly buying back in at a lower price as cash becomes available (earnings and 401k match).  It's great when things work out, but I'm under no illusions that it had anything to do with my acumen, and instead realize that the next time it could be the opposite.  So I still want to pay this house down, and plan to make one more sizable deposit before I sign the paperwork for the recast (can you believe I still haven't done it!?) 

Anyway, not huge progress since August, but here's the updated list:
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)
  • 03/2016 - 48%  (now paying 1400 extra each month)
Here's the best part (to me):  Originally slated to make last payment at the age of 74.  As of today, my last payment is scheduled for age 64!  And moving each month. 
Sometimes nothing can be a real cool hand

Faraday

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Re: Mortgage Payoff Club!!
« Reply #751 on: March 08, 2016, 11:54:25 AM »
... broke $100k on the mortgage principal owed. Today it's $98,519.67.

I'm liking the energy this thread keeps tapping into. Awesome mortgage paydown energy here!

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....pay this house down, and plan to make one more sizable deposit before I sign the paperwork for the recast (can you believe I still haven't done it!?) 

GO GO GO BlueHouse! You are in good company, don't fret that you delayed the recast - you well know, the more you do up-front, the lower the payment will be after the recast. (and if they are like my mortgage provider, they recast ONLY ONCE, so you gotta make it good....) I'm aiming for a recast by May 2016, which is much later than I'd planned, but it's not a problem.

Please keep us posted - I want to hear what happens to your monthly mortgage payment after the recast!
« Last Edit: March 08, 2016, 12:01:58 PM by Faraday »
FIRE in 2020.

couponvan

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Re: Mortgage Payoff Club!!
« Reply #752 on: March 08, 2016, 06:06:03 PM »
We have $18K left...We've been adding an extra $1.25K to the payments certain months as we are able.  Plan to drop a large payment out of DH's bonus 3/15/16 and have our mortgage gone by 9/8/16....Of course last year I said something similar when the balance was around $26K and then the following week our kitchen and basement were flooded and we spent all last Summer redoing our kitchen.

The basement is still at the studs...We'd rather cash flow it without a 4.625% interest rate so we're trying to pay off the mortgage first.

Joining the club should give us the incentive to finish strong.
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pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #753 on: March 08, 2016, 11:19:08 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).
It seems that my timing was somewhat fortuitous - selling off my sinking fund near the top of the market and moving the cash to my mortgage and then slowly buying back in at a lower price as cash becomes available (earnings and 401k match).  It's great when things work out, but I'm under no illusions that it had anything to do with my acumen, and instead realize that the next time it could be the opposite.  So I still want to pay this house down, and plan to make one more sizable deposit before I sign the paperwork for the recast (can you believe I still haven't done it!?) 

Anyway, not huge progress since August, but here's the updated list:
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)
  • 03/2016 - 48%  (now paying 1400 extra each month)
Here's the best part (to me):  Originally slated to make last payment at the age of 74.  As of today, my last payment is scheduled for age 64!  And moving each month.

Very nice work. Shaved 10 years off. My goal is similar. I want to not have to worry if I get laid off and have to sustain myself on unemployment for a bit vs draining the stache. I looked into recasting, but my provider does not recast, so it's zero or bust.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #754 on: March 09, 2016, 08:36:32 PM »
(and if they are like my mortgage provider, they recast ONLY ONCE, so you gotta make it good....) I'm aiming for a recast by May 2016, which is much later than I'd planned, but it's not a problem.

Please keep us posted - I want to hear what happens to your monthly mortgage payment after the recast!
Thanks Faraday!  Yes, mine only does it once as well.  I don't think it makes any difference financially whether I wait a little longer to re-cast or do it immediately.  After all, interest is calculated against my outstanding principal.  Do you know if there's any advantage to recasting now vs. 6 months or a year from now?  (Assuming the option to do so for free still exists).

[I looked into recasting, but my provider does not recast, so it's zero or bust.
Yikes.  I thought all mortgages allowed for one recast.  I hope mine doesn't take the option away. 
Sometimes nothing can be a real cool hand

Lmoot

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Re: Mortgage Payoff Club!!
« Reply #755 on: March 10, 2016, 10:20:53 AM »
The benefit of recasting later is if you make pre payments along the way. I've prepaid my mortgage by $15k and even though my lender required a $5k payment within 30 days of recasting...the previous amount I've paid down will affect my new monthly payment. Most recasts won't affect your monthly payment that much unless you prepay early into the mortgage. I'm 7 years in, 15k prepaid. I want to get to 50% pre paid within 10 years, then recast the other 50% out to the remaining 20 years (which I'll probably pay off early once I reach a certain level of investment property cash flow).

ryan.triguy

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Re: Mortgage Payoff Club!!
« Reply #756 on: March 11, 2016, 05:10:42 PM »
Hello All..

