Author Topic: Mortgage Payoff Club!!  (Read 624512 times)

princeradar

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Re: Mortgage Payoff Club!!
« Reply #1900 on: September 22, 2019, 08:02:15 PM »
Threw off the chains on September 20th, mortgage is gone.  100% debt free, it's a sweet place.

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1901 on: September 22, 2019, 08:20:47 PM »
Threw off the chains on September 20th, mortgage is gone.  100% debt free, it's a sweet place.
Congrats!  It's a good feeling!

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1902 on: September 23, 2019, 07:30:45 AM »
Can I just take a quick survey among you people who are slaying the mortgage:

What kind of mortgage did you get? I'm trying to decide between a 30-year fixed and a 15-year fixed right now.

MaybeBabyMustache

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Re: Mortgage Payoff Club!!
« Reply #1903 on: September 23, 2019, 09:01:40 AM »
@talltexan - we went for a 7/1 ARM, because our goal is to have the house paid off in 7 years. Also, the next seven are our big income producing years, and after that, the kids will be out of the house. Our mortgage is quite large (bay area) so the difference in interest rate we could get with the 7/1 ARM vs a 30 year was crazy. We have a lot of flexibility, but plan to pay off the house on a very accelerated schedule.

Photograph 51

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Re: Mortgage Payoff Club!!
« Reply #1904 on: September 23, 2019, 10:38:43 AM »
Threw off the chains on September 20th, mortgage is gone.  100% debt free, it's a sweet place.
Congrats!  It's a good feeling!

Good for you.  A paid off mortgage is something you will be thankful for over and over.

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1905 on: September 23, 2019, 12:12:46 PM »
@talltexan - we went for a 7/1 ARM, because our goal is to have the house paid off in 7 years. Also, the next seven are our big income producing years, and after that, the kids will be out of the house. Our mortgage is quite large (bay area) so the difference in interest rate we could get with the 7/1 ARM vs a 30 year was crazy. We have a lot of flexibility, but plan to pay off the house on a very accelerated schedule.

Thank you for this response. I asked my lender, and she said the ARM's are actually higher than 30-year fixed right now, which suggests to me that the banks expect rates to be quite low even 6-8 years from now.

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #1906 on: September 24, 2019, 05:28:13 AM »
@talltexan,   More than the money, it's about motivation.   I paid off a 7 year ARM that had an interest rate advantage over fixed loans at the time back in 2011.  Then the motivation to avoid the rate adjustment or refi expenses at 7 years was key.    All the talk about yield curve inversion means ARMs are a bit less attractive now though as you noted.   It's all about the fees up front in the mortgage origination game, so shop around like mad and avoid brick and mortar banks that give the whole greased sales pitch about mortgage/"Premium Banking"/"Free Checking"...   We found $3,000 or more in savings by shopping hard and going with a pure mortgage originating firm that sold our loan off in less than 60 days after closing to a mortgage servicer (who fed the monthly payments to either Fanny or Freddie every month) just like the big bank would have.   I remember the loan officer [aka, commissioned sales person] at SunTrust and Wells Fargo both crying "there's no way they can meet those [originating firm] numbers they gave you." so beware of what big banker mortgage sales person tells you!   Then all the parasitic middle men earning fees off your hard earned income every month.   If possible, swing the new house with higher equity up front and just a HELOC?   That avoids the big up front origination fees, and the higher rates sure as heck motivates to pay off the HELOC to avoid interest rate adjustments and note of course it's a full recourse loan (meaning if you don't pay, they can come after your income, not just the house)... but at a smaller balance, you will have less interest in total each month, more control and it will motivate you to get you to freedom faster.

Huskerfan

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Re: Mortgage Payoff Club!!
« Reply #1907 on: October 02, 2019, 06:37:47 PM »
Threw off the chains on September 20th, mortgage is gone.  100% debt free, it's a sweet place.

Congrats!!!! Gotta be a great feeling

Huskerfan

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Re: Mortgage Payoff Club!!
« Reply #1908 on: October 02, 2019, 06:43:47 PM »
As of Friday we are officially mortgage free!!!  My husband got his bonus and we realized it we put all of it towards the mortgage plus 8k from our savings we could pay it off completely. Our liquid saving account had been creeping up again anyway so we decided it was worth it. I donít think itís really hit us yet. I think on October 1st when the mortgage payment doesnít come out of the account it will feel real.

