Author Topic: How old were you when you paid off your house?  (Read 26729 times)

gomike

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How old were you when you paid off your house?
« on: September 01, 2014, 09:54:33 PM »
I am 36 years old with 75% home equity.  I am wondering how old everyone was when they paid off their house.  Or if you still have a mortgage how old are you and what percent equity do you have. 

ketchup

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Re: How old were you when you paid off your house?
« Reply #1 on: September 01, 2014, 10:00:10 PM »
23 and I'm at about 70% equity.  Should have it paid off within a year or two, but I'm not in a huge hurry.

theadvicist

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Re: How old were you when you paid off your house?
« Reply #2 on: September 02, 2014, 02:30:09 AM »
32 and currently at 73% equity (wow, I had never worked that out before!!), have been making significant overpayments the whole time. However... we bought the house to renovate it, so when we get to that, overpayments will stop and we will be ploughing all that extra money into the house. I guess our equity will still increase, since we will be gaining 'sweat equity', but our mortgage will remain the same (well, just reduce by the monthly principle) for a few years.

If we didn't do anything to the house, it would be paid off at this rate in 2016 (age 34). If we spend our budgetted amount on it, we could pay it off in 2019 (age 37), assuming our work situation remains the same. If we decide to have kids, all bets are off.


Squirrel away

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Re: How old were you when you paid off your house?
« Reply #3 on: September 02, 2014, 04:39:10 AM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

BMWkiwi

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Re: How old were you when you paid off your house?
« Reply #4 on: September 02, 2014, 04:54:25 AM »
25 when I paid off the first house I lived in, but that was after selling the first two investment properties made good profit on them. It does not matter when you pay it off, it is what you do after that but you both seem on the right track. Stupid me up graded to five bedroom two story home and decided it was time to go to university with 50% equity. Oh what fun that was, house fully of flat mates paying off the mortgage and undertaking renovation. In the end finished the degree, sold the house on Christmas Day negotiation during lunch with me providing vendor finance.  Luckily to come out with  a small profit, learned house can go up and down and you don't always walk away with all your money.

Just keep doing what you doing and your be free of that mortgage.

teen persuasion

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Re: How old were you when you paid off your house?
« Reply #5 on: September 02, 2014, 07:59:21 AM »
We were 42 when we paid off the house.  The oldest had just begun college.

MillenialMustache

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Re: How old were you when you paid off your house?
« Reply #6 on: September 02, 2014, 08:02:09 AM »
27. We also bought our first rental home at 27.

PeachFuzzInVA

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Re: How old were you when you paid off your house?
« Reply #7 on: September 02, 2014, 08:26:18 AM »
We still owe $10,000, so it will be paid off in 2015. I will be 33 and my wife will be 29.

mpbaker22

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Re: How old were you when you paid off your house?
« Reply #8 on: September 02, 2014, 09:05:35 AM »
24.  What does it mean to "pay off a house?"  Is that like when you give your cash to the seller and they give you a deed?  Then yea, mine was paid off the day I bought it ;)

jwilliams0215

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Re: How old were you when you paid off your house?
« Reply #9 on: September 02, 2014, 10:05:58 AM »
29, after 5 years of having the mortgage

BlueMR2

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Re: How old were you when you paid off your house?
« Reply #10 on: September 02, 2014, 10:10:21 AM »
36, after 9 months of having a mortgage.  Complicated story, but in short: I'd saved up my money for the house, but got a great deal on a long term CD right before things crashed, then wanted to get the house a year earlier than planned...  Best deal was to pickup a mortgage for a bit until I could get at my money penalty free.

NoraLenderbee

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Re: How old were you when you paid off your house?
« Reply #11 on: September 02, 2014, 11:05:19 AM »
I didn't even buy a house until I was 41. Ten years later, we've paid almost half the mortgage (120K of 250K). I could pay it off completely now, but it seems better to invest.

Bob W

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Re: How old were you when you paid off your house?
« Reply #12 on: September 02, 2014, 11:34:42 AM »
Had a paid off home at age 35.   At today's interest rates we will plan to never pay off our current  home.

sleepyguy

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Re: How old were you when you paid off your house?
« Reply #13 on: September 02, 2014, 11:35:30 AM »
Not quite yet.

We got 150k left no the mortgage, but the rate is a ridiculous 2.99% (5yr).  We're both 35.  I say no rush at this interest rate but GF disagrees and we're attacking it pretty fast.  Probably be done before we're 40.  Kinda mind blowing when we're done paying it off the house will probably be 700k.

