We've decided to finish off our current home mortgage.
Starting Mortgage Debt : $ 180,001
Beginning Mortgage Debt This Month: $146,890
Paid Mortgage Debt This Month : $ 885
Ending Mortgage Debt : $146,005
$227,500 purchase with an appraised value of ~$324,000. Current Zillow value of $345,000 (for what that's worth).
Plan is to pay off a HELOC we're using to fund some renovations on a couple of properties by April, 2020, then hit this mortgage hard. We'll be selling a property, probably within the year, and we intend to put at least $40,000 of the equity into the mortgage.
RMDs from our 401Ks/IRAs for 2020 will be used to pay off the HELOC. We'll put about $15,000 from them against the mortgage in 2021 and 2022.
Our FIRE income is going up in 2020 from several sources (Social security for me and profits from two rental houses coming online). Rather than spend it, we're planning on adding in an additional $1200 a month starting by April 2020. That, plus the regular payments should get us paid off around September, 2022. I just sent in the December 2019 payment, so we're talking about paying it off in 33 more payments, in just under 3 years. Otherwise we would have just under 12 years to go.
If we end up selling the property using owner financing instead of them getting a bank loan, that will slow us down a bit. Instead of a $40,000 lump sum in the first year, it would be $500+ / month starting by 2021. Those payments would only bring in $12,000 in two years, leaving a shortfall of $28,000. We'll have another property income stream starting up in 2022 which should bring in about $850 a month, plus we can toss in the 2023 RMD of $15,000. It would delay us 4-5 months. Not bad!
If we have a big stock drop we'll funnel the extra payments into stocks. If rental property drops big time we'll divert it to rental houses. But until/unless those things happen, we're going to stomp on this mortgage. At a fixed rate of 2.75% it doesn't make economic sense to pay it off early (assuming historically average returns),, but we're FIRED, we have enough and I'm just tired of the mortgage.