Do you have a mortgage, and, if so, what's the principal balance?

[LeRainDrop]

Hi, everyone, despite being active on this site for a year, I've only just started playing around with the welcome/introduction section.  Here, I found a couple fun polls of the forum members, which inspired me to start this poll.  Specifically, the demographics poll asked the amount of "debt" the members have.  It appeared some people were not counting their mortgage and at least one did not even count his student loans.  To get clarity on the mortgage question, I thought I would start this poll.  I hope you enjoy participating and seeing the results!

[cawiau]

Cannot see the poll with the app I am using.

We purchased our home in May 2014

Purchase price : 330k
Mortgaged balance : 306k
Current balance : ~298k


Sent from my iPhone using Tapatalk

[Altons Bobs]

You don't have the option "No, I bought my house with cash and have no mortgage."

MOD EDIT: Added one, bottom option.

[LeRainDrop]

You don't have the option "No, I bought my house with cash and have no mortgage."

MOD EDIT: Added one, bottom option.

Oh, you're right, I didn't even think of that!  Way to go, Altons Bobs!

[Heckler]

Between 1 & 50, but a hell of a lot closer to $1.

$250k on a $270k purchase in 2003, to be paid off in full Feb 2016.  Two more months!

[LeRainDrop]

Between 1 & 50, but a hell of a lot closer to $1.

$250k on a $270k purchase in 2003, to be paid off in full Feb 2016.  Two more months!

Nice job, Heckler!  You're on the home stretch -- pun intended :-)

[coffeelover]

Bought June of 2015 after selling another home that did not meet our needs in any way.

 It was on a busy city street corner, no yard, side yard butted up to the busy 2 lane road and was very dangerous.
To small, and we hated it after a few months of living there. Lived there for quite a few years and waited for the market to come back. We sold it and made out very nicely.

 Moving and buying a new home has helped us out psychologically so much.

New home bought for 220k, mortgaged for 176k. Currently owe 174k.
Interest rate is 4.5% for 30 years.

Just to clarify I was VERY apprehensive about buying this home. But we low balled the seller and the home is worth a lot more then 220k. Seller accepted the initial offer, very surprised at that. Now I wish we would have said 210k instead.

I'm happy here and we are not all on top of each other. I know others do it but 7 people in a 1000 sq foot house just wasn't doing it for us, especially because of the yard issue.

[SwordGuy]

We were mortgage free on our last house since 2011.  For the 3 years prior we had been paying one payment per paycheck, or 3 payments a month.  The mortgage really drops fast when you do that!

We just bought a new, "keeper" house for us on Nov 30th.   Mortgage of 182,200 on a purchase price of 227,600.   20% down payment and an instant 142,000 in equity.  (We bought at 30% below appraised value. Woot!).

I'm torn between paying off the mortgage when either my mom's house or our old house sells, or investing.   I *know* I should invest instead of pay off the mortgage.  We'll see.

[TomTX]

$58,217 until Monday sometime when the payment clears.

[Squirrel away]

Our balance is around £58,000 at the moment.

[soccerluvof4]

Mortgage free paid cash.

[Cassie]

Paid cash.

[RosieTR]

Didn't pay cash, but paid it off in 2010 sometime. At the time also owned an upside-down house which we sold (at a loss but not as bad a loss as it was at the very bottom!) at the beginning of 2014. So, have been completely debt-free for nearly 2 years!

DH bought the house in 1998, for less than half what it's likely worth now (based on recent neighborhood sales). When I moved in, I paid to principal what I had been paying in rent. Time + dedication = success!

[Goldielocks]

Okey, Dokey

We need more of those MMM Californians responding! 

I know the average home value around here is around $800k, worse in CA, unless you choose a condo / apartment / townhome (which is $400k-$500k).   Given the massive incomes reported on other threads, and about half of us preferring to invest instead of paying off mortgage... there must be more people here with high mortgages.

?  anyone? 

[kittenstache]

$70000 balance left on an $88000 mortgage. I bought my house in 2010. I plan on paying off the mortgage in the next 2 years.