Louis the Cat

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Re: How old were you when you paid off your house?
« Reply #14 on: September 02, 2014, 02:23:32 PM »
Wow! We are in the minority (at least of people who have responded) in that we have less than 50% equity (~38%) but we've only owned the house for a year and have a 15 year loan at 2.5% so we are in no hurry to pay it off. We plan to pay it off on schedule in 2028, one year before the kids go to college (twins) and FIRE the same year. We are currently 32 and 30.
« Last Edit: September 02, 2014, 02:28:09 PM by Louis the Cat »

Dicey

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Re: How old were you when you paid off your house?
« Reply #15 on: September 02, 2014, 02:36:46 PM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.

As for me, we paid cash for our new house, but with the current low rates, I'm still itching for a cheap mortgage. Can't promise we won't do it.

Elderwood17

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Re: How old were you when you paid off your house?
« Reply #16 on: September 02, 2014, 02:51:39 PM »
We were 45.  Then we moved to a more expensive area, added a $100k for 15 years at 2.65% (timing is everything) for the difference in the old and new house cost, and don't plan on paying this one off one second early.  My only regret is we didn't need this much house and could have downsized a bit and stayed mortgage free. 

PeachFuzzInVA

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Re: How old were you when you paid off your house?
« Reply #17 on: September 02, 2014, 03:09:49 PM »
Wow! We are in the minority (at least of people who have responded) in that we have less than 50% equity (~38%) but we've only owned the house for a year and have a 15 year loan at 2.5% so we are in no hurry to pay it off. We plan to pay it off on schedule in 2028, one year before the kids go to college (twins) and FIRE the same year. We are currently 32 and 30.

Definitely makes sense to do it that way. In our case, my work industry is very unstable. You can make $80k one year and lose your job and have to settle for one making $30k the next, so it was more valuable to me (mentally) to get the house paid off as quickly as possible and then concentrate on accumulating wealth from there.

soccerluvof4

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Re: How old were you when you paid off your house?
« Reply #18 on: September 02, 2014, 03:22:22 PM »
I was 27 when I paid for my first house. 150ish k.

NoraLenderbee

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Re: How old were you when you paid off your house?
« Reply #19 on: September 02, 2014, 04:04:10 PM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.


Yup, did that.

Malaysia41

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Re: How old were you when you paid off your house?
« Reply #20 on: September 02, 2014, 04:22:42 PM »
I'm 41 and we have 72% equity in our house.  The interest rate is low and the math tells me it is just way better to invest and keep some of that cash free for investments.  Plus, at this level, between our house and other RE investment(which has no mortgage), we are approx 45% real estate and 45% equities so it is a good balance.  If we paid off the mortgage we would be skewed too far toward RE. 

Oh, but I want to dispense with the mortgage so badly!    I force myself to muster every ounce of self-control to not accelerate payments.  Sometimes I lose that battle and send in $10k here or $15k there. I can't help myself.

Since we are living overseas, our house is rented out - so we are pretty much splitting the profit with the bank.  It is really great actually.  But I still long to pay it off completely.  It is totally an emotional thing.  (And no need to respond with logic telling me to keep the mortgage - I already KNOW all of that. I've done that math, but it doesn't assuage that inner compulsion to be mortgage-debt free).

mpbaker22

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Re: How old were you when you paid off your house?
« Reply #21 on: September 02, 2014, 05:36:36 PM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.

As for me, we paid cash for our new house, but with the current low rates, I'm still itching for a cheap mortgage. Can't promise we won't do it.

Hmm ... well I bought my house with cash.  Of course my offer probably saved me 5K because it cash.  So, I guess that's an alternative you could throw out there.

Dicey

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Re: How old were you when you paid off your house?
« Reply #22 on: September 02, 2014, 05:41:31 PM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.

As for me, we paid cash for our new house, but with the current low rates, I'm still itching for a cheap mortgage. Can't promise we won't do it.

Hmm ... well I bought my house with cash.  Of course my offer probably saved me 5K because it cash.  So, I guess that's an alternative you could throw out there.

Hmmm... mpbaker. I'm not sure I understand your reply. Can you elaborate a bit? Not sure which "you" you are referring to.

