Mortgage Payoff Club!!

[Money Badger]

Thanks @megs and birdman!   You've got this and look forward to your victory laps here soon!

[pdxmonkey]

Congratulations. Welcome to the club.

[arob54600]

Hey y'all!
I'm new to the thread.
We have had our mortgage for a year and a half and it currently has a balance of 129900.
Looking forward to being aggressive!

[TexasRunner]

Hey y'all!
I'm new to the thread.
We have had our mortgage for a year and a half and it currently has a balance of 129900.
Looking forward to being aggressive!

Whats the current interest rate?

[arob54600]

Hey y'all!
I'm new to the thread.
We have had our mortgage for a year and a half and it currently has a balance of 129900.
Looking forward to being aggressive!

Whats the current interest rate?

Hey Texas,
Our interest rate is 4.5%. This is a purely emotional decision. I am well aware of the math behind keeping a mortgage for as long as possible and investing as much as possible instead of making extra payments. A year ago Boarder42 really convinced me that it's the way to go. But at the end of the day, we will have soo much more peace of mind, paying off our home. Even if we pay hard and get aggressive until PMI is gone and switch right back over to building our investments. Right now, we are focused on building net worth and there is more than one way to get it done :)

[TexasRunner]

Hey y'all!
I'm new to the thread.
We have had our mortgage for a year and a half and it currently has a balance of 129900.
Looking forward to being aggressive!

Whats the current interest rate?

Hey Texas,
Our interest rate is 4.5%. This is a purely emotional decision. I am well aware of the math behind keeping a mortgage for as long as possible and investing as much as possible instead of making extra payments. A year ago Boarder42 really convinced me that it's the way to go. But at the end of the day, we will have soo much more peace of mind, paying off our home. Even if we pay hard and get aggressive until PMI is gone and switch right back over to building our investments. Right now, we are focused on building net worth and there is more than one way to get it done :)

As long as you understand the choice and *potential* consequences, you'll get no problems out of me.  ;)

Congrats on getting rich slightly differently, lol.

[Money Badger]

Welcome @arob...   And "aggressive" debt reduction is good...   But laser-focused, make your friends question your sanity at dinner parties, "I dug out my change including the nasty bits in the sofa and sent it all in a box to the mortgage company towards principal" focus is even better!   :)

Seriously, it helps to lay out your goals and planned number of months to kill $129K here.   There's no shame if life intervenes, but holding yourself interim goals that your significant other is on board with and that you put in writing will get ya there.   And some support from this forum will help through the rough spots along the way.

[Trifle]

Now at $29,600. Have resumed extra payments now that I am working a little more again after a difficult last half of 2018. Little by little :)

I have found that trying to pay off the mortgage motivates me to scrimp and save far more than just "adding to the stash." We have a high NW and no debt aside from this mortgage.

We don't plan to fully RE as we both like our jobs, but would like to reduce our monthly cash requirements. Getting rid of our mortgage payments would help a lot with that. Also the security of knowing that it is 100% ours.

Goal is still end of 2019. Will have to push, but I am motivated!

Welcome back @allsummerlong !  2019 is going to be one fine year for you. 

[Alfred J Quack]

Just to toot my own horn because nobody in my friends and family circle is even remotely interested: Just paid down the mortgage to the last €0,01. Took us 7 years and 1 month, with 2 kids born and a 17k increase last year to replace our heating with an environmentally friendly heatpump :)
The 17k increase was effectively a new (HOLE type) mortgage but because of the lower interest (1.65%) we chose that route with the agreement between ourselves to have both mortgages payed off within the year, which we did with 2 months to spare!

Now, I can sleep easy and rebuild my stache to an acceptable level :)

[Nederstash]

Just to toot my own horn because nobody in my friends and family circle is even remotely interested: Just paid down the mortgage to the last €0,01. Took us 7 years and 1 month, with 2 kids born and a 17k increase last year to replace our heating with an environmentally friendly heatpump :)
The 17k increase was effectively a new (HOLE type) mortgage but because of the lower interest (1.65%) we chose that route with the agreement between ourselves to have both mortgages payed off within the year, which we did with 2 months to spare!