 For those of you who have paid off your mortgage - did you do anything other than call your insurance company and tax office to have the bills come directly to you?  The bank told us we would get a letter of satisfaction and a check from our escrow balance within 10 days.

 Congrats!!! Amazing achievement!

Gail2000

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Re: Mortgage Payoff Club!!
« Reply #1909 on: October 03, 2019, 06:37:10 PM »
Threw off the chains on September 20th, mortgage is gone.  100% debt free, it's a sweet place.

Amazing! Congrates!

TomSelleckJR

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Re: Mortgage Payoff Club!!
« Reply #1910 on: October 11, 2019, 12:51:30 PM »
Can I just take a quick survey among you people who are slaying the mortgage:

What kind of mortgage did you get? I'm trying to decide between a 30-year fixed and a 15-year fixed right now.


We had a 30 year fixed, but paid it off in 11 years.

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #1911 on: October 18, 2019, 04:24:58 PM »
Can I just take a quick survey among you people who are slaying the mortgage:

What kind of mortgage did you get? I'm trying to decide between a 30-year fixed and a 15-year fixed right now.


We had a 30 year fixed, but paid it off in 11 years.
I have a 30 year fixed.  I'm aiming to get the principal down below $100K and then pay just what I owe.  Either that or pay it off in under 15 years.  I am an independent consultant and cash flow is never guaranteed and that makes me nervous

Vashy

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Re: Mortgage Payoff Club!!
« Reply #1912 on: October 19, 2019, 01:58:04 AM »
We just re-mortgaged from a lifetime tracker at 2.49% to a fixed tracker at 1.34% - our LTV is just below 20% now, but similar deals became available at LTVs of 60% and less. The rate, BTW, gives me extreme pleasure - inflation stands at 1.7%, and I think the rate could arguably go down - in the case of a hard Brexit (and the one we're seeing is not soft) or no deal, the Bank of England will start the money printing press and keep rates low, ie likely higher inflation and lower rates, both of which are fine for me.

We had £91,300 outstanding on a £200k loan, so going from LTV 50% to <20% is all due to the house doubling in value over the past 8.5 years since we bought it.

The 1.34% rate breaks down into 0.75% Band of England rate and the rest is HSBC's take. HSBC charged £999 and added that money onto the mortgage. After two years, that rate increases to 4.3% unless we remortgage again. Our monthly payments dropped from circa £550 to circa £426, and we plan to pay £1,800 a month, which should about halve the mortgage in those two years. That's about 50% of our disposable income after food and commute. We could probably kill it completely, but we need to build up some accessible savings to get us to the point when we can access our private pensions.

I'm just astonished at how we started paying off the same house for £1,200/month at a 90% mortgage 8.5 years ago, and since then, the low bank rates, house appreciation, and vigilance and smart decisions about the mortgage products have shaved off 70% from our payments. In our area, we'd pay £1,600 to rent the same type of property, so buying was the right choice. Plus, it's an attractive commuter town, very green and wealthy outside London, so I'm not even worried about a crash or not finding a buyer for it.
« Last Edit: October 19, 2019, 02:01:34 AM by Vashy »

Bigjones

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Re: Mortgage Payoff Club!!
« Reply #1913 on: October 21, 2019, 10:18:22 AM »
What would you do

I owe roughly $67k on my HELOC (no first mortgage). The heloc used to be about 3% but is now pushing 6.5%.   Combined salary is about $155k and i really would love to be debt free, this HELOC is all we have left.

It would take a huge sacrifice to pay it off in 14-16months but im interested and serious about paying this off.   

Im 49yrs old and have roughly 165k in 401k and IRAS (i know i have a ways to go) but mortgage free would be a huge burden off my shoulders in a job market thats not in a great place where i live.

Looking forward to your thoughts

Boofinator

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Re: Mortgage Payoff Club!!
« Reply #1914 on: October 21, 2019, 10:23:36 AM »
What would you do

I owe roughly $67k on my HELOC (no first mortgage). The heloc used to be about 3% but is now pushing 6.5%.   Combined salary is about $155k and i really would love to be debt free, this HELOC is all we have left.

It would take a huge sacrifice to pay it off in 14-16months but im interested and serious about paying this off.   