[YK-Phil]

I am frugal and great at saving, but I admit to be a financial dummy. I paid my current residence cash, and another rental practically cash, both in Calgary. I'm of a generation of immigrants who fled poverty and in my case a bloody civil war, who were allergic to debt of any kind and firmly believed in putting all their money in something tangible they could see and feel. Most of my peers think this is fantastic but I realize in hindsight that locking my money in illiquid assets was the worst financial mistake of my life. I'm paying for this big mistake now that I am close to retirement, but have half of my assets locked in a crumbling real estate market.

[Davids]

The current balance on my mortgage is $107K I was initially paying extra on it but earlier in the year refinanced to a 15 year 3% mortgage so now I am in no rush (Originally bought house in 2010 on a 30 year 4.5% mortgage with a mortgage balance of $200K)

[lostamonkey]

I am frugal and great at saving, but I admit to be a financial dummy. I paid my current residence cash, and another rental practically cash, both in Calgary. I'm of a generation of immigrants who fled poverty and in my case a bloody civil war, who were allergic to debt of any kind and firmly believed in putting all their money in something tangible they could see and feel. Most of my peers think this is fantastic but I realize in hindsight that locking my money in illiquid assets was the worst financial mistake of my life. I'm paying for this big mistake now that I am close to retirement, but have half of my assets locked in a crumbling real estate market.

Yeah, that is a fairly common mistake made by immigrants. It's a lot better than blowing your money on consumer goods though. Is Calgary really that bad a real estate market right now?

[BlueHouse]

$440k.  Ugh.  But I'm doing my best to pay it off early and I have greater than 55% equity just 4 years into the 30 year mortgage. 

[YK-Phil]

I am frugal and great at saving, but I admit to be a financial dummy. I paid my current residence cash, and another rental practically cash, both in Calgary. I'm of a generation of immigrants who fled poverty and in my case a bloody civil war, who were allergic to debt of any kind and firmly believed in putting all their money in something tangible they could see and feel. Most of my peers think this is fantastic but I realize in hindsight that locking my money in illiquid assets was the worst financial mistake of my life. I'm paying for this big mistake now that I am close to retirement, but have half of my assets locked in a crumbling real estate market.

Is Calgary really that bad a real estate market right now?

I am trying to stay optimistic while planning for the worst scenario. We like Calgary but we're moving to our little slice of paradise in the gulf islands and we'd prefer not to be long-distance landlords. So our first option is to sell both units, which are both in trendy and sought-after areas. One in particular, a modern industrial loft, is a block from the future National Music Centre scheduled to open in March. I paid $227K five years ago, and new cookie-cutter, less appealing units on offer right now in the neighborhood are priced well above $450K so I'm hoping to get at least $300K, if not close to what we paid for. I'm getting a bit stressed over this but if we don't get what we are hoping for, we'll keep them as rentals (our rental already nets us $1000/month after expenses, the other, much bigger, should net about the same or more) for a couple of years or until the market rebounds. Hindsight is always 20/20...

[Uturn]

Paid $152k in 09, owe $87k.  Same floorplan 2 blocks away went on the market last week at $225k.  If his sells anywhere near that, mine will be on the market soon after. 

[lostamonkey]

I am frugal and great at saving, but I admit to be a financial dummy. I paid my current residence cash, and another rental practically cash, both in Calgary. I'm of a generation of immigrants who fled poverty and in my case a bloody civil war, who were allergic to debt of any kind and firmly believed in putting all their money in something tangible they could see and feel. Most of my peers think this is fantastic but I realize in hindsight that locking my money in illiquid assets was the worst financial mistake of my life. I'm paying for this big mistake now that I am close to retirement, but have half of my assets locked in a crumbling real estate market.

Is Calgary really that bad a real estate market right now?

I am trying to stay optimistic while planning for the worst scenario. We like Calgary but we're moving to our little slice of paradise in the gulf islands and we'd prefer not to be long-distance landlords. So our first option is to sell both units, which are both in trendy and sought-after areas. One in particular, a modern industrial loft, is a block from the future National Music Centre scheduled to open in March. I paid $227K five years ago, and new cookie-cutter, less appealing units on offer right now in the neighborhood are priced well above $450K so I'm hoping to get at least $300K, if not close to what we paid for. I'm getting a bit stressed over this but if we don't get what we are hoping for, we'll keep them as rentals (our rental already nets us $1000/month after expenses, the other, much bigger, should net about the same or more) for a couple of years or until the market rebounds. Hindsight is always 20/20...

