Author Topic: Mortgage Payoff Club!!  (Read 766664 times)

alcon835

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Re: Mortgage Payoff Club!!
« Reply #2150 on: January 15, 2021, 12:33:43 PM »
Dave is significantly more solid than folks around here give him credit for.

I think he's awesome at connecting with his audience and convincing them to change their behavior for the better.
He gives great advice for getting out of debt, particularly for people who have had problems controlling their spending.

His investing advice seems suspect and designed to funnel people to high fee investments.

Agreed. Eat the meat: Budgeting, Insurance, Getting out of debt, understanding real risk.

Spit out the bones: Anything and everything he says about investing.

AK

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Re: Mortgage Payoff Club!!
« Reply #2151 on: January 16, 2021, 06:17:54 AM »
after listening to Dave Ramsey for a week I decided to pay off my mortgage and did it today.  Purchased residence Jan 2015 so it was a large amount relative to the original principal on the loan.

before I was all about creating positive leverage with debt

Congrats!!

swaneesr

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Re: Mortgage Payoff Club!!
« Reply #2152 on: January 16, 2021, 06:25:33 AM »
after listening to Dave Ramsey for a week I decided to pay off my mortgage and did it today.  Purchased residence Jan 2015 so it was a large amount relative to the original principal on the loan.

before I was all about creating positive leverage with debt
Great job. You truly own every square foot of your home. Every 2x4 and electrical outlet. Must be amazing.

DW and I are working hard to get to the same place.


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AK

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Re: Mortgage Payoff Club!!
« Reply #2153 on: January 16, 2021, 06:50:51 AM »
The mortgage is officially paid. I now feel excited for the future opportunities it brings such as
  • I opened a brokerage investment account for the first time and bought some Tesla stock, which is my first ever non-index fund stock purchase. This helps with tax diversification.
  • Opened 529 accounts and started funding them. After maxing out retirement accounts and paying off debt, funding 529s for the kids is awesome.
  • It's also nice to know that I can use property taxes as a credit card bonus expense source if needed since they're my responsibility now.
  • Reopen our HELOC to have a higher line amount at a better variable rate. This lets me change my mind and use the money to invest instead if desired.



I hope it feels better than the meh / indifference after paying off my student loans. Anyone else feel like that?

I wasn't super pumped in the last year or so leading up to paying ours off.  What made it exciting for me was when I realized we could scrounge up enough cash to pay it off about 6 months ahead of schedule.  That spontaneous decision, and the series of transactions immediately afterward (requesting the payoff letter, scheduling the wire transfer from our bank, seeing the $0 balance on the mortgage) was quite a rush.

We basked in the afterglow of that excitement for quite some time.  Naturally it fades after a while, but 11 months later it's still a very pleasant memory to relive.  Not having the mortgage during all the fear and uncertainty during the early days of COVID did give us palpable peace of mind.

It was a little unnerving for me this week. The payment was done electronically on Wednesday and showed as "unapplied" for two days. Friday it finally showed as paid in full. However, seeing that is Awesome. The timing may be poor though since my school taxes were due Friday and I have to check if the bank paid them from escrow or I have to now. Little things...


I hope it feels better than the meh / indifference after paying off my student loans. Anyone else feel like that?

Paying off the mortgage felt like an achievement and it was a reason to celebrate.

The real bonus for me kicked in a few months later, it felt like I received a raise. Then covid happened and nobody knew what the future would bring, having no payments gave me a peace of mind. Now I see businesses closing down around me and I have worries about my own but I know that if necessary I can take less profits from the business to help it weather the storm, paid off house allows me to do this.

I hope to have the same feeling come first of the month.

It'll be 2 years to the day Jan 19th that I paid the mortgage off AND we downsized.   It's completely changed the pace of net worth growth (skyrocketing with cashflow investment vs. the old mortgage days).  And during a pandemic and my job loss, our net worth increased because I didn't have to raid our investments to live AND could take risks when the market tanked last March instead of hiding in cash to be safe and liquid.   Best thing we ever did.

Congrats on downsizing and the net worth skyrocketing! I also feel like I could take on riskier things that could pay off even better such as starting a YouTube channel or releasing some informational product.