Im 49yrs old and have roughly 165k in 401k and IRAS (i know i have a ways to go) but mortgage free would be a huge burden off my shoulders in a job market thats not in a great place where i live.

Looking forward to your thoughts

I think I'm just confirming what you're thinking, but pay that sucker off as fast as you can manage.

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1915 on: October 21, 2019, 01:54:06 PM »
Focus on that debt, and you could be completely debt-free at age 50. See that in your mind.

Telecaster

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Re: Mortgage Payoff Club!!
« Reply #1916 on: October 21, 2019, 04:10:25 PM »
What would you do

I owe roughly $67k on my HELOC (no first mortgage). The heloc used to be about 3% but is now pushing 6.5%.   Combined salary is about $155k and i really would love to be debt free, this HELOC is all we have left.

It would take a huge sacrifice to pay it off in 14-16months but im interested and serious about paying this off.   

Im 49yrs old and have roughly 165k in 401k and IRAS (i know i have a ways to go) but mortgage free would be a huge burden off my shoulders in a job market thats not in a great place where i live.

Looking forward to your thoughts

I'd kill it.  Variable interest rate loans are kind of like walking through a mine field.  You might be okay, but you might blow a leg off, too. 

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #1917 on: October 26, 2019, 07:21:10 PM »
@Bigjones,   You'll get lots of sympathy to pay off the HELOC on this thread...   If you're going to commit to it in 14 or so months, then what is the monthly budgeting discipline to pay it down from operating income?   What after tax investments can you draw down in part to cover the rest?    The combination of these 2 things give you the realistic timeline to freedom (plus maybe a windfall or bonus along the way... or a setback due to life event or other unexpected expense).   We certainly had our share of success and issues along the way as do most.   C'est la vie!

Tdem

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Re: Mortgage Payoff Club!!
« Reply #1918 on: October 27, 2019, 08:19:02 AM »
What an amazing topic with dito achievements!! :) Would like to join the club.

Initial mortgage 2015: 150k
Mortgage today: 108k

In January we can pay off another 10% (15k), penalty free. Then we will go below the 100k. Really can't wait!

If we continue like this, we can be rid of the mortgage in 2025.

Trifele

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Re: Mortgage Payoff Club!!
« Reply #1919 on: October 28, 2019, 06:22:32 AM »
What an amazing topic with dito achievements!! :) Would like to join the club.

Initial mortgage 2015: 150k
Mortgage today: 108k

In January we can pay off another 10% (15k), penalty free. Then we will go below the 100k. Really can't wait!

If we continue like this, we can be rid of the mortgage in 2025.

Welcome @Tdem!  Sounds like a solid plan.   

Tdem

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Re: Mortgage Payoff Club!!
« Reply #1920 on: October 28, 2019, 06:42:00 AM »
Thanks for the warm welcome! 😍

Steveray7071

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Re: Mortgage Payoff Club!!
« Reply #1921 on: October 28, 2019, 08:22:54 AM »
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.

Currently at $168K

Putting $30K on this week (sale of a property).

EOW: $138K

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1922 on: October 28, 2019, 08:30:34 AM »
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.

Currently at $168K

Putting $30K on this week (sale of a property).

EOW: $138K

In 10 months?  That's about $15K per month?   That's a mighty good clip!

KBecks

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Re: Mortgage Payoff Club!!
« Reply #1923 on: November 08, 2019, 01:06:48 PM »
We're killing the mortgage soon... sent a $28K payment and have about $985.00 left, I've requested the final payoff paperwork and we'll need to get everything settled and final in the next week or two.  It's been 20 years in our house, so 20 instead of 30, not amazingly fast but we've made it.

frizzywhiskers

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Re: Mortgage Payoff Club!!
« Reply #1924 on: November 08, 2019, 01:18:22 PM »
We're killing the mortgage soon... sent a $28K payment and have about $985.00 left, I've requested the final payoff paperwork and we'll need to get everything settled and final in the next week or two.  It's been 20 years in our house, so 20 instead of 30, not amazingly fast but we've made it.

 Congrats!  Very exciting news!

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #1925 on: November 08, 2019, 06:02:07 PM »
@KBecks,  The point is making it so congrats on freedom!   Put that free cash flow to great use!

