Author Topic: Mortgage Payoff Club!!  (Read 409461 times)

mies

  • Bristles
  • ***
  • Posts: 310
Re: Mortgage Payoff Club!!
« Reply #500 on: October 09, 2015, 05:51:53 PM »
Nice work Bellatrix! I constantly check my amortization schedule too. I'm always calculating the numbers in my head :) If I can do a little extra principal this month, next month's regular payment will be that much more productive.
Less is more.

Bellatrix

  • 5 O'Clock Shadow
  • *
  • Posts: 27
Re: Mortgage Payoff Club!!
« Reply #501 on: October 09, 2015, 06:59:52 PM »
Nice work Bellatrix! I constantly check my amortization schedule too. I'm always calculating the numbers in my head :) If I can do a little extra principal this month, next month's regular payment will be that much more productive.

Thanks!  I get so excited when my paycheck is higher than expected... it means I get to tackle more of my mortgage.  I get so mad when I see how much I am paying in interest every month (down to about $800 now). 

Looks like 2018 will be a good year for both of us. 

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #502 on: October 09, 2015, 07:38:42 PM »
Nice work Bellatrix! I constantly check my amortization schedule too. I'm always calculating the numbers in my head :) If I can do a little extra principal this month, next month's regular payment will be that much more productive.

Thanks!  I get so excited when my paycheck is higher than expected... it means I get to tackle more of my mortgage.  I get so mad when I see how much I am paying in interest every month (down to about $800 now). 

Looks like 2018 will be a good year for both of us.

Dec. 2018 will be here before you know it, awesome that you have a goal date for payoff!
FIRE in 2020.

Mrwannabemmm

  • 5 O'Clock Shadow
  • *
  • Posts: 9
Re: Mortgage Payoff Club!!
« Reply #503 on: October 09, 2015, 11:56:46 PM »
Thanks k ice . I resonate with your advice too. I am planning to pay off mortgage down too till I have 100 k left. Planning to keep  100 k for getting another mortgage on a rental income. Then work on paying rest of mortgage and then the rental mortgage .

This was I will pay of one mortgage and then have another one to motivate me even more since that will create passive cash flow .

Mrwannabemmm

  • 5 O'Clock Shadow
  • *
  • Posts: 9
Re: Mortgage Payoff Club!!
« Reply #504 on: October 10, 2015, 12:02:26 AM »
My saving account almost pays nothing , mortgage is 3.87 percent .
Maxing out my 401k but do not have any 529 for kids yet .



manonfire1007

  • 5 O'Clock Shadow
  • *
  • Posts: 40
  • Age: 41
Re: Mortgage Payoff Club!!
« Reply #505 on: October 10, 2015, 08:26:11 PM »
I bought mine last year for 271k at 5% fixed with no points (long story). Have it on a 15 year. Should have it done in 58 months as I have a similar amount in student loans to kill first.

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #506 on: October 11, 2015, 11:36:37 AM »
I bought mine last year for 271k at 5% fixed with no points (long story). Have it on a 15 year. Should have it done in 58 months as I have a similar amount in student loans to kill first.

ON FIRE is right! Excellent, excellent, excellent.
FIRE in 2020.

manonfire1007

  • 5 O'Clock Shadow
  • *
  • Posts: 40
  • Age: 41
Re: Mortgage Payoff Club!!
« Reply #507 on: October 11, 2015, 07:05:10 PM »
If I could burn it down faster, I would. That said, I would then have to add alimony to the expenses. Probably an unwise choice.

RNwastash

  • 5 O'Clock Shadow
  • *
  • Posts: 83
  • Location: Fresno, CA
Re: Mortgage Payoff Club!!
« Reply #508 on: October 15, 2015, 08:27:29 PM »
Made a small $500 extra payment.  Down to $123,536.82!!

cdub

  • Stubble
  • **
  • Posts: 167
    • Mortgage Payoff Club
Re: Mortgage Payoff Club!!
« Reply #509 on: October 16, 2015, 12:55:56 AM »
I moved the Mortage Payoff Club blog from WordPress (which I hated) to a XenForo community which I know and love.