Spoon

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Re: Mortgage Payoff Club!!
« Reply #2154 on: January 18, 2021, 03:52:01 AM »
We managed to hit mortgage payoff in 2020, and then turned around and did the least mustachian thing possible, loaded up on debt! We are upgrading our life and I can't wait. We have been looking to get out of suburbia for years and are moving to 25 acres this weekend.

At this stage there is no plan for paying off the debt, just lots of spending. From here the rough plan is
Clean and lightly renovate the existing house
Buy the wife a 4WD, there is a creek at the bottom of the property that crosses the road in/out that occasionally floods and the extra height is needed to get through
Fix the run down farm machinery, buy livestock and get planting
Adjust the driveway into a loop, clear 2 new building envelopes
Build a tiny/shipping container house to airbnb
Start airbnb -ing
Build another portable place to rent
Sell one/both/as many as necessary
Use the money from the sales to build something bigger and more permanent for holiday renting and live in when required
Knock down the existing house and build from scratch

Im a builder (contractor to US folks) and I would rather work more years and build myself a new house than retire earlier. Once the new build is complete it will be time to smash the debt once again. Hopefully I remember how :)

couponvan

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Re: Mortgage Payoff Club!!
« Reply #2155 on: January 21, 2021, 07:21:18 AM »
@Spoon congrats on the property.  I called my husband's newfound desire for "land" a midlife crisis, but we're about 12 years older than you, and the idea of farming in old age does NOT sound appealing to me.  12 years ago it would have been awesome!

nereo

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Re: Mortgage Payoff Club!!
« Reply #2156 on: January 21, 2021, 08:52:46 AM »
Dave is significantly more solid than folks around here give him credit for.

I think he's awesome at connecting with his audience and convincing them to change their behavior for the better.
He gives great advice for getting out of debt, particularly for people who have had problems controlling their spending.

His investing advice seems suspect and designed to funnel people to high fee investments.

As is being discussed in another thread, DR is also an anti-masker and workplace tyrant who fires people who do things he doesn't approve of in their private lives. He browbeats employees and callers who don't agree with him... I could go on...

So it's not just the message, but also the messenger.

https://forum.mrmoneymustache.com/off-topic/dave-ramsey-is-an-anti-masker/
https://www.nashvillescene.com/news/pith-in-the-wind/article/21145502/get-a-load-of-this-unhinged-email-from-dave-ramsey-and-co
https://religionnews.com/2021/01/15/dave-ramsey-is-tired-of-being-called-a-jerk-for-his-stands-on-sex-and-covid/

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #2157 on: January 21, 2021, 09:23:40 AM »
Dave is significantly more solid than folks around here give him credit for.

I think he's awesome at connecting with his audience and convincing them to change their behavior for the better.
He gives great advice for getting out of debt, particularly for people who have had problems controlling their spending.

His investing advice seems suspect and designed to funnel people to high fee investments.

As is being discussed in another thread, DR is also an anti-masker and workplace tyrant who fires people who do things he doesn't approve of in their private lives. He browbeats employees and callers who don't agree with him... I could go on...

So it's not just the message, but also the messenger.

https://forum.mrmoneymustache.com/off-topic/dave-ramsey-is-an-anti-masker/
https://www.nashvillescene.com/news/pith-in-the-wind/article/21145502/get-a-load-of-this-unhinged-email-from-dave-ramsey-and-co
https://religionnews.com/2021/01/15/dave-ramsey-is-tired-of-being-called-a-jerk-for-his-stands-on-sex-and-covid/

Fully agree.   Was limiting my comments to financial advice matters.

v8rx7guy

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Re: Mortgage Payoff Club!!
« Reply #2158 on: January 22, 2021, 08:13:27 AM »
So now that we have our duplex paid off (1/1/2021) we are using a portion of the new cashflow to target our main residence to be paid off by our FI Date 4/19/2035 (my 50th birthday).  It's going to take an extra $300/mo so now we are throwing a total $600/mo at the mortgage to have it done by our target date.  Can't wait!

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2159 on: January 24, 2021, 07:08:35 PM »
So now that we have our duplex paid off (1/1/2021) we are using a portion of the new cashflow to target our main residence to be paid off by our FI Date 4/19/2035 (my 50th birthday).  It's going to take an extra $300/mo so now we are throwing a total $600/mo at the mortgage to have it done by our target date.  Can't wait!