If less desirable units are being sold for $450K, why are you only looking to sell for $300K?

[danielobvt]

515k. But the place is worth 760k (a little "Daddy's only girl" discount (via my wife) and a private sale let us get in for 70k down...). Locked in at 3.75 after 3 refi's (only good part about deploying to AFG).  Since that works out to about 25% of my net worth I cannot bring myself to be much more aggressive in paying it down (the mortgage payment, when tax adjusted and with the other fee's all mean I am paying less than what it would cost to rent a nice 3BR in my area).
Though I will pop some bubbly in early 2017 when it drops below a half million...

[zephyr911]

Should be under $100K soon... started at $112K or so and have knocked it down to about $105K in a year. In another year when we hit the 2-year mark, we have to be at about $97K to remove PMI, which should be easy.

[AM43]

Primary residence owe $280K , paying extra principal every month(2.5% interest rate)
Investment property 1 owe $165K , paying extra principal every month(3.5% interest rate)
Investment property 2 owe $130K , paying extra principal every month(4.125% interest rate)
Investment property 3 owe $80K , used HELOC(current variable rate 2.85%)

[RunningWithScissors]

Hubby and I have been chatting about our mortgage lately.  We bought in 2012 with a $256K mortgage and sub 3% interest rate, and accelerated bi-weekly payments designed to achieve an 11-12 year amortization.  We're just dipping below $200K now, but I'm growing increasingly leery of a Canadian real estate bubble and would like to drop the mortgage before our renewal date comes up in 2017.  We currently have about a 65% savings rate, and the newly elected government just cut back the limit for TFSA contributions by $9K a couple, so we'll be redirecting all the TFSA money to the mortgage and more of our investment money to the mortgage.

FIRE date is 2020 so I don't want a mortgage after that.  However, if our investment returns stay reasonable and mortgage rates stay low, we'll have to find the right balance. We plan on selling the house in a few years time for a nice sum, so even if there's a mortgage, it can be paid off leaving us with a nice chunk of equity in our pockets.

[YK-Phil]

I am frugal and great at saving, but I admit to be a financial dummy. I paid my current residence cash, and another rental practically cash, both in Calgary. I'm of a generation of immigrants who fled poverty and in my case a bloody civil war, who were allergic to debt of any kind and firmly believed in putting all their money in something tangible they could see and feel. Most of my peers think this is fantastic but I realize in hindsight that locking my money in illiquid assets was the worst financial mistake of my life. I'm paying for this big mistake now that I am close to retirement, but have half of my assets locked in a crumbling real estate market.

Is Calgary really that bad a real estate market right now?

I am trying to stay optimistic while planning for the worst scenario. We like Calgary but we're moving to our little slice of paradise in the gulf islands and we'd prefer not to be long-distance landlords. So our first option is to sell both units, which are both in trendy and sought-after areas. One in particular, a modern industrial loft, is a block from the future National Music Centre scheduled to open in March. I paid $227K five years ago, and new cookie-cutter, less appealing units on offer right now in the neighborhood are priced well above $450K so I'm hoping to get at least $300K, if not close to what we paid for. I'm getting a bit stressed over this but if we don't get what we are hoping for, we'll keep them as rentals (our rental already nets us $1000/month after expenses, the other, much bigger, should net about the same or more) for a couple of years or until the market rebounds. Hindsight is always 20/20...

If less desirable units are being sold for $450K, why are you only looking to sell for $300K?

I don't want to hijack the thread with my case...but in my situation, it is due to my irrational fear of getting stuck with these properties and become a de facto long-distance landlord, with all the potential stress involved. I am weighing the pros and cons with a clear head and won't make any hasty decision, thanks to all the guidance I can now get on this forum.

[cars+FIRE]

Okey, Dokey

We need more of those MMM Californians responding! 

I know the average home value around here is around $800k, worse in CA, unless you choose a condo / apartment / townhome (which is $400k-$500k).   Given the massive incomes reported on other threads, and about half of us preferring to invest instead of paying off mortgage... there must be more people here with high mortgages.