I also got it a much better domain.

Here it is:

http://mortgagepayoff.club/

I hope you like it.

Congrats to everyone on their progress!

Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

mom22boys

  • Stubble
  • **
  • Posts: 180
Re: Mortgage Payoff Club!!
« Reply #510 on: October 16, 2015, 09:49:04 AM »
My mortgage is still sitting around 156k, but I did sign on my refinance this morning, which was a good feeling.  Of course I'm not planning to pay off over 15 years but more like 5-7 years. :-) 

One victory is that last week I put an additional 10K against the special assessments on my house.  I didn't include that in my original post.  After that pay off, I'll be down to around 20K for the specials.  About half of that is at a pretty low interest rate (similar to mortgage) so I won't pay that off early.  I'm even thinking about just letting the full 20K ride, and instead move over to paying down the mortgage instead.  While I plan to be in this house for at least 10 years, I don't really see me recouping the specials when I sell. Plus, the new lucky owner would assume what's remaining of that debt.  What do others here do with specials?  Do you treat specials just like other debt and pay it off based on the interest rates?

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #511 on: October 16, 2015, 11:05:15 AM »
My mortgage is still sitting around 156k, but I did sign on my refinance this morning, which was a good feeling.  Of course I'm not planning to pay off over 15 years but more like 5-7 years. :-) 
...

hey mom22 - anything particular you can share about your refi? What interest rate, points, closing costs? Did you do anything like get quotes through lendingtree.com? Thanks for any info you can share!
FIRE in 2020.

mom22boys

  • Stubble
  • **
  • Posts: 180
Re: Mortgage Payoff Club!!
« Reply #512 on: October 16, 2015, 11:19:07 AM »
mefla - No prob on the info.  I moved to a 15 year at 3.375.  No points, and $245 closing costs, most of which was the daily interest until the end of the month.  I could have gotten a lower interest rate, but didn't want to pay for points or high closing costs. The refi was through AimLoan.com.  Originally I went through LendingTree and I wish I hadn't.  Phone calls and email NON-STOP.  It was super annoying.  I had posted some questions on another thread and someone recommended AimLoan. They were really good to work with and came in at the lower rates/closing costs. The refi was completely done in less than 3 weeks.

Uncle Scrooge

  • 5 O'Clock Shadow
  • *
  • Posts: 53
  • Age: 34
  • Location: USA
Re: Mortgage Payoff Club!!
« Reply #513 on: October 16, 2015, 01:08:03 PM »
Can confirm. Lending Tree was awful. Non stop calls for the first week or two.....and some are super aggressive salesmen.

I also looked into AIM Loans about a week to 10 days ago. We just had the appraiser at our house yesterday and I'm well on my way to refinancing. So far so good...

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #514 on: October 16, 2015, 01:13:57 PM »
re: AimLoans - INTERESTING! THANK YOU for the info, I'll check 'em out!
FIRE in 2020.

peoria

  • 5 O'Clock Shadow
  • *
  • Posts: 37
Re: Mortgage Payoff Club!!
« Reply #515 on: October 16, 2015, 01:59:40 PM »
Refi in march of 2015 with first payment due on May 1, 2015.
$317,000 at 3.125%

We arw maxing out our Simple Iras and Roth Iras, then throwing everything extra at the mortgage.

We are down to $271,250 as of now.  We are trying to pay off another $15k by year end ( Christmas bonuses). Goal by 12/31 is 256,250.


birdman2003

  • Bristles
  • ***
  • Posts: 282
  • Location: Iowa
Re: Mortgage Payoff Club!!
« Reply #516 on: October 16, 2015, 03:10:57 PM »
My original mortgage was for $70k in 2012 (15 years @ fixed 3%) and now I think the principal balance is somewhere around $65k.  Obviously I have never made extra payments.  I think I will do that next year as I have extra monies not spoken for!

