Go to your local credit union ( you ARE using a credit union and not a thief....uh, I mean bank ) and take out a HELOC. With the mortgage in place and cash accounted for, it should glide right through. Once you no longer have the mortgage, financial institutions won't want to lend you money anymore. The HELOC is there just in case. We took one out right before adopting our first son and still have it ready just in case (son is 20 now).
Next: You no longer need to make mortgage payments! This means that you can put that money back into a CD or invest it or buy iBonds or whatever.
Finally: Don't tell other people, especially friends that you've paid off your mortgage. People who live by "money ain't gonna spend itself" will absolutely not understand and you could lose them as friends. My wife and I have friends who we know from college and have been best friends with since. They've always made sure that they spend every dollar they touch. While our house was paid off 15 years ago and we grew our mustache (before MMM even existed......heck......Pete was in junior high when we started living this way) to the point where we've got 2 commas in investments on top of the house. You're on your way to our way of life where you don't wonder where the next payment will come from ever again nor wonder how you'll pay your way after you stop working.
Thank you for your advice. I am going to look into a HELOC. I am using a small local bank, its not a credit union, but I will look into getting a HELOC from a credit union.
You are absolutely right about not telling about this to other people. We going to keep this to ourselves. Neither of our families or friends are going to know about this. I am not entirely sure how to break it to them, or what I would accomplish by doing so. More than once, they have told me that I need to spend more on things, that I don't care about, like a new car etc. I remember telling them at the time that I don't have the money for it - which is not a lie. I don't have money to spend on a new car when I am saving to pay off the house! But of course, their idea of buying a car is taking a loan...this goes against my philosophy.
Now, if they realize that I don't have a home payment, I am afraid they will become more judgmental about how I live my life. I don't think anything good will come out of it. So, as sad as it is, I can't share this happy moment with my family and friends. I will however definitely learn to "live" a little :)
Last few years have been spent at home playing video games. Not that I didn't enjoy that, but I definitely want to do more in life. I am going to automate my savings and investments, and have a budget for discretionary spending. This was something I did not have until now. I think I can afford this. I thinking 1% of my take home pay to start off. Small enough to not be irresponsible, and enough for me to buy things on an impulse.
Thank you everyone for your support. It is much appreciated.
We hope to be in your shoes by about this time next year, wish us luck ;)
All the best to you! Hopefully we will see a post from you about how you are mortgage debt free!
I paid my house off a couple years ago as a Bday present to DH after having to making a bunch of excuses as to why I was hoarding cash. It was great. I did it the day before, and I was so excited I wasn't even able to wait until his actual birthday.
That sounds fantastic! Good on you! I am sure your husband was very happy with your decision! :)
Have fun investing the money you used to send to the bank!!
That's the idea! I did not see any reason to keep making payments to the bank when I can easily pay off the house, and then put a very solid investment strategy in place.
STATUS Update - The transfer from savings account to checking account is in progress. I think the money is going to be available by Thursday, and I think I am going to call the mortgage company on Friday. We maybe debt free by next week! :)