Congrats on knocking out the duplex!   Celebrate the moment!    Next, we conspire on how to accelerate or downsize the main residence (or do both) to be free and clear in less than half that time.   Bwah, ha, ha!   ;-)

BlueHouse

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Re: Mortgage Payoff Club!!
« Reply #2160 on: January 28, 2021, 12:16:11 PM »
I can't say that I understand paying off an investment property.  The expenses directly offset the income.  I would think that you'd want the expenses on a rental to be as high as possible. 

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #2161 on: January 28, 2021, 01:05:50 PM »
I can't say that I understand paying off an investment property.  The expenses directly offset the income.  I would think that you'd want the expenses on a rental to be as high as possible.

You want the paper expenses to be as high as possible, not the cash out of pocket expenses. :)

Segare

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Re: Mortgage Payoff Club!!
« Reply #2162 on: January 29, 2021, 04:56:05 AM »
I can't say that I understand paying off an investment property.  The expenses directly offset the income.  I would think that you'd want the expenses on a rental to be as high as possible.
Expenses are still just that, an expense. You get a portion of that taken off your tax liability, but not the whole thing or more than the whole thing. If your place is paid off you still get expenses to deduct, just not the mortgage interest one, and that is only a portion of the interest paid.

Lilium

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Re: Mortgage Payoff Club!!
« Reply #2163 on: February 04, 2021, 04:07:02 PM »
First payment post re-finance has been made.  Did not have the escrow from the previous lender yet, but I did have the whole Jan and extra payment to put toward the February bill.  2924 total extra.

Start: 168,090
New: 164,788.99

March will include the escrow from the old lender and the extra(?) from the new lender. Should be a bit over 6k.


swaneesr

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Re: Mortgage Payoff Club!!
« Reply #2164 on: February 04, 2021, 06:52:14 PM »
Do you ladies and gentlemen know what tomorrow is?

February 5th, 2021.

Our mortgage payment will come out of our checking account.

We have been accelerating the payments (x3) all of 2020.

We have also been saving in a separate account in addition to the mortgage. I guess we were worried about COVID and job losses. Decided to save up extra cash.

The payoff amount and the extra account may cross each other allowing us to make the final payment. Around $35k.

If the spreadsheet is correct, we can submit the final payment and cross the finish line. I still can not imagine having ZERO debt.

Following all you others has been inspiring.

So I wait until tomorrow to see if we made it.

Swanee.

PS I know this is not a big deal for some. Me 54, DW 52. Not real early.....


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Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2165 on: February 04, 2021, 08:26:57 PM »
First payment post re-finance has been made.  Did not have the escrow from the previous lender yet, but I did have the whole Jan and extra payment to put toward the February bill.  2924 total extra.

Start: 168,090
New: 164,788.99

March will include the escrow from the old lender and the extra(?) from the new lender. Should be a bit over 6k.
That'll get your indenture down ~20% if I interpreted it right...  You're killing it!   Keep focused because it's how you kill this debt and win!

Trifele

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Re: Mortgage Payoff Club!!
« Reply #2166 on: February 05, 2021, 02:41:15 AM »
Do you ladies and gentlemen know what tomorrow is?

February 5th, 2021.

Our mortgage payment will come out of our checking account.

We have been accelerating the payments (x3) all of 2020.

We have also been saving in a separate account in addition to the mortgage. I guess we were worried about COVID and job losses. Decided to save up extra cash.

The payoff amount and the extra account may cross each other allowing us to make the final payment. Around $35k.

If the spreadsheet is correct, we can submit the final payment and cross the finish line. I still can not imagine having ZERO debt.

Following all you others has been inspiring.

So I wait until tomorrow to see if we made it.

Swanee.

PS I know this is not a big deal for some. Me 54, DW 52. Not real early.....


That's a huge deal @swaneesr!  Congratulations!  :)

alcon835

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Re: Mortgage Payoff Club!!
« Reply #2167 on: February 05, 2021, 09:54:31 AM »
Do you ladies and gentlemen know what tomorrow is?

February 5th, 2021.