Thanks for the jumpstart to do this!

Still haven't made additional payments, but I do have a 15 year mortgage so it's like fixed double payments on a 30 year mortgage.  Remaining balance is now at $58k

PFHC

  • Pencil Stache
  • ****
  • Posts: 617
  • Age: 38
  • Location: Midcoast Maine
  • Busy doing.
Re: Mortgage Payoff Club!!
« Reply #517 on: October 16, 2015, 05:30:51 PM »
Initial mortgage was for $150k, 30 years at 3.5%.
Currently at $134k.
Just ran the numbers and shooting for an end date of Sep, 2018. Here we go!

cdub

  • Stubble
  • **
  • Posts: 167
    • Mortgage Payoff Club
Re: Mortgage Payoff Club!!
« Reply #518 on: October 17, 2015, 12:17:17 AM »
Can confirm. Lending Tree was awful. Non stop calls for the first week or two.....and some are super aggressive salesmen.

I also looked into AIM Loans about a week to 10 days ago. We just had the appraiser at our house yesterday and I'm well on my way to refinancing. So far so good...

I had a good experience with Quicken Loans. I refinance with them 2 years ago.

(be sure to check out my site that is perfect for people on this thread http://mortgagepayoff.club/)

I'm working on around $260k 30 year fixed at 3.99 right now.
Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #519 on: October 17, 2015, 07:14:19 PM »
Initial mortgage was for $150k, 30 years at 3.5%.
Currently at $134k.
Just ran the numbers and shooting for an end date of Sep, 2018. Here we go!

Hey PFHC: I am aiming to have mine done in that timeframe. Maybe we set a Dec. 2018 Goal Date and move it around if needed?
FIRE in 2020.

cdub

  • Stubble
  • **
  • Posts: 167
    • Mortgage Payoff Club
Re: Mortgage Payoff Club!!
« Reply #520 on: October 18, 2015, 11:25:34 PM »
Initial mortgage was for $150k, 30 years at 3.5%.
Currently at $134k.
Just ran the numbers and shooting for an end date of Sep, 2018. Here we go!

Hey PFHC: I am aiming to have mine done in that timeframe. Maybe we set a Dec. 2018 Goal Date and move it around if needed?

Wow that's pretty good. How much extra per month are you throwing at it?
Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

indentured4now

  • Bristles
  • ***
  • Posts: 275
Re: Mortgage Payoff Club!!
« Reply #521 on: October 19, 2015, 06:47:48 AM »
I'm going to put a chunk towards my mortgage beast and would appreciate some advice...   Anyone have experience with Third Federal for HELOC, fixed equity loan or a first mortgage?    If my current first mortgage holder won't allow a recast, I saw these guys on bankrate site and their rates are a full percent lower with fixed equity loan and shorter amortization.    What's the catch?   Their reviews on BBB and other sites are mixed...  If they stink, pls keep the cursing to less than 10 F-bombs a sentence please!  ;-)

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #522 on: October 19, 2015, 08:07:22 AM »
Initial mortgage was for $150k, 30 years at 3.5%.
Currently at $134k.
Just ran the numbers and shooting for an end date of Sep, 2018. Here we go!

Hey PFHC: I am aiming to have mine done in that timeframe. Maybe we set a Dec. 2018 Goal Date and move it around if needed?
Wow that's pretty good. How much extra per month are you throwing at it?

Hey cdub: my income is "lumpy" so I don't do a set amount per month, but I'm reaching $30k in 2015. I'd like to go even more in 2016, but I'd have to cut into my Roth IRA, not sure I wanna do that. Both the wife and I are working right now and I've got our expenses trimmed out enough that we can throw a lot of our income at it.
FIRE in 2020.