I was wondering about some quick advice from fellow MMM's.  I was just introduced within the last month and have been eating the info as fast as I can.  My wife is totally on board as well which is awesome. 

The advice I am seeking follows the mortgage payoff.  We have started paying an extra third of our monthly payment in bi monthly payments on our 30 yr which is really at 28.5 yrs at 3.375%.  We were going to refi but after lots of consideration she wanted to hold off since the rate would not change much and we could still just make the same inflated payment.  We have an extra 20k sitting doing nothing in savings.  I know we have been ignorant to the ways of money working for us.  We are debating if it would be better to throw this at the mortgage or start a Vanguard type stock.  She already contributes to a roth IRA and I have retirement through work and a deffered compensation that I contribute to at work.  She is also finishing out her Military time with reserves which will benefit us greatly once we can draw from it.

My thinking is although we have several avenues once we hit the random ages set up by retirement.  I want to retire early, which will reduce my pension.  I know I will keep working part time and she will work as well. 

Would it be better to keep attempting to be mortgage free or put the 20k in say Vanguard and let it work or us. 

My long term plan is to pay as much as possible in the next 6 yrs on mortgage at that point retire at 15yrs on job which give me 30% at 60yrs old.  At that point sell our house moving back to the Midwest where her family is and buying cash for house.  Then working part time while kids are in school. 

Any thoughts?  Any and all are appreciated.  Sorry if im tagging on to the Mortgage payoff but in a way it is working toward the same goal.  Thanks

Rural

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Re: Mortgage Payoff Club!!
« Reply #757 on: March 11, 2016, 06:09:01 PM »
Hello All..

I was wondering about some quick advice from fellow MMM's.  I was just introduced within the last month and have been eating the info as fast as I can.  My wife is totally on board as well which is awesome. 

The advice I am seeking follows the mortgage payoff.  We have started paying an extra third of our monthly payment in bi monthly payments on our 30 yr which is really at 28.5 yrs at 3.375%.  We were going to refi but after lots of consideration she wanted to hold off since the rate would not change much and we could still just make the same inflated payment.  We have an extra 20k sitting doing nothing in savings.  I know we have been ignorant to the ways of money working for us.  We are debating if it would be better to throw this at the mortgage or start a Vanguard type stock.  She already contributes to a roth IRA and I have retirement through work and a deffered compensation that I contribute to at work.  She is also finishing out her Military time with reserves which will benefit us greatly once we can draw from it.

My thinking is although we have several avenues once we hit the random ages set up by retirement.  I want to retire early, which will reduce my pension.  I know I will keep working part time and she will work as well. 

Would it be better to keep attempting to be mortgage free or put the 20k in say Vanguard and let it work or us. 

My long term plan is to pay as much as possible in the next 6 yrs on mortgage at that point retire at 15yrs on job which give me 30% at 60yrs old.  At that point sell our house moving back to the Midwest where her family is and buying cash for house.  Then working part time while kids are in school. 

Any thoughts?  Any and all are appreciated.  Sorry if im tagging on to the Mortgage payoff but in a way it is working toward the same goal.  Thanks


Wait a couple of months and read a lot more. I'm usually pretty firmly in the pay off the mortgage camp. But there are good reasons not to with a rate as low as yours. If you hang around here for a couple of months, you'll be in a much better position to make an informed decision for your $20k, and a couple of months almost certainly isn't going to make a big difference in terms of gains,

asauer

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Re: Mortgage Payoff Club!!
« Reply #758 on: March 11, 2016, 06:56:45 PM »
Down to 84k.  Picked up a couple of gigs for this month to make some more headway. 

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #759 on: March 11, 2016, 07:10:23 PM »
@ryan.triguy,  What is the best way to improve your monthly "margin of safety" in cashflow?   Does $20K need to pay off any other debts that will increase your monthly free cash flow?   That's where the real magic begins to pay off debt...  when you turn the momentum in the your favor.