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1926 on: November 08, 2019, 06:07:09 PM »
We're killing the mortgage soon... sent a $28K payment and have about $985.00 left, I've requested the final payoff paperwork and we'll need to get everything settled and final in the next week or two.  It's been 20 years in our house, so 20 instead of 30, not amazingly fast but we've made it.

Congrats!

I suspect that moved the needle a bit closer to FIRE!

Let us know how far along you are at https://forum.mrmoneymustache.com/throw-down-the-gauntlet/race-to-100-fi!/

KBecks

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Re: Mortgage Payoff Club!!
« Reply #1927 on: November 09, 2019, 02:29:27 PM »
Thank you, everybody!  We have three kiddos and the oldest will be college-bound and hopefully college-ready in about 3.5 years.  I think the plan is to go into savings beast-mode (again) to ramp up for education and/or early retirement.  The education thing is freaking me out because I still like the idea of a private college for my oldest (a small pond with small class sizes), but our kids' paths might be something like commuting to community college for 2 years and then transferring to a bigger or more personalized school.  We have some money saved for them, but the task seems large and scary.  We will get there one step at a time.

I'll let everyone know when our papers are settled and the house is all ours!

paulkots

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Re: Mortgage Payoff Club!!
« Reply #1928 on: November 19, 2019, 06:33:38 PM »
If everything goes well, I should be making my final house payment in middle of December. Yes, I will dip into savings a bit(month worth of income) but I just want the house paid off by 2020. Goal was to have house paid off by 35, I am a year ahead of schedule. To celebrate, I am already planning a 2 month roadtrip to Alaska, part of which I want to drive my personal car to Arctic Ocean(Tuktoyaktuk).


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KBecks

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Re: Mortgage Payoff Club!!
« Reply #1929 on: November 20, 2019, 06:09:15 AM »
It is finished!  Bank wire arrived on Monday and we are mortgage-free!

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1930 on: November 20, 2019, 06:19:56 AM »
It is finished!  Bank wire arrived on Monday and we are mortgage-free!

Great news!

PS - Wait about 2 months and then check with your county registrar of deeds.   Verify that the lien on your house from the mortgage has been removed.   That way, if you ever sell, you don't a last-minute delay while they deal with the surprise lien.

TomSelleckJR

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Re: Mortgage Payoff Club!!
« Reply #1931 on: November 21, 2019, 02:14:44 PM »
Congrats @KBecks  and @paulkots !!!


paulkots

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Re: Mortgage Payoff Club!!
« Reply #1932 on: December 07, 2019, 07:46:47 AM »
Made my last online payment today, will be heading into the local bank branch on Friday to finish off paying the house. Last online payment paid the house down to $7.38! Will be calling the bank Monday to see what I need to bring in and the total needed for me to do the final payment.

pdxmonkey

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Re: Mortgage Payoff Club!!
« Reply #1933 on: December 08, 2019, 10:02:30 AM »
Congratulations to everyone that has made a final payment recently.

AnxietyFly

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Re: Mortgage Payoff Club!!
« Reply #1934 on: December 08, 2019, 10:08:16 AM »

FIRE Artist

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Re: Mortgage Payoff Club!!
« Reply #1935 on: December 10, 2019, 09:36:00 AM »
I am in the end game for FIRE, so am switching my focus from accumulation to paying down my mortgage.  In 2020, my goal is to double up my regular mortgage payments for the year, and also make the maximum annual lump sum.  This will see my amortization reduced from 12.5 years at the end of 2019 to a conservative 8.5 years at the end of 2020.

paulkots

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Re: Mortgage Payoff Club!!
« Reply #1936 on: December 10, 2019, 11:51:41 AM »
Who thought that final payment is such a hassle. Went to the bank that holds my mortgage loan, asked for a final payoff letter, waited for 30 minutes, nothing. Came up again, teller called the mortgage department again only to figure out that she gave them the wrong fax number, papers came in. Took the papers and went to my bank(where checking account is) to get the wire transfer done, banker went through the paperwork and said it wasn't complete, the teller from mortgage bank only gave me 2 pages out of 6. Went back to mortgage bank, teller apologized and found the other 4 missing pages, went back to my bank, sat on the phone with mortgage bank while the wire transfer was being done since some instructions were not completely clear, finally sent the wire transfer.. House is now paid off but it took hours!