K-ice

  • Pencil Stache
  • ****
  • Posts: 701
  • Location: Canada
Re: Mortgage Payoff Club!!
« Reply #523 on: October 19, 2015, 11:27:30 AM »
I'm going to put a chunk towards my mortgage beast and would appreciate some advice...   Anyone have experience with Third Federal for HELOC, fixed equity loan or a first mortgage?    If my current first mortgage holder won't allow a recast, I saw these guys on bankrate site and their rates are a full percent lower with fixed equity loan and shorter amortization.    What's the catch?   Their reviews on BBB and other sites are mixed...  If they stink, pls keep the cursing to less than 10 F-bombs a sentence please!  ;-)

I do not know about them in particular. But I had a mixed mortgage HELOC from my bank and it gave me the added confidence that I could throw big chunks at the mortgage but still have access to a squishy emergency fund. Luckily, I never needed the HELOC, but I would highly recommend it. 

mies

  • Bristles
  • ***
  • Posts: 310
Re: Mortgage Payoff Club!!
« Reply #524 on: October 19, 2015, 04:34:56 PM »
I'll be throwing another $2500 at my mortgage principal this week. That will get the principal portion of our regular monthly payment ($816) over $600.

The next short term goal on the mortgage is getting the monthly interest under $200. I want to get these monthly payments as productive as possible :)
Less is more.

Neustache

  • Handlebar Stache
  • *****
  • Posts: 1097
Re: Mortgage Payoff Club!!
« Reply #525 on: October 19, 2015, 06:16:50 PM »
^nice, mies!  I will be happy when my principal payment is more than my interest payment, but you are doing great!

pdxmonkey

  • Bristles
  • ***
  • Posts: 268
Re: Mortgage Payoff Club!!
« Reply #526 on: October 19, 2015, 07:32:00 PM »
I've been working at my mortgage for a while now. I originally had a 30 yr $146000 loan. In 2012 I refinanced into a 15 yr @ 2.875%. As of today I have about $67,500 remaining.

I flip flop between investing more and paying off the mortgage. I have been maxing out my contributions to a Roth IRA since my mid 20's and last year I maxed out my 401k (Roth) for the first time and will be doing so again this year. I had always considered retiring early, but have only recently considered retiring extremely early and finally about 2 months ago opened up a taxable investment account in addition to my 401k and IRA accounts as I'll need money outside those accounts to live on. I've put some money into this and started paying the mortgage down less aggressively although still more than the minimum payment. I really want to get it paid off even though mathematically it is not necessarily the best idea. If P/E ratio goes lower on the market I will probably not pay any extra on the mortgage.

cdub

  • Stubble
  • **
  • Posts: 167
    • Mortgage Payoff Club
Re: Mortgage Payoff Club!!
« Reply #527 on: October 20, 2015, 10:39:07 PM »
I'll be throwing another $2500 at my mortgage principal this week. That will get the principal portion of our regular monthly payment ($816) over $600.

The next short term goal on the mortgage is getting the monthly interest under $200. I want to get these monthly payments as productive as possible :)

That's awesome. I'm hoping to be able to start sending that much $$$ at my mortgage soon enough.
Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

mies

  • Bristles
  • ***
  • Posts: 310
Re: Mortgage Payoff Club!!
« Reply #528 on: October 21, 2015, 02:05:02 AM »
Thanks cdub and neustache! October has been a fairly inexpensive month so far which has helped. I may or may not be able to do an extra a principal payment in November because of this one. I'm ok with that.
Less is more.

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #529 on: October 21, 2015, 01:11:22 PM »
On track for a nice little principal abatement payment for that third paycheck in October. Been accumulating post-tax savings the entire month of STOCKTOBER. Looking forward to getting much closer to the Sacred Refinance Objective for January, 2016!

The plan is to refinance in January to a 10 or 8 year mortgage under 2.875%.  It's possible interest rates won't go down in January 2016. If not, then we don't refi, we just keep pushing hard as we can go.