Also, without knowing your mortgage balance, it's impossible to say if putting the $20K in the mortgage is worth it.   If you put that chunk, plus other principal prepays together, you may be in a position to "recast" the mortgage, again to reduce your monthly "commitment" and improve free cash flow.   Then apply the free cast towards the mortgage (accelerating payoff since you'd no longer be paying off interest on that $20K that just extends your payoff timeline)!

FunkyStickman

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Re: Mortgage Payoff Club!!
« Reply #760 on: March 14, 2016, 08:32:17 AM »
Down to $56K, and about to drop my tax return on it (again). Just that will cut almost 9 years off the mortgage. (EDIT) We've cut 9 years off total so far... not from this 1 payment.

For every dollar I pay on principal, I'm paying $1.75 in interest.

Sickening. My wife is finally 100% on board with this.
« Last Edit: March 14, 2016, 08:33:54 AM by FunkyStickman »
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ryan.triguy

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Re: Mortgage Payoff Club!!
« Reply #761 on: March 14, 2016, 09:47:33 AM »
indentured4now,  Mortgage is the only debt we have.  We haven't paid down enough to recast yet.  Im not really worried about the monthly payment now just thinking more of long term paying it down.  My thoughts are to pay down enough so when we are ready to sell 8-10 years we would net enough to downsize and pay cash, possibly enough left over to invest at that point.  Im just debating if it would pay more in the future to invest the 20k now in longer time in more would make.  Seems like either way is going to save me money in long run. 

frost7777

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Re: Mortgage Payoff Club!!
« Reply #762 on: March 15, 2016, 12:09:24 PM »
Hello, first post after following MMM for several years.  Started getting serious about paying the mortgage off in 2014.  Hopping to join the club by next March!

Single income.
My wife stays at home with our three children.

12/2010 < 80k
03/2013 < 70k
04/2014 < 60k
12/2014 < 50k
09/2015 < 40k
03/2016 < 30k
03/2017 = 0 ?? 

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #763 on: March 15, 2016, 12:47:12 PM »
I have 12.5 months left on my mortgage. What do people around here do to celebrate, when it's all done? Would taking the kids to Disneyland be facepunch-worthy? they've missed out on fun stuff because of my financial priorities, so including them in the reward seems fair, and like an object lesson in priority-setting.

so: Disneyland in 2017?

Need more info.  Where do you live? how old are the kids?  Drive or Fly?  Why do you think going to Disneyland would be more fun for them than camping or going to the beach?  What lesson are you trying to teach them and how does Disneyland fit in to that lesson? 
Sometimes nothing can be a real cool hand

Neustache

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Re: Mortgage Payoff Club!!
« Reply #764 on: March 15, 2016, 12:58:07 PM »
We are going to DisneyWorld for the first time when we pay off our mortgage (but we also go to Disneyland once a year on our huge road trip).   We'll drive down (MO) because there's things to do on the way there and the way back.  I personally don't find it face-punch worthy but most here would. 


dandypandys

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Re: Mortgage Payoff Club!!
« Reply #765 on: March 15, 2016, 01:37:29 PM »
I just put another 1k in, so down to 44k now :) Also, I figured out how to do it direct debit, so i saved a stamp and future stamps too. Bonus!

Kaydedid

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Re: Mortgage Payoff Club!!
« Reply #766 on: March 16, 2016, 08:39:47 AM »
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.

Seconding this.  Check out local banks and credit unions if you can.  4 years ago, we had poor credit due to fiscal responsibility (no prior loans), and while the big banks wouldn't give us the time of day, both the local bank and credit union immediately approved us for much more than we were looking to borrow.  They actually sat down with us and got an accurate financial picture, whereas the big banks just ran the credit score.

Kaydedid

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Re: Mortgage Payoff Club!!
« Reply #767 on: March 16, 2016, 08:44:20 AM »
As of today, owe ~$8.7k on the mortgage, and looking to have it paid off by the end of the year!
Original mortgage was ~$45k 3.5 years ago, but we dumped another $40k into repairs (foreclosure that needed a TON of work).

We have enough in savings to kill the mortgage today, but will wait a few months to see how a major pay cut/job change shakes out.  Can't wait to be rid of this-our only debt! 

McGeens

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Re: Mortgage Payoff Club!!
« Reply #768 on: March 18, 2016, 04:31:02 AM »
We've joined the club- paid off our mortgage in January. I've let the dust settle and rebuilt our Efund, but it feels wonderful. Started at $250k in 2007, but the first few years were slow going. Then we got focused and honed in on it in 2011, when we owed $165k. We're in Oz, so technically the account isn't closed but it is fully offset now. It feels wonderful to have it gone!!