Letj

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Re: How old were you when you paid off your house?
« Reply #23 on: September 02, 2014, 05:43:55 PM »
I have a mortgage by choice but could have paid it off at 36.  I don't plan on paying it off until retired.

chaitea

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Re: How old were you when you paid off your house?
« Reply #24 on: September 02, 2014, 06:01:58 PM »
I'm 25 (26 in a few days). I have 30% home equity but I'm not in a rush to pay it off. We have a variable interest rate of 2.35%. I have a 20 year mortgage term (four months into it!). I'll pump more money into it if the prime rate goes up but otherwise I'm sitting pretty.

cygnus

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Re: How old were you when you paid off your house?
« Reply #25 on: September 02, 2014, 06:02:41 PM »
Paid off our high six figure house at 39 after 9 years of paying down a 30 year mortgage.  Mathmatically it didn't make sense because the rate was so low - but it was the best piece of mind I could have bought.

medinaj2160

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Re: How old were you when you paid off your house?
« Reply #26 on: September 02, 2014, 07:49:18 PM »
In four months at 29 :)

What's next?

BlueHouse

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Re: How old were you when you paid off your house?
« Reply #27 on: September 02, 2014, 08:33:01 PM »
I'm 46 and have 30% equity.  I'm trying to save enough money so that I could pay it off if I want or need to, but I understand that's not the best move financially.  We'll see whether I want the peace of mind or can live with the payment hanging over my head once I have enough to pay it off at once.  That could take anywhere from 8 years to 28 years.  Yeah, I know.  It's not mustachian.  But I do plan to ride my bike to work tomorrow. 

CU Tiger

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Re: How old were you when you paid off your house?
« Reply #28 on: September 02, 2014, 09:35:45 PM »
We are 48 and 49 and have been mortgage free for 6 months. We now owe no money to anyone, except for monthly bills and ongoing expenses.

It feels great.

train_writer

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Re: How old were you when you paid off your house?
« Reply #29 on: September 03, 2014, 04:33:42 AM »
I am 25 and have ~ 6 % equity in my house on a 30-year mortgage.
This is the 2nd year.

We plan to bring the % of equity up to at 25 % in the next 2 years and re-evaluate then
« Last Edit: September 03, 2014, 04:39:52 AM by train_writer »

TheNorwegianGuy

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Re: How old were you when you paid off your house?
« Reply #30 on: September 03, 2014, 04:52:26 AM »
I am 26 and are still saving up the necessary equity to get a mortage. 15%.. Getting close.. (Technically I am already there, but I am not willing to use all my liquids or start selling my stocks). When I first get a mortage, my early  stage plan is to pay it off by age 35.

kyanamerinas

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Re: How old were you when you paid off your house?
« Reply #31 on: September 03, 2014, 04:55:56 AM »
25, just bought a house with 30% down. low rate of 2.09% with laughably low mortgage payments.
i like the idea of mortgage free and we could easily manage that in 10 years but i know with rates as low as they are it's not the best idea. we'll probably overpay slightly but not as much as we could.

plainjane

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Re: How old were you when you paid off your house?
« Reply #32 on: September 03, 2014, 06:32:30 AM »
Oh, but I want to dispense with the mortgage so badly!    I force myself to muster every ounce of self-control to not accelerate payments. 

I am so there with you.  My mortgage is variable and under 3%, and it's got just less than 3 years of amortization left.  I just want it gone.  But I know mathematically, it's likely the wrong move.  I think my issue at this point is that dropping the mortgage by 2-3k shows up as a meaningful percentage of the amount still owed, while as a proportion of investments it is quite small. 

Calvawt

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Re: How old were you when you paid off your house?
« Reply #33 on: September 03, 2014, 12:57:17 PM »
39% at age 36.  Have 11 years left on a 15 year loan at 2.625%.


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Kierun

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Re: How old were you when you paid off your house?
« Reply #34 on: September 03, 2014, 01:24:35 PM »
~40% at age 32

theadvicist

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Re: How old were you when you paid off your house?
« Reply #35 on: September 08, 2014, 03:38:20 AM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.


There's one more implied condition: You live in the US.

Here in the UK we don't get fixed interest rates for the entire term of the mortgage - it either tracks base rate, or you fix it for x years. My parents endured interest rates on their mortgage of 15% in the 90s. Paying it off early (or having savings available to do so) does, in my opinion, make sense when the rates are low NOW, but you know they can only go up.

kyanamerinas

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Re: How old were you when you paid off your house?
« Reply #36 on: September 08, 2014, 04:07:16 AM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.


There's one more implied condition: You live in the US.

Here in the UK we don't get fixed interest rates for the entire term of the mortgage - it either tracks base rate, or you fix it for x years. My parents endured interest rates on their mortgage of 15% in the 90s. Paying it off early (or having savings available to do so) does, in my opinion, make sense when the rates are low NOW, but you know they can only go up.

Our current plan is to overpay a little, save most money for pension but also some separately to pay a lump off the mortgage should rates rise. definitely think the variable rates in the uk change your approach.

agent_clone

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Re: How old were you when you paid off your house?
« Reply #37 on: September 08, 2014, 04:30:22 AM »
I'm 38 and at 67% equity. We're in no rush to pay ours off as we have a very low interest rate.