« Last Edit: October 21, 2015, 11:37:13 PM by mefla »
FIRE in 2020.

Jon_Snow

  • Magnum Stache
  • ******
  • Posts: 4125
  • Location: An Island in the Salish Sea (or Baja)
  • Prawnmaster
Re: Mortgage Payoff Club!!
« Reply #530 on: October 21, 2015, 02:58:53 PM »
Never looked at this thread before. Just want to say to everyone that you are kicking all sorts of mortgage-ass!

We killed our mortgage about 5 years before I FIRE'd...really, that was the point at which it was "all systems go" to FI...and beyond. This thread provides wonderful nostalgia and a nice reminder about the excitement created by watching a mortgage balance dwindle until it is GONE.

cdub

  • Stubble
  • **
  • Posts: 167
    • Mortgage Payoff Club
Re: Mortgage Payoff Club!!
« Reply #531 on: October 21, 2015, 11:05:44 PM »
Never looked at this thread before. Just want to say to everyone that you are kicking all sorts of mortgage-ass!

We killed our mortgage about 5 years before I FIRE'd...really, that was the point at which it was "all systems go" to FI...and beyond. This thread provides wonderful nostalgia and a nice reminder about the excitement created by watching a mortgage balance dwindle until it is GONE.

Yes that's my goal too. I want to kick the mortgage payoff into high gear asap. I'm hoping to have that same joy and excitement too. :)
Join the Mortgage Payoff Club:
http://mortgagepayoff.club/

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #532 on: October 21, 2015, 11:43:13 PM »
We killed our mortgage about 5 years before I FIRE'd...really, that was the point at which it was "all systems go" to FI...and beyond. This thread provides wonderful nostalgia and a nice reminder about the excitement created by watching a mortgage balance dwindle until it is GONE.

Jon - thanks for chiming in on this thread. It truly helps when someone who is already FIRE touches back base to let us know we are on the right track.
FIRE in 2020.

YoungGranny

  • Bristles
  • ***
  • Posts: 375
  • Age: 27
Re: Mortgage Payoff Club!!
« Reply #533 on: October 23, 2015, 11:23:47 AM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.
Journal:
https://forum.mrmoneymustache.com/journals/young-granny's-life/

Personal Capital referral: http://share.personalcapital.com/x/s8istT

We both get a $20 Amazon gift card if you sign up and it's a great website to see net worth and investment trends.

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #534 on: October 23, 2015, 01:21:00 PM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.

ROCK ON YoungGranny! Same here, I've got the refi goal for January. You are right, you need an interim goal or a milestone to work to, so you can "feel the progress".
FIRE in 2020.

K-ice

  • Pencil Stache
  • ****
  • Posts: 701
  • Location: Canada
Re: Mortgage Payoff Club!!
« Reply #535 on: October 23, 2015, 03:14:34 PM »
We killed our mortgage about 5 years before I FIRE'd...

I would like to think I am on the same track. Mtg is gone as of last year and maybe 4-5 years until FI maybe RE.

I wonder if there is some math behind that?  If you can kill the mtg, then keep saving those payments in investments for 5 years after being mtg free. At that point it is probably a good time to retire. It would all depend on how big your mortgage payments were....

mies

  • Bristles
  • ***
  • Posts: 310
Re: Mortgage Payoff Club!!
« Reply #536 on: October 23, 2015, 06:25:54 PM »
Refinance is complete! Mortgage balance is $131,500. Decided my goal will be to get it under $100k in 1 year. Hopefully completely paid off in 5 years or less but I think I need a short-term goal to focus on for motivation.

Breaking it up in to smaller goals is a great idea YoungGranny. There are a lot of ways to do it. You can aim for a certain amount of principal to be gone by the end of the year. You can try to get the principal portion of your monthly payment up to a certain amount. You can try to get the interest portion of your monthly payment under a certain amount.
 
