Author Topic: Mortgage Payoff Club!!  (Read 461222 times)

Megs193

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Re: Mortgage Payoff Club!!
« Reply #1650 on: June 09, 2018, 09:00:16 AM »
Today we celebrate one year since we wired the proceeds to payoff our house. We have no regrets about our decision and love knowing that even a sudden long-term job loss would not put us at risk of losing our house. Thereís something cool about knowing we fully own every little bit of flooring, sheetrock, granite, roofing, etc. in this structure we call home.

I love this!  This is exactly how I feel. I know we could make more money in the market but knowing we have zero debt and everything we own is 100% ours is worth it to me. Our mortgage makes up a large percentage of our expenses as well so a drastic decrease in our expenses prior to our children going to colllege is also appealing.

mrmoonymartian

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Re: Mortgage Payoff Club!!
« Reply #1651 on: June 10, 2018, 04:02:39 AM »
I'm in. $100k left and aiming to get it near zero by early 2020, while continuing to max out my tax-advantaged account.

Have had moments of temptation to divert more from the mortgage towards a full-tax account, but being in Australia means paying it down makes more sense for various reasons.

I'm not planning to make the final payment until I have to though. If the markets crash I can redraw and take advantage with some low cost, no doc, un-callable leverage.

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1652 on: June 10, 2018, 06:33:55 AM »
@iluvsbeach,   Congrats on paying yours off!  And great point about the closing drama I might cause.   After 3+ yrs of testifying on this board, saving and encouraging to get to this point and the emotional desire to just be done, Iím going to be pragmatic and save the bonus and call the mortgage payoff goal met as soon as we sign at the closing table.

Still gonna be nice to get 90+% of the proceeds back in that check.  The last paid-off house we sold, 2  bankers came out of their offices when I deposited it to sell me financial products and so called ďPremium BankingĒ (with ďpremium feesĒ that come with such financial garbage).   

Alfred J Quack

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Re: Mortgage Payoff Club!!
« Reply #1653 on: June 10, 2018, 01:50:56 PM »
Yoo-hoo, one mortgage paid off. 120k in just over 6 years! Only downside is that we opened a second mortgage to fund some improvements (changing the boiler for an electronic geyser, replacing the central heating with a heatpump).
On the plus side the new mortgage is at 1.65 percent with only one year fixed. Target payoff date is end 2019, this way I don't have to withdraw from my investments.

Zola.

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Re: Mortgage Payoff Club!!
« Reply #1654 on: June 14, 2018, 05:29:55 AM »
We are 3 years into a 25 year term, started at £130,050 after a large deposit, and now down to £115,000. A long way to go, but once we get that number into the five figure club, oh baby...

I could go harder at the overpayments but I am putting in a fair amount into investments. We have our first child who will be born imminently, which will definitely pause the overpayments as my wife will be off work for a year!

Megs193

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Re: Mortgage Payoff Club!!
« Reply #1655 on: June 14, 2018, 08:54:05 AM »
So far for the month of June we have managed to put an extra 7k towards the mortgage. My first post in this thread was April 3rd of this year and my mortgage balance was $497k.  Today it is $477k so we have paid of 20k in 3 months. My goal by the end of the 2018 is to be at 440k.  My oldest child will start college in 2027 so my original goal was to pay it off by then but I think we will beat that goal by a few years.

couponvan

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Re: Mortgage Payoff Club!!
« Reply #1656 on: June 14, 2018, 09:51:31 AM »
Interest rates ticked up another .25%. I am bummed because I may be in the getting a mortgage club again soon.  My current mortgage is at 2.625%.  I'm not looking forward to higher rates. I guess it would make the payoff decision easier.

Livethedream

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Re: Mortgage Payoff Club!!
« Reply #1657 on: June 15, 2018, 07:56:35 AM »
Wanted to say keep up the good work everyone! Excited to announce our final payment cleared this morning!


Trifele

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Re: Mortgage Payoff Club!!
« Reply #1658 on: June 15, 2018, 08:00:21 AM »
Wooo Hooo!!!  Congrats @Livethedream !

iluvzbeach

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Re: Mortgage Payoff Club!!
« Reply #1659 on: June 15, 2018, 08:21:23 AM »
Congratulations, @Livethedream

What a great feeling!