Funnily enough, first thing the bank did was write to us offering a new mortgage and encouraging us to redraw for important life needs like renovations and cars (cars!! Seriously). I stuck that letter on the wall next to our payoff chart- ha!!

Good luck to all of you whittling down your balances. It'll all be worth it!

asauer

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Re: Mortgage Payoff Club!!
« Reply #769 on: March 18, 2016, 01:24:15 PM »
I have 12.5 months left on my mortgage. What do people around here do to celebrate, when it's all done? Would taking the kids to Disneyland be facepunch-worthy? they've missed out on fun stuff because of my financial priorities, so including them in the reward seems fair, and like an object lesson in priority-setting.

so: Disneyland in 2017?
No- I think it's just whatever your family would like, fits in your budget and fits with your values.  Travel is our "thing" and it's been on hold while we knock out the budget.  We'll be taking the family to Belize when we pay it off (hopefully 12/16).

ozbeach

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Re: Mortgage Payoff Club!!
« Reply #770 on: March 18, 2016, 06:19:25 PM »
We've joined the club- paid off our mortgage in January. I've let the dust settle and rebuilt our Efund, but it feels wonderful. Started at $250k in 2007, but the first few years were slow going. Then we got focused and honed in on it in 2011, when we owed $165k. We're in Oz, so technically the account isn't closed but it is fully offset now. It feels wonderful to have it gone!!

Funnily enough, first thing the bank did was write to us offering a new mortgage and encouraging us to redraw for important life needs like renovations and cars (cars!! Seriously). I stuck that letter on the wall next to our payoff chart- ha!!

Good luck to all of you whittling down your balances. It'll all be worth it!
My mortgage (in Australia too) is a line-of-credit not an offset, but essentially the same deal. It has been "paid off" for at least five years with a positive balance that I use as my main transaction account. Have never heard from the bank.
Late to FI; but better late than never!

redbirdfan

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Re: Mortgage Payoff Club!!
« Reply #771 on: March 19, 2016, 07:37:21 AM »
For those of you who knew you wanted to pay the mortgage off early at the time of purchase, did you go with a 15 year, 20 year, 30 year or ARM?  Did you value flexibility or paying less overall interest more?  If you could go back, would you make the same decision?   

mies

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Re: Mortgage Payoff Club!!
« Reply #772 on: March 19, 2016, 08:40:44 AM »
For those of you who knew you wanted to pay the mortgage off early at the time of purchase, did you go with a 15 year, 20 year, 30 year or ARM?  Did you value flexibility or paying less overall interest more?  If you could go back, would you make the same decision?

I knew I wanted to pay it off early, but I didn't have a job that would allow me to afford a 15 or 10 year mortgage at the time. We went with a 30 year loan at %6.24 in late 2007 and I paid extra principal when I could afford  it. We just refinanced to a 10 year %3.39 loan last year and have been making great progress with extra principal payments and the fact that the regular monthly payment now consists of more principal than interest.

With the benefit of hindsight, we should have stayed in our cheap 1 bedroom apartment for a couple of more years and saved like crazy. We could have bought a house outright or gotten a 10 year loan with a super low monthly payment. If we could have started with a 10 year loan back in 2007, I still would have tried to pay it off sooner.
Less is more.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #773 on: March 19, 2016, 10:52:07 AM »
For those of you who knew you wanted to pay the mortgage off early at the time of purchase, did you go with a 15 year, 20 year, 30 year or ARM?  Did you value flexibility or paying less overall interest more?  If you could go back, would you make the same decision?
Flexibility. My job is not super-secure, and I'm risk averse. I want the flexibility of having a smaller minimum req payment, but I'd like to do it in 15 years (or less).
Sometimes nothing can be a real cool hand

dabears847

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Re: Mortgage Payoff Club!!
« Reply #774 on: March 19, 2016, 03:09:17 PM »
It's official, the house is paid off!

Happy Dance!

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #775 on: March 20, 2016, 07:09:55 PM »
indentured4now,  Mortgage is the only debt we have.  We haven't paid down enough to recast yet.  Im not really worried about the monthly payment now just thinking more of long term paying it down.  My thoughts are to pay down enough so when we are ready to sell 8-10 years we would net enough to downsize and pay cash, possibly enough left over to invest at that point.  Im just debating if it would pay more in the future to invest the 20k now in longer time in more would make.  Seems like either way is going to save me money in long run.