I've found using amortization calculators that are available online help me to set these types of goals. It helps make the money you are saving seem more real too since it's laid out in front of you in black and white.
Less is more.

indentured4now

  • Bristles
  • ***
  • Posts: 275
Re: Mortgage Payoff Club!!
« Reply #537 on: October 23, 2015, 10:59:17 PM »
The latest...   The option of cash in $135K and refi to a HELOC is boiling down to choosing either a 3% fixed equity loan or 4-ish% flexible HELOC line with options on fixed and flexible draws in the loan.    The following are rough numbers so don't pick...   A 15 year amortization on a fixed loan drops the monthly interest $300 a month and the total P+I monthly nut from $1100 to just under $600 after the cash in.   No risk on the $130k ever after and that frees up $500+ monthly cash flow and saves $250 in the remaining HELOC balance's interest amortization (despite higher % rate), and the ability to accelerate the $100k payoff to meet my "done in '21" FIRE goal.   I know investing could grow $130K faster but we save well already to catch back up and I sleep better.    Do it??

Imonaboat

  • 5 O'Clock Shadow
  • *
  • Posts: 44
  • Location: Southeast Texas
Re: Mortgage Payoff Club!!
« Reply #538 on: October 26, 2015, 02:53:04 AM »
Paid off our home last month ;)

We spent 2 years looking for the perfect house, saving tons of money while occasionally submitted very low ball offers on a house we liked. We finally found the perfect house and they accepted an offer of $200,000, down from the asking price of $235k. Since we had been saving for 2 years I was able to put 50% plus closing costs down.

After we moved in we made a budget based on the least amount of money I could possible earn. Everything extra went into the house, including last years tax return and my retention bonus plus a few weeks of unexpected overtime work. I also put in 2 full paychecks since we receive 26 per year.

First payment on the $100,000 mortgage was on June 16th, 2014
Final payoff payment was on October 6th 2015

Ended up paying about $6,000 for the loan including interest (3.625% @ 15 years).

Age 33
Married with 2 children
Total family salary around $120,000
Net worth was below $30k 4 years ago, Around $275k today with no outside sources of income.

Next step is reducing our budget further/again (It started slipping as soon as we were close to paying the house off) and to start investing
« Last Edit: October 26, 2015, 03:14:45 AM by Imonaboat »

YoungGranny

  • Bristles
  • ***
  • Posts: 375
  • Age: 27
Re: Mortgage Payoff Club!!
« Reply #539 on: October 26, 2015, 06:42:40 AM »
mefla - any reason you're waiting until January to refinance? Just out of my own curiousity :)

mies - I LOVE amortization tables :) I actually enjoy building my own in excel so I can track numbers better and it's how I convinced my SO to pay down the mortgage faster and refinance. We're on track to pay $20,000 in interest over the life of the loan vs the $130,000 originally projected with our 30 year mortgage. (plus $1,400 we paid in PMI but at least that's off now....face punch for sure!)


Congratulations Imonaboat! Must feel nice to have that sucker paid off!!
Journal:
https://forum.mrmoneymustache.com/journals/young-granny's-life/

Personal Capital referral: http://share.personalcapital.com/x/s8istT

We both get a $20 Amazon gift card if you sign up and it's a great website to see net worth and investment trends.

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #540 on: October 27, 2015, 10:42:24 PM »
mefla - any reason you're waiting until January to refinance? Just out of my own curiousity :)

mies - I LOVE amortization tables :) I actually enjoy building my own in excel so I can track numbers better and it's how I convinced my SO to pay down the mortgage faster and refinance. We're on track to pay $20,000 in interest over the life of the loan vs the $130,000 originally projected with our 30 year mortgage. (plus $1,400 we paid in PMI but at least

YoungGranny: two reasons:
1) Principal will be at-or-below $100k, so a refi will free up at least $400/month of cash flow. We will then be able to live on one salary and save the other.
2) it has been my experience that interest rates are at their lowest in January-February months.
FIRE in 2020.

freeatlast

  • 5 O'Clock Shadow
  • *
  • Posts: 66
Facing Layoff but I am in Re: Mortgage Payoff Club!!
« Reply #541 on: October 29, 2015, 01:29:33 PM »
I may be facing a layoff, but luckily I have another income stream. If it happens, things will be tight but ok til I can get another gig. Even if I don't get layed off, I will likely leave cause the job is causing anxiety and is soul sucking.....