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1660 on: June 16, 2018, 05:12:14 AM »
@Livethedream,   Awesomeness!

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #1661 on: June 16, 2018, 10:28:48 AM »
Congrats @Livethedream   That's Awesome!

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #1662 on: June 17, 2018, 09:45:47 AM »
Congrats

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #1663 on: June 22, 2018, 12:35:33 PM »
@Livethedream , you are living MY dream!  Good on you and congratulations.  Did you post how fast you did it? 

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1664 on: June 22, 2018, 01:50:39 PM »
I would just hang on to the money. We paid our house off one year ago today (yay us!) and it took about 6-8 weeks for everything to be processed with the lender as far as getting the note back marked paid and the lien released with the county. If your place were to go under contract quickly, you could end up causing more headache and confusion by having the payoff piece in process, than to just let it ride and go through the normal sales process cycle. Just my two cents.

Edit: typo correction


Doesn't much matter which way you go, the loan processor will be in rush-rush, last minute mode regardless.    If they aren't a forgetful pain-in-the-ass about this topic they'll find another one to screw up.

Unless you figure there will be a cash offer with a closing in a few weeks, it's not going to affect things.

Livethedream

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Re: Mortgage Payoff Club!!
« Reply #1665 on: June 22, 2018, 07:50:30 PM »
@Livethedream , you are living MY dream!  Good on you and congratulations.  Did you post how fast you did it?

Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1666 on: June 27, 2018, 06:34:07 AM »
Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

Wow, the $1,500 figure is impressive!  Our electric alone runs about $1,800, though the northeast does have crazy high electricity rates.  I'm envious of your tiny home maintenance/utility nut!

dandypandys

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Re: Mortgage Payoff Club!!
« Reply #1667 on: June 27, 2018, 06:41:25 AM »
@Livethedream , you are living MY dream!  Good on you and congratulations.  Did you post how fast you did it?

Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

woohoo well done!
We are about the same maybe-- how much is your property tax a year? ours is 200-- which is rad!

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1668 on: June 27, 2018, 06:56:32 AM »
woohoo well done!
We are about the same maybe-- how much is your property tax a year? ours is 200-- which is rad!

What the WHAT?  There is an ancient, beat-up trailer down the road from me, and its property taxes are around 10x what you pay.  :D

dandypandys

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Re: Mortgage Payoff Club!!
« Reply #1669 on: June 27, 2018, 07:14:12 AM »
In 2005 when i bought the condo for 140k it was 2000 taxes a year.
Then the crash came- it went allllllllll the way down.
My Real Estate Agent said that they cannot put it up more than 3% a year now until someone else buys it again. Didn't know that.
My condo is still only worth $100k though. Decided not to sell again phew- every 2 years It seems I get the moving bug and revisit the option.
I am excited to keep saving for early retirement.

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1670 on: June 28, 2018, 07:03:02 AM »
@Livethedream , you are living MY dream!  Good on you and congratulations.  Did you post how fast you did it?

Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

Please don't judge me, but my first thought when I read this is "what kind of mustachian feels like zhe needs to own the whole solar system?!?"

couponvan

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Re: Mortgage Payoff Club!!
« Reply #1671 on: June 28, 2018, 08:08:55 AM »
Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

Wow, the $1,500 figure is impressive!  Our electric alone runs about $1,800, though the northeast does have crazy high electricity rates.  I'm envious of your tiny home maintenance/utility nut!

Wait - WHAT....$1,800 for electric??? I am moving to the VA area - please tell me that is per year and not per month or I am going to have an apoplectic fit.....

Car Jack

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Re: Mortgage Payoff Club!!
« Reply #1672 on: June 28, 2018, 08:15:55 AM »
Virginia is not the Northeast.  I lived in Virginia for grad school and electricity was half the rate we pay in Massachusetts.

couponvan

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Re: Mortgage Payoff Club!!
« Reply #1673 on: June 28, 2018, 12:15:59 PM »
Virginia is not the Northeast.  I lived in Virginia for grad school and electricity was half the rate we pay in Massachusetts.