Now, I can sleep easy and rebuild my stache to an acceptable level :)

That's super cool!!! Well done! Are there certain advantages to keeping the mortgage at 1 cent? As a fellow Dutchie with similar aspirations I'm wondering about that.

[Alfred J Quack]

Just to toot my own horn because nobody in my friends and family circle is even remotely interested: Just paid down the mortgage to the last €0,01. Took us 7 years and 1 month, with 2 kids born and a 17k increase last year to replace our heating with an environmentally friendly heatpump :)
The 17k increase was effectively a new (HOLE type) mortgage but because of the lower interest (1.65%) we chose that route with the agreement between ourselves to have both mortgages payed off within the year, which we did with 2 months to spare!

Now, I can sleep easy and rebuild my stache to an acceptable level :)

That's super cool!!! Well done! Are there certain advantages to keeping the mortgage at 1 cent? As a fellow Dutchie with similar aspirations I'm wondering about that.

No, Just that I could pay via Ideal rather than wait for a letter. The next  monthly patent will finish off the rest and they will return the excess.

[TomSelleckJR]

We're down to 87k.

We are targeting payoff right around the end of 2019.

UPDATE - 02/28/19
We are down to 65k.  Barring anything unforeseen, I see no reason why we won't meet our 2019 mortgage payoff goal.  :-)

[Car Jack]

March first.  My 33rd anniversary.  I was thinking on my way to work how I had to write no check to the mortgage company and could use that $1500 or so to prop up my Ally account in prep for upcoming tuition payments.  Funny how every month, I no longer have this payment to make and can use the money for investing or getting ready for a big expense or fix the furnace or do whatever I want.

This is the post payment preview for you all.  I have plenty of investments as well, mostly having been made post payment.

[Askel]

My name is Askel and it's been 4 months since I last made a mortgage payment. 

At first I felt kind of ambivalent about it, but 4 months out now I'm incredibly glad I paid that thing off. 

There's a lot of very vocal advocates on this forum for keeping low interest rate mortgages as long as possible. You should definitely run the numbers for your situation and consider their points. 

But I'm glad I didn't go that route.  I've had an investment portfolio balance greater than my mortgage balance for many years.  It's just not the same as having a paid off mortgage. 

It's more than a warm fuzzy feeling of comfort- having that chunk of cash freed up every month and a place to hang your hat no matter what opens up a world of opportunity.  I'm now free to consider career and personal goals that might have risked my home before. 

Keep plugging along folks.  I hope you get out of it what I have. 

[Megs193]

2019 started off with some unexpected expenses so in January I wasn’t able to put any extra money toward the mortgage. Thankfully in February I was able to pay an extra $5,000. We are down to $279,000 and still on track to pay it off by the end of 2020 assuming we don’t miss any other months!

[Alfred J Quack]

March first.  My 33rd anniversary.  I was thinking on my way to work how I had to write no check to the mortgage company and could use that $1500 or so to prop up my Ally account in prep for upcoming tuition payments.  Funny how every month, I no longer have this payment to make and can use the money for investing or getting ready for a big expense or fix the furnace or do whatever I want.

This is the post payment preview for you all.  I have plenty of investments as well, mostly having been made post payment.

This feels so good, since my monthly payment had dwindled with each extra payment I already know the feeling.

Also sent the required details to the notary office to scrap the mortgage from the public registry. In a few days I'll officially and administratively mortgage free!

[BlueHouse]

March first.  My 33rd anniversary.  I was thinking on my way to work how I had to write no check to the mortgage company and could use that $1500 or so to prop up my Ally account in prep for upcoming tuition payments.  Funny how every month, I no longer have this payment to make and can use the money for investing or getting ready for a big expense or fix the furnace or do whatever I want.

This is the post payment preview for you all.  I have plenty of investments as well, mostly having been made post payment.

This feels so good, since my monthly payment had dwindled with each extra payment I already know the feeling.

Also sent the required details to the notary office to scrap the mortgage from the public registry. In a few days I'll officially and administratively mortgage free!