I have reduced my 30 year fixed at 3.625 from $262k to $222k. I can get it down to $200k with cash on hand still having a cushion of a few months emergency fund. 

Doing the math, if I reduce to $200k at 15 years with an APR of 3, my payments only go up a couple hundred bucks which we are paying in extra anyway.  So I am thinking I need to refi right NOW while I still am employed (layoffs wouldn't be til 2016 first quarter).

If I can pay this sucker off, then I am fully FI..... Gonna do it no matter what!

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Facing Layoff but I am in Re: Mortgage Payoff Club!!
« Reply #542 on: October 29, 2015, 06:25:19 PM »
I may be facing a layoff, but luckily I have another income stream. If it happens, things will be tight but ok til I can get another gig. Even if I don't get layed off, I will likely leave cause the job is causing anxiety and is soul sucking.....

You must be employed in high-tech too. :-/

Quote
I have reduced my 30 year fixed at 3.625 from $262k to $222k. I can get it down to $200k with cash on hand still having a cushion of a few months emergency fund. 

Remarkable! I don't know where you are located, but in the Southeast US, you will have gone from "Jumbo" territory into "Normal loan" territory, so you might be able to get under 3% (depending on your FICO).

Quote
Doing the math, if I reduce to $200k at 15 years with an APR of 3, my payments only go up a couple hundred bucks which we are paying in extra anyway.  So I am thinking I need to refi right NOW while I still am employed (layoffs wouldn't be til 2016 first quarter).

Not a bad idea! Historically, lower interest rates are available Nov - January:
http://www.freddiemac.com/pmms/pmms30.htm
FIRE in 2020.

Bee21

  • Bristles
  • ***
  • Posts: 408
Re: Mortgage Payoff Club!!
« Reply #543 on: October 29, 2015, 08:27:41 PM »
 We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Faraday

  • Handlebar Stache
  • *****
  • Posts: 1197
  • Age: 56
  • Location: NC
  • Solar Powered Slice
Re: Mortgage Payoff Club!!
« Reply #544 on: October 29, 2015, 11:20:17 PM »
We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Wow! Great to watch someone actually get there!
FIRE in 2020.

Philodendron

  • 5 O'Clock Shadow
  • *
  • Posts: 41
Re: Mortgage Payoff Club!!
« Reply #545 on: October 30, 2015, 10:11:41 AM »
We are getting very close to the finish line (<5000). I am pestering the man to book the meeting with the bank early December to finalise this before Christmas. And then, we will be co-owners no more. Somebody once wrote that paying off the mortgage is addictive, I am slightly obsessed with reducing the balance now.

Wow! Great to watch someone actually get there!

Agreed! I'm so excited for you :)

Also, I so hear you on the addictiveness of paying it off.

FerrumB5

  • Pencil Stache
  • ****
  • Posts: 515
  • Location: Illinois
Re: Mortgage Payoff Club!!
« Reply #546 on: October 30, 2015, 10:26:52 AM »
My *first* mortgage bill is due Nov. 1st, 2015.
225k for 20 years at 3.625%

I calculated that if I throw extra $100 each month towards principal, I save ~10k in interest and 1yr11mo in length. Let's round to 2 years, so mortgage length is 18 years.
Now, if I start from $3k, buy VSMTX and add $100 each month to it, in same 18 years my interest (given average 7%/yr) is $29k.