Nice.  You're right it's more East than Northeast.  I will be happy paying the same rates as IL when the property taxes are less by 2/3.  If they were just going to get it back in the utilities, I was going to be really annoyed.

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1674 on: June 28, 2018, 12:34:53 PM »
Virginia is not the Northeast.  I lived in Virginia for grad school and electricity was half the rate we pay in Massachusetts.

Nice.  You're right it's more East than Northeast.  I will be happy paying the same rates as IL when the property taxes are less by 2/3.  If they were just going to get it back in the utilities, I was going to be really annoyed.

VA is part of the mid-Atlantic region, and nearly part of the Southeast!  :D

But yeah, the electricity rates in New England are obscene.  On par with Alaska, higher than CA in many cases, and really only Hawaii is worse.

Livethedream

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Re: Mortgage Payoff Club!!
« Reply #1675 on: June 28, 2018, 12:48:14 PM »
@Livethedream , you are living MY dream!  Good on you and congratulations.  Did you post how fast you did it?

Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

woohoo well done!
We are about the same maybe-- how much is your property tax a year? ours is 200-- which is rad!

$200!? Thatís crazy.

Ours is about $3800 a year.

Megs193

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Re: Mortgage Payoff Club!!
« Reply #1676 on: June 28, 2018, 01:25:29 PM »
My husband got paid 3 times in June so I was able to put an extra 10k towards the mortgage this month so the balance is at 474k.  Iím guessing we wonít be able to pay any extra towards the mortgage next month because I just paid 6k for summer camp and purchased flights to see family in February but at least I made a nice payment this month.

Plina

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Re: Mortgage Payoff Club!!
« Reply #1677 on: June 30, 2018, 02:55:16 AM »
My husband got paid 3 times in June so I was able to put an extra 10k towards the mortgage this month so the balance is at 474k.  Iím guessing we wonít be able to pay any extra towards the mortgage next month because I just paid 6k for summer camp and purchased flights to see family in February but at least I made a nice payment this month.

Out of curiosity, what kind of camp costs 6k?

Megs193

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Re: Mortgage Payoff Club!!
« Reply #1678 on: June 30, 2018, 07:01:19 AM »
My husband got paid 3 times in June so I was able to put an extra 10k towards the mortgage this month so the balance is at 474k.  Iím guessing we wonít be able to pay any extra towards the mortgage next month because I just paid 6k for summer camp and purchased flights to see family in February but at least I made a nice payment this month.

Out of curiosity, what kind of camp costs 6k?

Itís for 2 kids so itís 3k per kid but that was my reaction when I first found out how much camp cost. Unfortunately that is the going rate for camp in our area.  I actually wanted to hire a sitter on days I work over the summer and save some money but my husband went to camp and feels like it is worth it. My husband is not mustachian so I pick my battles.

mrmoonymartian

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Re: Mortgage Payoff Club!!
« Reply #1679 on: July 03, 2018, 02:27:50 AM »
@Livethedream , you are living MY dream!  Good on you and congratulations.  Did you post how fast you did it?

Just under 2 years, started at $187k. This includes paid for solar system as well. So all utilities water, sewer, power, garbage, and home owners insurance comes out to $1500 yearly + property taxes. This was part of our plan, building an efficient home with low maintenance, operating, and insurance costs.

Please don't judge me, but my first thought when I read this is "what kind of mustachian feels like she needs to own the whole solar system?!?"
Ahahaha! Love this.

ScottsdaleSaver

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Re: Mortgage Payoff Club!!
« Reply #1680 on: July 03, 2018, 01:32:51 PM »
June 2018 - $217K and I'm writing another check to principal for $5K tonight. The pay for grant work isn't in yet and the promotion happened and the higher pay rate kicks in this week (yay!). We're hoping to break the $200K mark by the end of the summer.

March 2018 - $227K  We made some good headway over the last quarter thanks to my bonus. We anticipate a couple more windfalls in the next quarter - grant work for my husband - & perhaps even a large promotion which would really speed things up. Send some good juju our way!

Jumping over here from a different mortgage payoff thread that never took off. We started the path to early payoff in earnest this June with a (free) refinance. We're on a 15-year mortgage at 3.25%, but I want to knock this thing out in 5.