What do you have to do after the mortgage is paid?  I'm still a few years away, but I'm wondering if I should schedule my last payment for a time when I'm not busy with other things?  Jan - May are always super-busy for me, so should I schedule a final payment for mid-year or later?  Or is it simply sending in a notice somewhere?

I know I'll still have to pay taxes, but those will be auto payments.  No prob there.

[Trifle]

March first.  My 33rd anniversary.  I was thinking on my way to work how I had to write no check to the mortgage company and could use that $1500 or so to prop up my Ally account in prep for upcoming tuition payments.  Funny how every month, I no longer have this payment to make and can use the money for investing or getting ready for a big expense or fix the furnace or do whatever I want.

This is the post payment preview for you all.  I have plenty of investments as well, mostly having been made post payment.

This feels so good, since my monthly payment had dwindled with each extra payment I already know the feeling.

Also sent the required details to the notary office to scrap the mortgage from the public registry. In a few days I'll officially and administratively mortgage free!

What do you have to do after the mortgage is paid?  I'm still a few years away, but I'm wondering if I should schedule my last payment for a time when I'm not busy with other things?  Jan - May are always super-busy for me, so should I schedule a final payment for mid-year or later?  Or is it simply sending in a notice somewhere?

I know I'll still have to pay taxes, but those will be auto payments.  No prob there.

Where I live, most people don't have to do anything when they pay a mortgage off.  It's customary for the banks to send a Notice of Satisfaction to the county Register of Deeds, and the borrower doesn't need to do anything.  You can probably check the procedure on your county's website, and/or ask your bank if they're going to send the paperwork in.   

[Alfred J Quack]

March first.  My 33rd anniversary.  I was thinking on my way to work how I had to write no check to the mortgage company and could use that $1500 or so to prop up my Ally account in prep for upcoming tuition payments.  Funny how every month, I no longer have this payment to make and can use the money for investing or getting ready for a big expense or fix the furnace or do whatever I want.

This is the post payment preview for you all.  I have plenty of investments as well, mostly having been made post payment.

This feels so good, since my monthly payment had dwindled with each extra payment I already know the feeling.

Also sent the required details to the notary office to scrap the mortgage from the public registry. In a few days I'll officially and administratively mortgage free!

What do you have to do after the mortgage is paid?  I'm still a few years away, but I'm wondering if I should schedule my last payment for a time when I'm not busy with other things?  Jan - May are always super-busy for me, so should I schedule a final payment for mid-year or later?  Or is it simply sending in a notice somewhere?

I know I'll still have to pay taxes, but those will be auto payments.  No prob there.

In the Netherlands both the ownership and the mortgage  are registered by the notary office. In the past it appearently happened that one owner sold to several parties while also still having a mortgage. Interesting way toake money :P

Scrapping the mortgage at the notary has the advantage that I can now buy a second house more easily because I don't have to explain or include the first mortgage which means less risk for the bank.
Taxes are also same as before, no difference there unfortunately.

[ScottsdaleSaver]

A larger than expected work bonus helped us knock a big chunk off this quarter. Our goal for this year is to get below $100K and it looks like that is well within reach based on our budget.

We just crossed $600K in investments, so when we get this bad boy paid off, we'll be lean FI based on our spending on essentials. We're not looking to completely drop out of the workforce, but I want to go part time, plus having that peace of mind will be huge.

3/2019 - $153K
12/2018 - $187K
9/2018 - $196K
6/2018 - $217K
3/2018 - $227K
12/2017 - $237K
9/2017 - $245K
6/2017 - $245K

[Trifle]

A larger than expected work bonus helped us knock a big chunk off this quarter. Our goal for this year is to get below $100K and it looks like that is well within reach based on our budget.

We just crossed $600K in investments, so when we get this bad boy paid off, we'll be lean FI based on our spending on essentials. We're not looking to completely drop out of the workforce, but I want to go part time, plus having that peace of mind will be huge.

Niiiice!!!   Your numbers are very similar to what ours were, @ScottsdaleSaver -- we were investing and paying off the mortgage at the same time, and we timed the mortgage payoff for shortly before I FIREd.   It's awesome to have options.   