@Ryan...  Classic decision to make between "invest or pay down mortgage"...   With 8-10 years on the house and your age and other info given, it seems best to invest the $20K in a classic age-adjusted mix of index funds.   In your 30's, you've got a nice, long horizon and can afford to wait out a market drop to grow that stash so your situation favors investing the $20K.   Then once it's grown a bit, look for the right chance later to reduce lending costs significantly down the road using the gains such as refi to a 15 year loan or a recast for increasing your free cashflow and savings rate.   Or you guys do the ideal thing  and downsize now to really kill the mortgage and LBYM (and avoid lifestyle creep).   Hard to do as a couple and the temptations of "keeping up" with the Jones's I know, but amazing peace of mind if you guys can pull it off.   If both of you read "The Millionaire Next Door" and agree to live that way with shared goals in mind, it certain can be done.  Good luck!

SAfAmBrit

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Re: Mortgage Payoff Club!!
« Reply #776 on: March 20, 2016, 07:59:16 PM »
Hi All

I have been lurking around the MMM site for a while and been watching this forum with interest. I got past the $100 000 point and need some support to keep going and keep myself accountable.

 A little background I am a South African, lived in England for 10 years and have been in the USA for 8 years. My SO was in the USAF for 24 years. We bought our house in Las Vegas in 2012 for $158 800 at 3.75% and first payment was 03/2012. In SA things were different and I was used to living on nothing, moved to England things were easier, came to the US and things were easy. My husband spent money easily so I thought earned huge - only to discover the world of loans, credit cards and easy credit. Fortunately I hate shopping, material things - my only requirement from material things - they work. My SO on the other hand loves shiny things!  2013, my husband was retired, earnings shot up and we owed the IRS. I was told we had x days to pay - we didn't have it in the bank so I took over the accounts - showed my husband what we owed, gave him an allowance and worked at it. We now have no debt but this mortgage so I started concentrating on eliminating it.

Principal paid off so far

2012 - $3415
2013 - $3994
2014 - $8483
2015 - $38412 (yup got rid of all the debt and $10 000 windfall not expected)
2016 - $17262 so far

Remaining balance $87322. Projected pay off date 09/09/2017 - SO 51st birthday.

I max out my 401k and IRA Roth (terms I learned in the last 2 years.)

Thanks to everyone who allowed me to lurk and inspired me so far!


Rheagar

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Re: Mortgage Payoff Club!!
« Reply #777 on: March 21, 2016, 08:14:06 AM »
Paid off my mortgage on Friday!

Bought my house 3.5 years ago in Nov 2012 for ~129k. It was an FHA loan at 3.125%, IIRC the initial loan amount was ~121k. This was before I had discovered MMM so I wasn't quite as diligent about my finances as I am today. I have a relatively high income and when I initially got the loan I figured I could just pay down the loan pretty quick to get to 20% equity and get rid of PMI. But then I learned that I was required to pay PMI for a minimum of 5 years and that REALLY ticked me off. So I began looking into ways to get rid of PMI before that 5 years was up (beyond refinancing) the only thing I could think of was to pay off the entire mortgage. So I began to sock away money into a taxable account with the intent of paying off the house in under 5 years - because fuck the bank and fuck PMI.

Well this month after I got a bonus my taxable account had enough in it to pay off the entire loan balance. So I sold it all and paid off the house on Friday. It is awesome seeing 'Paid in full' on the account! I have taken a minute every morning since to appreciate the feeling, and it feels fantastic.

For those that are worried about the math behind paying off a 3.125% loan, trust me I struggled with it mightily. But after doing the math over and over again getting rid of PMI makes the math about a wash, and I'll take the guaranteed ROR and peace of mind any day. No regrets!

BBub

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Re: Mortgage Payoff Club!!
« Reply #778 on: March 21, 2016, 09:00:41 AM »
It's official, the house is paid off!

Happy Dance!

Congrats!

Hi All

I have been lurking around the MMM site for a while and been watching this forum with interest. I got past the $100 000 point and need some support to keep going and keep myself accountable.

Welcome to the forums.  I'm glad you decided to de-lurk & hope you'll keep contributing.  Congrats on getting your finances in order & best of luck with the payoff goal!