Big picture - I want to time the mortgage payoff with my escape from corporate life. Our investments are where I'd like it to be at this point. We'll continue to max out our tax advantaged accounts, but everything after that is going towards this.

June 2017 - $254K
July 2017 - $251K
August 2017 - $248K
Sept 2017 - $245K
Oct 2017 - $244K
Nov 2017 - $241K
Dec - 2017 - $237K

CheapScholar

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Re: Mortgage Payoff Club!!
« Reply #1681 on: July 04, 2018, 06:07:33 PM »
We just had a small windfall ($7,500 from in-laws) and put it towards the principal.  Brings us to $92,500. 

Somewhat amusing, the $7,500 gift was given to us by DWís parents because my BIL got married, moved out and finally bought a house at 33.  In-laws could tell he needed the cash infusion and so my wife got an equal gift.  BIL purchased a 450K house and they only put down about 10%.  So theyíre paying PMI, too.  I wouldnít be surprised if they tapped equity at some point.  Meanwhile, we are on track to own our 215K (we purchased for 169K four years ago) home within a few years.

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #1682 on: July 04, 2018, 06:45:38 PM »
May update.....$59,575.... waiting patiently for husbands bonus to come in.  21 more weeks at max until payoff - hopefully less.

This week's payment puts us at $48,969, finally broke free of the $50's!  The most exciting news is that my husbands bonus this year is going to be his best ever....right around the $35,000 for take home $$.  This means our plan is 100% on track.  This additional bonus payment will drop the mortgage to the $12,000 mark and then we will see if we decide to wipe it out, or let it zero out by Sept. 30.  Either way, feeling very grateful to be almost done!

Trifele

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Re: Mortgage Payoff Club!!
« Reply #1683 on: July 05, 2018, 05:30:14 AM »
May update.....$59,575.... waiting patiently for husbands bonus to come in.  21 more weeks at max until payoff - hopefully less.

This week's payment puts us at $48,969, finally broke free of the $50's!  The most exciting news is that my husbands bonus this year is going to be his best ever....right around the $35,000 for take home $$.  This means our plan is 100% on track.  This additional bonus payment will drop the mortgage to the $12,000 mark and then we will see if we decide to wipe it out, or let it zero out by Sept. 30.  Either way, feeling very grateful to be almost done!

Congrats @frizzywhiskers ! You are in the home stretch!

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1684 on: July 05, 2018, 12:41:38 PM »
End of June update...   Just around $43K.   And pitching in another ~$1K this next pay period just to hopefully be "sub-40K" at the closing table (which is likely to be higher than the car loan balance of whomever buys our place)...  Strange how the mental game works at this stage... Crossing each $10K interval is such a win!

Finntastic

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Re: Mortgage Payoff Club!!
« Reply #1685 on: July 05, 2018, 09:06:22 PM »
5/2018: $105,297
6/2018: $97,842

Interest rate 6.25%

Goal to be paid by: 10/10/2020

abpa

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Re: Mortgage Payoff Club!!
« Reply #1686 on: July 09, 2018, 07:11:34 AM »
Our current balance is $126,885 with 4% interest.  Today I adjusted my 403b contribution to max it out, am maxing out my IRA and throwing everything else at the mortgage.  I'd love to pay it all off by my 50th birthday in Dec 2020.  This means I'll need to take on some sort of side gig (ER shifts, maybe?) in order to kill the mortgage. 

Megs193

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Re: Mortgage Payoff Club!!
« Reply #1687 on: July 09, 2018, 07:17:27 PM »
My husband and I have had too much cash on hand for awhile. After doing a case study we decided to put $45,000 towards the mortgage.  I made the transfer but am still waiting for the transaction to go through. Our new balance will be just under $427k.  Our original plan was to pay off the mortgage by the time my oldest starts college which would be a little over 9 years but now Iím hoping we can do it even sooner.  Our mortgage makes up over half of our monthly spending so reducing that to taxes and insurance only would make a huge difference in how much income we need per month after retirement.

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1688 on: July 10, 2018, 08:57:48 AM »
That is a lot of house.