[ScottsdaleSaver]

A larger than expected work bonus helped us knock a big chunk off this quarter. Our goal for this year is to get below $100K and it looks like that is well within reach based on our budget.

We just crossed $600K in investments, so when we get this bad boy paid off, we'll be lean FI based on our spending on essentials. We're not looking to completely drop out of the workforce, but I want to go part time, plus having that peace of mind will be huge.

Niiiice!!!   Your numbers are very similar to what ours were, @ScottsdaleSaver -- we were investing and paying off the mortgage at the same time, and we timed the mortgage payoff for shortly before I FIREd.   It's awesome to have options.   

That's great to hear, Trifele! I know all the arguments for keeping the mortgage, but I want it gone before we make any big moves. We're still maxing out tax-advantaged accounts, but everything else is going towards the mortgage. How long have you been FIREd now?

[Trifle]

How long have you been FIREd now?

Originally I was planning for 2018, but it was pushed back to January 31 2019.  So it's been exactly two months, and it is even better than I dreamed.   Fabulous!

[Megs193]

I can’t tell anyone in real life so I had to come on here and share. My husband and I just made a payment of $140,000 to our mortgage!  We have had way too much in saving for years. We decided to either put it towards the mortgage or invest it since it wasn’t helping us sitting in a savings account.  We eventually made the decision to put it towards the mortgage because with that money we will hopefully be mortgage free by the end of 2019.  Our balance as of today is $130,000. Our original mortgage was for $720,000 so this feels so close!

[iluvzbeach]

I can’t tell anyone in real life so I had to come on here and share. My husband and I just made a payment of $140,000 to our mortgage!  We have had way too much in saving for years. We decided to either put it towards the mortgage or invest it since it wasn’t helping us sitting in a savings account.  We eventually made the decision to put it towards the mortgage because with that money we will hopefully be mortgage free by the end of 2019.  Our balance as of today is $130,000. Our original mortgage was for $720,000 so this feels so close!

@Megs193 This is awesome. I’ve been reading your updates over time and it’s been great to see your progress. Can’t wait to see your “paid in full” update!

[Money Badger]

@Megs193,   Way to go!   We're pulling for you guys to remove debt from your lives and WIN!   

[Trifle]

Wow @Megs193!  Very impressive!!

[Megs193]

Thanks everyone!  I can’t wait for the day I can finally post that we are mortgage free!

[nnls]

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

[Alfred J Quack]

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

All the little bits help, and in the end you'll have nothing left :)

[Trifle]

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

Niiice @nnls!  I used to love when I could put a big chunk like that toward the mortgage -- very satisfying.

[BlueHouse]

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

Not sure how capital gains taxes work in AU, but in the US, we would caution to be very careful to watch for taxes on those earnings -- especially short term capital gains. 

[nnls]

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

Not sure how capital gains taxes work in AU, but in the US, we would caution to be very careful to watch for taxes on those earnings -- especially short term capital gains.

I've held the shares for over three years and I worked out how much tax and it will be about $1500

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

Niiice @nnls!  I used to love when I could put a big chunk like that toward the mortgage -- very satisfying.

Thanks, it will feel good. I know a lot of people on this forum will think I am stupid for selling shares to put on my mortgage but in Australia mortgage interest rates arent fixed, so while mine is low I want to try and put as much on so I have a head start for when they eventually rise

Mines not paid off, but I just sold about 20k worth of shares to put on my mortgage (shares purchased at around $60 each, sold for $100 each)

All the little bits help, and in the end you'll have nothing left :)

And I cant wait!

[BlueHouse]

I know a lot of people on this forum will think I am stupid for selling shares to put on my mortgage but in Australia mortgage interest rates arent fixed, so while mine is low I want to try and put as much on so I have a head start for when they eventually rise

I think most people here know the pros and cons and this thread is focused on celebrating the accomplishments of those who put more weight on the pros.  Is it the most optimal strategy?  Usually not.  But is it stupid? Never! 