Paid off my mortgage on Friday!
Badass!

rjbf65

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Re: Mortgage Payoff Club!!
« Reply #779 on: March 24, 2016, 07:54:25 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.


$31,609 --  a $417 reduction... I only made the normal payment this month and putting the agressive paydown on hold.  Some big possible life changes on the horizon and I want to have as much cash in the bank as possible just in case.  After the dust settles is when I'll finish it off.   

dogboyslim

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Re: Mortgage Payoff Club!!
« Reply #780 on: March 24, 2016, 08:28:50 AM »
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.

It is Official.  We got the note in the mail yesterday and confirmed that the release has been filed with the county.  Still hasn't set in.  The $2k just went to a different account.  I suppose the difference is that the account balance now goes UP with each transfer instead of down!

SAfAmBrit

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Re: Mortgage Payoff Club!!
« Reply #781 on: March 24, 2016, 09:10:45 AM »
Congrats - now for the happy dance.

Heckler

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Re: Mortgage Payoff Club!!
« Reply #782 on: March 25, 2016, 12:19:48 AM »

It is Official.  We got the note in the mail yesterday and confirmed that the release has been filed with the county.  Still hasn't set in.  The $2k just went to a different account.  I suppose the difference is that the account balance now goes UP with each transfer instead of down!

Us too!  the papers came yesterday.  Congrats!  It's awesome to see the mortgage payment going into savings instead of the floor drain!

dogboyslim

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Re: Mortgage Payoff Club!!
« Reply #783 on: March 25, 2016, 12:54:56 PM »
Congrats Heckler!

Faraday

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Re: Mortgage Payoff Club!!
« Reply #784 on: March 25, 2016, 07:03:23 PM »

It is Official.  We got the note in the mail yesterday and confirmed that the release has been filed with the county.  Still hasn't set in.  The $2k just went to a different account.  I suppose the difference is that the account balance now goes UP with each transfer instead of down!

Us too!  the papers came yesterday.  Congrats!  It's awesome to see the mortgage payment going into savings instead of the floor drain!

Congratulations DBS and Heckler! Fine Job, you've reached the end of a long, long road! Please - report back in the thread how it affects your spending, budget and lifestyle? The motivation is very helpful!
FIRE in 2020.

Heckler

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Re: Mortgage Payoff Club!!
« Reply #785 on: March 25, 2016, 07:20:39 PM »

Congratulations DBS and Heckler! Fine Job, you've reached the end of a long, long road! Please - report back in the thread how it affects your spending, budget and lifestyle? The motivation is very helpful!

Spending - $2k reduction because of the FIRE under our butt.  Last years (Nov 14-Nov 15) expenses (not including $40k mortgage) were $45k.  This past year (Mar 15-Mar 16) was $43k.  Now we save the $40k/year mortgage instead.

Budget - now putting $3,000+/month to TFSA instead of mortgage, open wife's TFSA because mine will be maxed in 3 months time, in addition to 30% pre-tax + employer match to RRSP.

Lifestyle - no change, other than I no longer worry about job security in a high tech industry. My next severance package is going towards travel!

Thank you MMM, or for sure I'd be driving a Porsche now like every one else at head office.  Still driving the 2006 Pontiac to work.

« Last Edit: March 25, 2016, 07:25:45 PM by Heckler »

dogboyslim

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Re: Mortgage Payoff Club!!
« Reply #786 on: March 28, 2016, 04:35:12 PM »
Congratulations DBS and Heckler! Fine Job, you've reached the end of a long, long road! Please - report back in the thread how it affects your spending, budget and lifestyle? The motivation is very helpful!

We are just now shopping for our $90k Escalade so we don't experience a drop in our credit score by not having any debt.... ;)

Heckler

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Re: Mortgage Payoff Club!!
« Reply #787 on: March 28, 2016, 06:01:53 PM »

We are just now shopping for our $90k Escalade so we don't experience a drop in our credit score by not having any debt.... ;)

We've been putting all spending on 2 credit cards for the last 5 years and pay in full every month.  Don't even know my credit rating, but they keep trying to raise my limit, so it must be OK.

MissNancyPryor

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Re: Mortgage Payoff Club!!
« Reply #788 on: March 28, 2016, 06:44:44 PM »
We paid off the house last October and we are certain that it was the right thing to do.  For years we did all the second guessing and wondering about "gee, it is only 3.5%, we can make more in the market" but at some point along the line it became the obvious choice.  We are in the final stages of the FIRE journey and could actually go right now except for the pure fear of being so weird and not really having the nerve to jump.  We are still building a bigger cash 'stache to bridge to our over-funded 401(K)s.  I want a really big cash pile and I am sure that it will probably be over-funded as well knowing our conservative styles.  We know we had to get out from under any debt to be totally ready.     