FIreDrill

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Re: Mortgage Payoff Club!!
« Reply #1689 on: July 13, 2018, 03:05:57 PM »
My husband and I have had too much cash on hand for awhile. After doing a case study we decided to put $45,000 towards the mortgage.  I made the transfer but am still waiting for the transaction to go through. Our new balance will be just under $427k.  Our original plan was to pay off the mortgage by the time my oldest starts college which would be a little over 9 years but now Iím hoping we can do it even sooner.  Our mortgage makes up over half of our monthly spending so reducing that to taxes and insurance only would make a huge difference in how much income we need per month after retirement.

I'm in a similar situation as you.  Just move to a HCOL area and our mortgage accounts for about 50-60% of our monthly expenses.  Although I'm not in the payoff club it's interesting to see someone in a very similar situation as mine attacking the mortgage.  Maybe someday we will pay it off early but for now, putting the money in investments makes us feel more comfortable.


FIreDrill

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Re: Mortgage Payoff Club!!
« Reply #1690 on: July 13, 2018, 03:21:12 PM »
That is a lot of house debt.

Fixed that for you ;)

Depending on where they live that could be a very modest house or even a decent apartment/condo.

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1691 on: July 13, 2018, 10:35:44 PM »
Virginia is not the Northeast. 

Basic rule for US Geography -- if the state contained the capital of the Confederacy, it is not "Northern".   Or, for that matter, if it joined the Confederacy or wanted to.

Megs193

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Re: Mortgage Payoff Club!!
« Reply #1692 on: July 14, 2018, 05:32:10 AM »
That is a lot of house.

We live in a HCOL area but it is a lot of house. I discovered MMM while it was in the process of being built. We hated moving and we love the house because we designed every part of it so our plan is to pay it off as quickly as possible.  We plan on moving to a LCOL area for retirement but unfortunately my DH has no interest in retiring so that wonít be for another 20+ years.

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #1693 on: July 14, 2018, 11:38:08 AM »
May update.....$59,575.... waiting patiently for husbands bonus to come in.  21 more weeks at max until payoff - hopefully less.

This week's payment puts us at $48,969, finally broke free of the $50's!  The most exciting news is that my husbands bonus this year is going to be his best ever....right around the $35,000 for take home $$.  This means our plan is 100% on track.  This additional bonus payment will drop the mortgage to the $12,000 mark and then we will see if we decide to wipe it out, or let it zero out by Sept. 30.  Either way, feeling very grateful to be almost done!

Bonus came in as expected!  Whoop!  Down to $12,100 this week once the payment goes through.  The end is near.......

redbirdfan

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Re: Mortgage Payoff Club!!
« Reply #1694 on: July 14, 2018, 04:54:24 PM »
I'm officially pledging to stop going back and forth between investing and paying off my mortgage.  I'm committing to paying off my mortgage.  I know that market returns may be higher, but I want the freedom of being debt free and I want to free up space for eventual Roth conversion ladders.  I'm using a HELOC to help me.  The HELOC cost me $175 for the condo questionnaire, but there were no closing costs, appraisal fees or any other fees.   This process starts Monday!  The plan is to apply most of the HELOC amount to the mortgage, deposit all extra funds and income into the HELOC and repeat when the balance gets back to the original amount.  When I make the lump sum payments to the mortgage, I will recast the mortgage.  This will reduce my required monthly payments so the difference will go back to the HELOC.  There is a $100 fee per recast with no limits on the amount of recasts possible.  I did not pay for any software to set anything up.  It's just me my spreadsheets, Mint and Personal Capital.  We'll see how this goes.     

Starting Mortgage Balance: $182,515
Starting HELOC funds available: $56,000
HELOC intro rate for the next 12 months: 2.74%
Mortgage Interest rate: 3.99%
HELOC rate after 12 months = Prime rate -.25 with a green energy purchase

indentured4now

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Re: Mortgage Payoff Club!!
« Reply #1695 on: July 14, 2018, 08:41:42 PM »
@Frizzy...   GO, PAYOFF, WIN!!    Then enjoy every dollar working for you instead of for the bank!

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #1696 on: July 14, 2018, 09:41:23 PM »
@Frizzy...   GO, PAYOFF, WIN!!    Then enjoy every dollar working for you instead of for the bank!