?  anyone?

The average house value in CA is nowhere near $800k, closer to $450k.  If you're talking about some of the more desirable areas, sure.  In my city I believe it's around $550k.

My mortgage is about $270k.  Started at $390k about 5 years ago, plan is to have it paid off in 15.  I estimate my LTV is about 40%.

[NotJen]

Just passed my one-year anniversary of being mortgage free!

$165k purchase price, paid off in 8.5 yrs. Salary ranged from 56k-96k.  Bought it with my H, but had to give him half the equity (I based on purchase price) when we divorced, so ultimately I did it all on my own. We were on a 5-year plan together, so it didn't really set me back that much.

[spud1987]

Looks like I "win" so far. My balance is around 580K. We just bought a house a few months ago with 20% down. Our home budget is quite modest compared to other bay area homes and what we could "afford" based on our income (according to those affordability calculators we should be buying a home for 1.25-1.5M)!

[CCCA]

Bay area resident here. 


We have  ~$443K remaining on our mortgage.  We put about 29% down on a $680K house a few years ago.  We've been lucky to have bought in before the recent run-up in prices here.  Zillow (and recent comps) indicate our house is now worth ~$1.2-1.3M.

[mm1970]

Okey, Dokey

We need more of those MMM Californians responding! 

I know the average home value around here is around $800k, worse in CA, unless you choose a condo / apartment / townhome (which is $400k-$500k).   Given the massive incomes reported on other threads, and about half of us preferring to invest instead of paying off mortgage... there must be more people here with high mortgages.

?  anyone?

Ha ha I just voted, right there with you.

Median home price here is a little over a million.  Median home price for homes of our size (2BR, 1BA, 1100 sf, bad school district) is more like $730k.  (less than we paid, boo!)

We've been in our house 11 years.  Original price was 3/4 million (a little over that, actually), currently owe around $420k.  We pay extra every month.  It's a psychological thing for me.

[doggyfizzle]

CA resident here (Ventura).  30 yr fixed at 3.75% after a refi (bought in 2013 with 30 yr 4.75%).  Principal balance is 420k on a 440k loan.  Put 200k down on the 640k purchase price.  House was appraised at 750k earlier this year during the refi.  Our mortgage (including taxes/insurance) is $2700/month, which isn't a big deal after factoring in the sizeable tax deduction for the mortgage interest, property taxes, and state taxes (like 40k in deductions).

[asauer]

Yes,
Purchase price in 2011: 315K
mortgage original balance: 249,900
current balance: 94k

Aggressive payoff is the name of the game

[mm1970]

CA resident here (Ventura).  30 yr fixed at 3.75% after a refi (bought in 2013 with 30 yr 4.75%).  Principal balance is 420k on a 440k loan.  Put 200k down on the 640k purchase price.  House was appraised at 750k earlier this year during the refi.  Our mortgage (including taxes/insurance) is $2700/month, which isn't a big deal after factoring in the sizeable tax deduction for the mortgage interest, property taxes, and state taxes (like 40k in deductions).

Waving to you from up north SB...

[honeybbq]

Looks like I "win" so far. My balance is around 580K. We just bought a house a few months ago with 20% down. Our home budget is quite modest compared to other bay area homes and what we could "afford" based on our income (according to those affordability calculators we should be buying a home for 1.25-1.5M)!

My mortgage balance is around $650k.
I have about $750k in equity according to Zillow.

[jpompo]

Just got under $400k.  Purchased for $570k 2 years ago in Denver, value has probably increased by $75k-$100k.

[Jeremy E.]

The most surprising thing is the astonishing low amount of renters.

[BDWW]

Hmm

210K at 2.74%  Zillow says the house is worth $312k, but that's a bit optimistic. Bought in 2012 for 236K, 5% down.

[Astatine]

The most surprising thing is the astonishing low amount of renters.

Maybe the renters wouldn't click on a thread that appears to be all about mortgages.

[Lanthiriel]

We just bought in March and owe $258k on a $275k mortgage. Yay PMI! Renting is stupid expensive here, though, and we're hoping this little house sees us through to retirement in 2030.