Yay for you for understanding this principle!

To everyone else who has responded, I offer you hearty congratulations under the following conditions:
You have no other debt (assumed) and more importantly, that you have stuffed your retirement accounts for every single year you were eligible to do so.


There's one more implied condition: You live in the US.

Here in the UK we don't get fixed interest rates for the entire term of the mortgage - it either tracks base rate, or you fix it for x years. My parents endured interest rates on their mortgage of 15% in the 90s. Paying it off early (or having savings available to do so) does, in my opinion, make sense when the rates are low NOW, but you know they can only go up.
Australia here, Age 30, I have 20% equity. 30 years left on tthe mortgage.  My personal plan is to first get $100k in my offset account.  I will then see where interest rates are at and either invest or put more in the offset.  The $100k gets me to a much nicer place interest wise, and if I need to lower payments then I could always actually put it on the mortgage and get the bank to recalculate payments.  Interest rates were an average of 9.5% here in 2009 at one point, I have based whether I can pay back the loan on 10% interest rates.

Strawberrykiwi75

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Re: How old were you when you paid off your house?
« Reply #38 on: September 08, 2014, 04:36:19 AM »
I'm 25, 35% equity. Single income, 6-ish percent interest. I'm on track to get it paid off in 20 years- I hope!! (Variable interest rate here too, you choose how long to fix for up to 7 years)

BlueHouse

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Re: How old were you when you paid off your house?
« Reply #39 on: September 08, 2014, 08:20:04 PM »
46 y.o.  ~35% equity.  can't wait to have the money to pay it off in after-tax accounts. Hope I don't still feel the strong desire to pay it off, but that's my measure that I use. 

Bartstache

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Re: How old were you when you paid off your house?
« Reply #40 on: September 08, 2014, 08:23:39 PM »
49 - just paid it off a few months ago.

MsRichLife

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Re: How old were you when you paid off your house?
« Reply #41 on: September 08, 2014, 08:28:42 PM »
Three houses fully paid off by 33. Total value currently ~$1.1M.

I'm in Australia where we don't seem to have the same benefits for keeping a mortgage that those in the US do.

gooki

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Re: How old were you when you paid off your house?
« Reply #42 on: September 09, 2014, 02:56:40 AM »
House paid off at age 31.

nottoolatetostart

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Re: How old were you when you paid off your house?
« Reply #43 on: September 09, 2014, 03:36:03 AM »
35 yo, 27% equity. We currently have 2.75% 7/1 ARM until June 2021. Plan on paying it off in early 2022 or refinancing. We have just about enough today in our taxable accounts to pay it off we wanted.

boarder42

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Re: How old were you when you paid off your house?
« Reply #44 on: September 09, 2014, 06:42:00 AM »
No need to payoff have a 3% interest rate. If I wasn't investing it would have been paid off in 3 years. But at 3% no reason to payoff early

Norwegian72

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Re: How old were you when you paid off your house?
« Reply #45 on: September 09, 2014, 09:53:02 AM »
40. We could have done it earlier, but put a non-mustachian car on the mortgage when it was almost done.

We have always gone with variable interest rate as this usually turns out the cheapest, and it's been really low the last few years. Still we decided to pay it off. The feeling of not owing money to anyone is GREAT.

Fun Fact: When all loans were paid off and money started accumulating I worry more about money than ever, paying attention, tracking, investing, looking for opportunities

jaizan

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Re: How old were you when you paid off your house?
« Reply #46 on: September 09, 2014, 04:22:22 PM »
Paid off when I was 33, 5 years after first purchasing.

Mega

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Re: How old were you when you paid off your house?
« Reply #47 on: September 09, 2014, 04:45:53 PM »
We will have our house paid off when I am 37, or 5 years from now. Quite an accomplishment clearing a $283,000 mortgage in 10 years, while still saving for retirement.

mozar

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Re: How old were you when you paid off your house?
« Reply #48 on: September 09, 2014, 07:31:46 PM »
In the middle of refinancing from 30 yr 5.1% to 15 yr 3.5%. I will be 46.

birdman2003

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Re: How old were you when you paid off your house?
« Reply #49 on: September 10, 2014, 12:58:42 PM »
I am 29 with 31% equity.  I am only 2 years into my 15 year 3.0% mortgage, so I see no reason to pay it off early, other than I am planning to be FI by 40 so I should be able to kick a few thousand at it here and there to make sure I achieve that goal.