Congratulations!  It's good to feel in control of our biggest liabilities and no one can take that away.  :)

[Steveray7071]

I've had my current mortgage since 6/1/2013 - $235K

1/1/2019 - 191K
4/1/2019 - 178K

Goal is to pay off by 8/1/2020.

[talltexan]

What are you plans for accelerating, Steveray? Bump in income, or a change in how you're handling other financial goals?

[Steveray7071]

What are you plans for accelerating, Steveray? Bump in income, or a change in how you're handling other financial goals?

Actually a little bit of all.. I've recently got a nice bump in income, I'm going to sell some rentals (market is really high in my area, also I don't particularly like managing them), and save a little less in my taxable accounts (currently max out my 401k & IRA).

[TomSelleckJR]

We're down to 87k.

We are targeting payoff right around the end of 2019.

UPDATE - 02/28/19
We are down to 65k.  Barring anything unforeseen, I see no reason why we won't meet our 2019 mortgage payoff goal.  :-)

Update - 4/11/19
Big progress.  We are now down to just under 37k.  It won't be long now.  :-)

[Money Badger]

@SelleckJR,  Just save or sell anything you have to in order to be free!  It just gets better.

[TomSelleckJR]

@SelleckJR,  Just save or sell anything you have to in order to be free!  It just gets better.

Thanks for the encouragement!   We are pushing hard and are selling things as we speak.

I can't wait to join the club!

[esmith2039]

Working towards the payoff club... As of tomorrow when the payment clears we'll owe $38.9k on the mortgage. Started out this year owing $47k.. after I calculated the $2k in interest could of paid the taxes and most of the insurance we started knocking it down. Our house is fairly cheap compared to most. Looking to be paid off at the end of 2020 but could be sooner. While the discussions on reasons not to pay off your mortgage is intriguing we'd want that state of mind it brings.

[Buffaloski Boris]

The stories here are really cool. Still haven’t dived in, but dipping toes in the water. Still have some more optimal investments to make with cash other than equities right now, but maybe later in the year?

[Blindsquirrel]

     Has been a bit over a year since I paid mine off. It is a great feeling whether it is the mathematically optimal thing or not. A paid off crib definitely reduces risk and cash flow needs. :)

[Alfred J Quack]

Jippie!!!

Just got word from the Notary office, the mortgage has been scrapped and I am officially, totally mortgage free!

[couponvan]

Jippie!!!

Just got word from the Notary office, the mortgage has been scrapped and I am officially, totally mortgage free!

Congratulations!!  You are done with payments, and now have some mental breathing room!!

[Alfred J Quack]

Jippie!!!

Just got word from the Notary office, the mortgage has been scrapped and I am officially, totally mortgage free!

Congratulations!!  You are done with payments, and now have some mental breathing room!!

Thank you!!

We were already done for a bit but this is just the paperwork. It could have waited until we sell the house, but it's just a lot more fun to have it done and be able to brag about it ;)

It even took a bit more time than expected because the bank's automated system didn't process the paperwork correctly so the notary office didn't get informed (they also didn't actively monitor it). I gave them a ping, received profuse apologies and it was done 6 weeks later than planned. But, done is done :)

[2sk22]

We just paid off the last few thousand dollars on our mortgage. We bought the house in 1996 at the trough of the market and now 23 years and 2 refinancings later, it's fully paid off. Retirement funds are more than adequate so we decided to just get rid of this - mainly for symbolic value :-) )

[RSG89]

@2sk22 Congrats! We hope to join the club later this month!

[Alfred J Quack]

We just paid off the last few thousand dollars on our mortgage. We bought the house in 1996 at the trough of the market and now 23 years and 2 refinancings later, it's fully paid off. Retirement funds are more than adequate so we decided to just get rid of this - mainly for symbolic value :-) )

Well done, nothing feels better than sleeping in a house without a mortgage :)

[TomSelleckJR]

@2sk22 Congrats! We hope to join the club later this month!

X2!
Nice job 2sk22!

And RSG89, I hope to be joining the club this month myself.  We're so close to freedom that I can taste it!