Wouldn't you know it, my company had massive lay offs in November and hubby's firm went through the same thing just after that.  Even though both of us are among the survivors and still have jobs there was such profound relief in knowing that we are untouchable now.  Go ahead, fire us, we know we can be FIRE at any minute.  To face that situation with a big pile of FU money and zero debt was really peaceful.  Peers were sick with fear and I felt terrible for them, but I don't think my proselytizing early retirement is welcome.   

Therefore, to the financial calculators out there please don't bother to say how we made a mistake because of some theory about making more in the market.  We considered everything and lived on both sides of the equation.  This side is more peaceful.  My house is paid off forever and that return is guaranteed, guaranteed, guaranteed.  Plus, the NW chart now has this crazy hockey stick look to it--golly, it it sure getting steep to the right without that mortgage drag, even with a flat market!   

I am rooting for all of you mortgage burners!  GO FOR IT!   

mies

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Re: Mortgage Payoff Club!!
« Reply #789 on: March 29, 2016, 03:34:08 AM »
We paid off the house last October and we are certain that it was the right thing to do.  For years we did all the second guessing and wondering about "gee, it is only 3.5%, we can make more in the market" but at some point along the line it became the obvious choice.  We are in the final stages of the FIRE journey and could actually go right now except for the pure fear of being so weird and not really having the nerve to jump.  We are still building a bigger cash 'stache to bridge to our over-funded 401(K)s.  I want a really big cash pile and I am sure that it will probably be over-funded as well knowing our conservative styles.  We know we had to get out from under any debt to be totally ready.     

Wouldn't you know it, my company had massive lay offs in November and hubby's firm went through the same thing just after that.  Even though both of us are among the survivors and still have jobs there was such profound relief in knowing that we are untouchable now.  Go ahead, fire us, we know we can be FIRE at any minute.  To face that situation with a big pile of FU money and zero debt was really peaceful.  Peers were sick with fear and I felt terrible for them, but I don't think my proselytizing early retirement is welcome.   

Therefore, to the financial calculators out there please don't bother to say how we made a mistake because of some theory about making more in the market.  We considered everything and lived on both sides of the equation.  This side is more peaceful.  My house is paid off forever and that return is guaranteed, guaranteed, guaranteed.  Plus, the NW chart now has this crazy hockey stick look to it--golly, it it sure getting steep to the right without that mortgage drag, even with a flat market!   

I am rooting for all of you mortgage burners!  GO FOR IT!   

Congratulations! What you mentioned about your job situation is the reason I want our mortgage gone. I know you can get money out of retirement accounts early for emergencies, but I'd rather just let it sit.

Great job!
Less is more.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #790 on: March 29, 2016, 06:39:43 AM »
Therefore, to the financial calculators out there please don't bother to say how we made a mistake because of some theory about making more in the market.  We considered everything and lived on both sides of the equation.  This side is more peaceful.  My house is paid off forever and that return is guaranteed, guaranteed, guaranteed.  Plus, the NW chart now has this crazy hockey stick look to it--golly, it it sure getting steep to the right without that mortgage drag, even with a flat market!   

I am rooting for all of you mortgage burners!  GO FOR IT!   
Great motivation!  Thank you for this!
Sometimes nothing can be a real cool hand

dogboyslim

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Re: Mortgage Payoff Club!!
« Reply #791 on: March 29, 2016, 11:27:46 AM »

We are just now shopping for our $90k Escalade so we don't experience a drop in our credit score by not having any debt.... ;)

We've been putting all spending on 2 credit cards for the last 5 years and pay in full every month.  Don't even know my credit rating, but they keep trying to raise my limit, so it must be OK.

Someone told me I'd be in trouble with my credit report and that I should go out and get a car loan to keep it solid, hence my jest.  Since I'm not looking for rentals my credit score really only impacts my insurance pricing now as we have no plans for future loans.  We also put most of our spending through a rewards CC that we pay off each month, but I suppose it is possible my score could drop a few points.  The reality is that our spending hasn't changed at all and we paid off the mortgage, and we have no plans to loosen up the purse strings.