Yes - thank you! :-) It's very exciting!  We will likely pay off the final balance within the next month or so.  Need to inquire if there is any penalty involved in paying off the balance 2 months before the term is up! 

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1697 on: July 16, 2018, 09:22:34 AM »
I'm officially pledging to stop going back and forth between investing and paying off my mortgage.  I'm committing to paying off my mortgage.  I know that market returns may be higher, but I want the freedom of being debt free and I want to free up space for eventual Roth conversion ladders.  I'm using a HELOC to help me.  The HELOC cost me $175 for the condo questionnaire, but there were no closing costs, appraisal fees or any other fees.   This process starts Monday!  The plan is to apply most of the HELOC amount to the mortgage, deposit all extra funds and income into the HELOC and repeat when the balance gets back to the original amount.  When I make the lump sum payments to the mortgage, I will recast the mortgage.  This will reduce my required monthly payments so the difference will go back to the HELOC.  There is a $100 fee per recast with no limits on the amount of recasts possible.  I did not pay for any software to set anything up.  It's just me my spreadsheets, Mint and Personal Capital.  We'll see how this goes.     

Starting Mortgage Balance: $182,515
Starting HELOC funds available: $56,000
HELOC intro rate for the next 12 months: 2.74%
Mortgage Interest rate: 3.99%
HELOC rate after 12 months = Prime rate -.25 with a green energy purchase

That's a nice intro rate on your HELOC. I had heard about this HELOC method of paying down your mortgage, but I didn't consider it seriously because my mortgage APR was 3.0%. The float of the HELOC should help you make some progress, especially with that low teaser rate.

Telecaster

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Re: Mortgage Payoff Club!!
« Reply #1698 on: July 16, 2018, 05:14:10 PM »
I'm officially pledging to stop going back and forth between investing and paying off my mortgage.  I'm committing to paying off my mortgage.  I know that market returns may be higher, but I want the freedom of being debt free and I want to free up space for eventual Roth conversion ladders.  I'm using a HELOC to help me.  The HELOC cost me $175 for the condo questionnaire, but there were no closing costs, appraisal fees or any other fees.   This process starts Monday!  The plan is to apply most of the HELOC amount to the mortgage, deposit all extra funds and income into the HELOC and repeat when the balance gets back to the original amount.  When I make the lump sum payments to the mortgage, I will recast the mortgage.  This will reduce my required monthly payments so the difference will go back to the HELOC.  There is a $100 fee per recast with no limits on the amount of recasts possible.  I did not pay for any software to set anything up.  It's just me my spreadsheets, Mint and Personal Capital.  We'll see how this goes.     

Starting Mortgage Balance: $182,515
Starting HELOC funds available: $56,000
HELOC intro rate for the next 12 months: 2.74%
Mortgage Interest rate: 3.99%
HELOC rate after 12 months = Prime rate -.25 with a green energy purchase

Someone mentioned this a while back, so I looked into and I flat don't see how it speeds up paying off the mortgage any more than simply making additional payments.   Is there something I'm missing?

redbirdfan

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Re: Mortgage Payoff Club!!
« Reply #1699 on: July 16, 2018, 08:25:23 PM »
Quote
Someone mentioned this a while back, so I looked into and I flat don't see how it speeds up paying off the mortgage any more than simply making additional payments.   Is there something I'm missing?

There's nothing that you're missing for the most part.  The HELOC just allows for large lump sum payments that put you further down the amortization schedule so more of your subsequent payments is applied to the principal.  There is also no way I would put all disposable income towards my mortgage without the safety net of the HELOC for liquidity.  The HELOC allowed me to pay a large amount (for me) towards the principal at once.  I wouldn't hit that amount of principal in extra payments anywhere near as quickly.  The HELOC method works as a self-inflicted hair on fire debt that forces to me to focus on paying off the mortgage as soon as possible.  Left to my own devices my analysis paralysis caused me to end up with funds just sitting in checking and savings accounts waiting for investment options on which I never pulled the trigger.  I finally decided to get off the fence.  The HELOC makes financial sense, provides a liquidity buffer and most importantly forces me to concentrate on paying off the mortgage.  For me it's more of a personal behavioral finance crutch than a magic bullet.