Our mortgage payment will come out of our checking account.

We have been accelerating the payments (x3) all of 2020.

We have also been saving in a separate account in addition to the mortgage. I guess we were worried about COVID and job losses. Decided to save up extra cash.

The payoff amount and the extra account may cross each other allowing us to make the final payment. Around $35k.

If the spreadsheet is correct, we can submit the final payment and cross the finish line. I still can not imagine having ZERO debt.

Following all you others has been inspiring.

So I wait until tomorrow to see if we made it.

Swanee.

PS I know this is not a big deal for some. Me 54, DW 52. Not real early.....


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This is awesome @swaneesr !!!!!!!!!!!

You gotta come back here and celebrate once you fully and completely own your home!

couponvan

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Re: Mortgage Payoff Club!!
« Reply #2168 on: February 05, 2021, 12:10:21 PM »
Go do the barefoot lawn dance on your very own ground.  Or the barefoot snow dance....just don't get frostbite.  Congratulations!!!

swaneesr

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Re: Mortgage Payoff Club!!
« Reply #2169 on: February 09, 2021, 04:51:06 PM »
It is done.

DW and I dropped off the cashiers check this morning and we are mortgage and debt free.

It is a fantastic feeling. I updated my online account just now and the loans category now displays ZERO.

What a great feeling. This is a great club to be in, nice when a long term goal is met, even if is was expected.

I hope everything is going well with you others. Set goals and keep moving forward!

Swanee and the Mrs. Swanee


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markbike528CBX

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Re: Mortgage Payoff Club!!
« Reply #2170 on: February 09, 2021, 06:37:27 PM »
Hey @swaneesr , could not have said the quote below better.
Go do the barefoot lawn dance on your very own ground.  Or the barefoot snow dance....just don't get frostbite.  Congratulations!!!
  I concur.


Trifele

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Re: Mortgage Payoff Club!!
« Reply #2171 on: February 10, 2021, 02:04:48 AM »
It is done.

DW and I dropped off the cashiers check this morning and we are mortgage and debt free.

It is a fantastic feeling. I updated my online account just now and the loans category now displays ZERO.

What a great feeling. This is a great club to be in, nice when a long term goal is met, even if is was expected.

I hope everything is going well with you others. Set goals and keep moving forward!

Swanee and the Mrs. Swanee


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Woo hoo!!!  Congrats!

alcon835

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Re: Mortgage Payoff Club!!
« Reply #2172 on: February 10, 2021, 06:29:49 AM »
It is done.

DW and I dropped off the cashiers check this morning and we are mortgage and debt free.

It is a fantastic feeling. I updated my online account just now and the loans category now displays ZERO.

What a great feeling. This is a great club to be in, nice when a long term goal is met, even if is was expected.

I hope everything is going well with you others. Set goals and keep moving forward!

Swanee and the Mrs. Swanee


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YEAAAAAAAAAAHHHH!!!!! Congratulations!!! What a HUGE accomplishment!

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2173 on: February 10, 2021, 08:24:59 PM »
It is done.


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And yet, freedom is just beginning!   Congrats!!

swaneesr

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Re: Mortgage Payoff Club!!
« Reply #2174 on: February 11, 2021, 05:26:50 AM »
Thank you all!

Whos up next?


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Lilium

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Re: Mortgage Payoff Club!!
« Reply #2175 on: February 20, 2021, 04:41:28 PM »
So envious of all of you that are done with this journey!

Put all the returned from the mortgage companies back into it.  Will have some tax return money to put to it next month, but after that, it'll be the long slog.

Start: 168,090
Extra payment March: 6979

New balance: 157,411

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2176 on: February 23, 2021, 09:04:05 PM »
@Lilium,  About 10% off the top in a couple of months is awesome!  It's amazing what you can put towards it quicker than you think following MMM methods you learn from the forums here to change budgets, savings rate and setting milestone goals and rewarding you (and yours who buy-in) along the way...   And think about cash and other after-tax equity accounts in the market...   How quickly will you use those assets to kill that debt (leaving a 3-6 month emergency fund aside is plenty) AND then save to get back to those after tax balances with the right discipline...  Be brave, kill the debt, be free.   Accelerate wealth building from there.  IT WORKS!