YoungGranny

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Re: Mortgage Payoff Club!!
« Reply #792 on: April 01, 2016, 12:19:06 PM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.

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.

As of 4/1 the balance is at $112,377, still a long way to go but I'm actually feeling close to that sweet 5-digit mortgage! My birthday is in August and I think that would be a great target. It does feel like it's going much faster now so hopefully I can keep up this momentum!

TheInsuranceMan

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Re: Mortgage Payoff Club!!
« Reply #793 on: April 01, 2016, 12:20:23 PM »
We paid ours off yesterday!  But wait, that was due to us selling it, and getting a new house....and a new mortgage.  However, we did have 51k in equity in the property we sold!

Ceridwen

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Re: Mortgage Payoff Club!!
« Reply #794 on: April 01, 2016, 01:06:31 PM »
We paid off the house last October and we are certain that it was the right thing to do.  For years we did all the second guessing and wondering about "gee, it is only 3.5%, we can make more in the market" but at some point along the line it became the obvious choice.  We are in the final stages of the FIRE journey and could actually go right now except for the pure fear of being so weird and not really having the nerve to jump.  We are still building a bigger cash 'stache to bridge to our over-funded 401(K)s.  I want a really big cash pile and I am sure that it will probably be over-funded as well knowing our conservative styles.  We know we had to get out from under any debt to be totally ready.     

Wouldn't you know it, my company had massive lay offs in November and hubby's firm went through the same thing just after that.  Even though both of us are among the survivors and still have jobs there was such profound relief in knowing that we are untouchable now.  Go ahead, fire us, we know we can be FIRE at any minute.  To face that situation with a big pile of FU money and zero debt was really peaceful.  Peers were sick with fear and I felt terrible for them, but I don't think my proselytizing early retirement is welcome.   

Therefore, to the financial calculators out there please don't bother to say how we made a mistake because of some theory about making more in the market.  We considered everything and lived on both sides of the equation.  This side is more peaceful.  My house is paid off forever and that return is guaranteed, guaranteed, guaranteed.  Plus, the NW chart now has this crazy hockey stick look to it--golly, it it sure getting steep to the right without that mortgage drag, even with a flat market!   

I am rooting for all of you mortgage burners!  GO FOR IT!   

This sums up our feelings so well! We are 4 years away from paying it off (max - hopefully earlier), and I can't wait to get it done.

dandypandys

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Re: Mortgage Payoff Club!!
« Reply #795 on: April 01, 2016, 05:21:01 PM »
$27, 116 to go!!!!! So Exciting.

theblackdahlia

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Re: Mortgage Payoff Club!!
« Reply #796 on: April 04, 2016, 10:27:50 AM »
$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 :)

That is my plan too. Ah, part-time. 86k left...hopefully it will be paid off in 5 years.

SAfAmBrit

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Re: Mortgage Payoff Club!!
« Reply #797 on: April 04, 2016, 11:21:13 AM »

Principal paid off so far

2012 - $3415
2013 - $3994
2014 - $8483
2015 - $38412 (yup got rid of all the debt and $10 000 windfall not expected)
2016 - $22724 so far

3/1 Remaining balance $87322. Projected pay off date 09/09/2017 - SO 51st birthday.

4/1 Remaining balance $81837
« Last Edit: April 04, 2016, 11:22:54 AM by SAfAmBrit »

PFHC

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Re: Mortgage Payoff Club!!
« Reply #798 on: April 04, 2016, 03:22:55 PM »
Going to join the fun. :)

Balance is $126,942.

Been paying our full mortgage payment biweekly, (I.e. making 13 extra payments a year) until we decided to remodel our kitchen. We're currently rebuilding our savings, then plan to quadruple the mortgage. Hopefully we can start that in May.

I'll be posting our balance monthly.

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #799 on: April 04, 2016, 06:50:16 PM »
Anyone have projects planned for when they pay off the house?

Kind of struggling with this, actually. Our house is great, but there are some updates we want. Some we'll do cheap, some we won't. On the one hand we won't have a mortgage, and we purposely waited until we were paid off to do some upgrades.

On the other hand, it seems weird not to take full advantage of no mortgage land by dumping money into index funds or real estate. Opportunity cost is the issue I'm struggling with, I guess.

I'm planning to reward myself with some updates once my mortgage is paid off. Not a major addition or anything, but there are a couple doors that could use replacing, maybe some shutters instead of blinds.