[Uturn]

Good Lord, some of these home prices are killing me.  I have a 2300 sq 4 bedroom built in 1995 that I paid $152k for 6 years ago, and I'm thinking of selling so I can use my equity to buy something outright. 

[doggyfizzle]

Good Lord, some of these home prices are killing me.  I have a 2300 sq 4 bedroom built in 1995 that I paid $152k for 6 years ago, and I'm thinking of selling so I can use my equity to buy something outright.

But the quality of life is incredible here (in California) and totally worth braving the expensive real estate.  I can have my feet in the sand at the beach and on a boulder on a 5000' mountain almost within the same hour.

[WSUCoug1994]

Paid $680,000 - $507,000 left at 4%.  Should have it paid off at the very latest by 2024.  Not a huge priority to pay it off at this interest rate but I am not trying to start a religious war on payoff vs. investing. :)  Zillow lists the value at $1.45M.

[Money Badger]

Interesting on an MMM forum of avowed 'stachians that less than 15% total (who bought a home have paid it off or paid cash for it) based on the poll results thus far.   Seems national average is higher, including CA...   

From 2013 LA Times article: "While millions of Americans have suffered the angst of lost homes, equity and pride, nearly a third of the nation's homeowners have no mortgage at all, according to an estimate released Thursday by real estate website Zillow."

[Uturn]

Interesting on an MMM forum of avowed 'stachians that less than 15% total (who bought a home have paid it off or paid cash for it) based on the poll results thus far.   Seems national average is higher, including CA...   

From 2013 LA Times article: "While millions of Americans have suffered the angst of lost homes, equity and pride, nearly a third of the nation's homeowners have no mortgage at all, according to an estimate released Thursday by real estate website Zillow."

If your APR is 6+ pay it off now, between 3 and 6, your choice, below 3 invest.  At least that is the way my mind works. 

[Vee2001]

Well, looks like I'm the first one to admit that I live with family for free (I chip in for utilities, ultimate MMM strategy?).  Stupid California prices....  Small & old 3 bed/1 bath on a crappy lot up the street sold for $1.2M and the first thing the new owners did was to tear the place down and start new construction.  I can't deal with these prices for a primary residence on my salary unless I want a nice, long, expensive commute.

On the up side, I have a few rentals bought during the downturn that are doing well (but aren't close enough for me to use as a primary residence).

[partgypsy]

Our property tax estimate just came in, our evaluation went up from 190 to 236K. We have a 68K mortgage, 2.85% interest. People on this forum would definitely say, keep the mortgage, and we are (won't be paid off forl 10 years). But I would be lying if I got a windfall I would be tempted to pay it off. Not mathematically optimal but it would be peace of mind. If I had a paid off house we could make it work even if I ended up having to take a cut in pay for whatever reason.

[dude]

Bay area resident here. 


We have  ~$443K remaining on our mortgage.  We put about 29% down on a $680K house a few years ago.  We've been lucky to have bought in before the recent run-up in prices here.  Zillow (and recent comps) indicate our house is now worth ~$1.2-1.3M.

Holy shit!

I thought our area was doing well!  Our home value up 26% since we bought 9 years ago.  Just dropped to under $400k on the mortgage -- $399k+ as of last statement.  I enjoyed seeing the balance begin with a 3 instead of a 4.

[Jack]

Bay area resident here. 


We have  ~$443K remaining on our mortgage.  We put about 29% down on a $680K house a few years ago.  We've been lucky to have bought in before the recent run-up in prices here.  Zillow (and recent comps) indicate our house is now worth ~$1.2-1.3M.

Holy shit!

I thought our area was doing well!  Our home value up 26% since we bought 9 years ago.  Just dropped to under $400k on the mortgage -- $399k+ as of last statement.  I enjoyed seeing the balance begin with a 3 instead of a 4.

My house value increased 44% since I bought it almost exactly 6 years ago... unfortunately, being a LCOL area, that means it only increased from $107K to $154K*, or $47,000.

(* I'm in the process of a last-minute-before-the-rates-rise refinance, so that's based on an actual appraisal from earlier this month. The county tax commissioner thinks the house is worth $115K and Zillow thinks its worth $286K, so that gives you an idea of how wildly inaccurate those sorts of things can be.)