Net gain is $19k in favor of investing vs mortgage extra payments. Does it make sense to go this way? Am I doing the right math or did I not take into account some factors?

Clean Shaven

  • Pencil Stache
  • ****
  • Posts: 740
  • Location: Wild Wild West
Re: Mortgage Payoff Club!!
« Reply #547 on: October 30, 2015, 11:34:26 AM »
My *first* mortgage bill is due Nov. 1st, 2015.
225k for 20 years at 3.625%

I calculated that if I throw extra $100 each month towards principal, I save ~10k in interest and 1yr11mo in length. Let's round to 2 years, so mortgage length is 18 years.
Now, if I start from $3k, buy VSMTX and add $100 each month to it, in same 18 years my interest (given average 7%/yr) is $29k.

Net gain is $19k in favor of investing vs mortgage extra payments. Does it make sense to go this way? Am I doing the right math or did I not take into account some factors?
1) Does that net $19k gain factor in the $3k initial Vanguard purchase?  (did you also apply a $3k first extra payment of principal to the mortgage?)

2) Mathematically, a 7% average return on investment achieves a better outcome than prepaying a 3.625% mortgage. Nobody disputes this. The gray area where all the debate lies is your own personal comfort with that leveraged investment, vs. a guaranteed return by prepayment.

Me, I'm prepaying like crazy on a 30-year 3.5% note, which I hope to have completely paid in January 2016. Did I lose $ over the last 3 years (the duration of the mortgage so far) by doing this, rather than investing? Absolutely. But the market could have gone the other way and crashed in 2013-2014.  I'm saving plenty in other investments too, so I'm comfortable with these choices.

FerrumB5

  • Pencil Stache
  • ****
  • Posts: 515
  • Location: Illinois
Re: Mortgage Payoff Club!!
« Reply #548 on: October 30, 2015, 11:43:10 AM »
Clean Shaven - thanks! I indeed forgot to add 3k towards one time payment in calculations. The savings ar 12.6k then, so net difference is still substantial in case of direct investments.
Comfort zone? Not sure yet, as I haven't made payments yet :) I will surely refinance in the next few years - already 30 year mortgage rates are approaching my 3.625% 20 year (when I applied, 30 yr was 4.01+, now it's around 3.7).

SwordGuy

  • Magnum Stache
  • ******
  • Posts: 3937
  • Location: Fayetteville, NC
    • Flipping Fayetteville
Re: Mortgage Payoff Club!!
« Reply #549 on: October 31, 2015, 07:54:43 AM »
Paid off our home last month ;)

We spent 2 years looking for the perfect house, saving tons of money while occasionally submitted very low ball offers on a house we liked. We finally found the perfect house and they accepted an offer of $200,000, down from the asking price of $235k. Since we had been saving for 2 years I was able to put 50% plus closing costs down.

After we moved in we made a budget based on the least amount of money I could possible earn. Everything extra went into the house, including last years tax return and my retention bonus plus a few weeks of unexpected overtime work. I also put in 2 full paychecks since we receive 26 per year.

First payment on the $100,000 mortgage was on June 16th, 2014
Final payoff payment was on October 6th 2015


That's an awesome paydown rate!  Congrats!

I especially like it that you didn't "shop like a normal person" for your home.   Normal is defined as "Be in a hurry to buy.  Fall in love with a house and lose all sense of financial perspective.  Overpay.  Whine about it later."   :)

We've been looking for a new home for the last two years also.   While we were looking for rental properties we kept an eye out for ourselves.   When we found an interesting house we marked it down and kept an eye on it.   Most of them sold at a higher price than we were willing to pay.  The one we're buying in the next few weeks didn't.   We're getting our new house at 30% off the conservatively appraised value, at a price that really works for us. 

And because we remember how great it felt to pay the old mortgage off, our goal is to pay this house off faster than you did! :)

Due to circumstances we can take no credit for, that should require much less effort on our part than it did on yours.   But it will make us just as happy! :)