Author Topic: Mortgage Payoff Club!!  (Read 662039 times)

moneypitfeeder

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Re: Mortgage Payoff Club!!
« Reply #1950 on: January 13, 2020, 03:03:47 PM »
That's great @paulkots !!!

gaja

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Re: Mortgage Payoff Club!!
« Reply #1951 on: February 01, 2020, 03:42:14 PM »
Starting: $165 000
1/12/2019: $158 000
1/01/2020: $157 000
1/02/2020: $155 000

Steveray7071

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Re: Mortgage Payoff Club!!
« Reply #1952 on: February 04, 2020, 01:21:17 PM »
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

Down to $75K!

moneypitfeeder

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Re: Mortgage Payoff Club!!
« Reply #1953 on: February 05, 2020, 03:46:46 PM »

Down to $75K!

Awesome job! Crossing under the 6-digit threshold feels great!

Askel

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Re: Mortgage Payoff Club!!
« Reply #1954 on: February 05, 2020, 04:15:08 PM »
And done (I think), although not really feeling the high. My mortgage was pretty small, so it was more an annoyance just having that around every month more than a significant impact on the finances. 

Anyway, mortgage payoff scenarios are clearly not test cases for my mortgage company's web developers.  I was in no rush to get this done, so rather than incur any fees in getting a payoff quote, I just went to pay whatever was left on the principal and let everything sort itself out in the next billing cycle. 

Except apparently you can't pay more than 95% of your remaining principal through the web.  OK, I'll just do that. I'll owe them $40 instead of $4 next month.   (I did consider being a jerk and paying 95% over and over until I got it down to 1 cent though.)

Log in later that afternoon to see it applied as a "partial payment" and a balance due next month of -$510. Uh... OK. Call customer service, they say they'll re-apply as a principal payment and it'll need supervisor approval which takes 24-48 hours. 

Supervisor must've figured it out. Logged in this morning to a "Congratulations, your loan is fully paid off." So I guess I'm done, although my payment history is now a warzone of small, inexplicable "partial payments" and "escrow payments".  Somebody probably gets to sort that mess out on Monday. 

Happy birthday to me.

Well that didn't take long. I'm back in the club. :D 

It was a nice year mortgage free, but I had to do what any good American does when they pay off a loan- go get another one. And bigger!

But hopefully 2/3 will be wiped out when the old house is sold.

Even though my net worth is still very much in the black, having that big negative number on my balance sheet brought back all kinds of debt related anxiety. 

Got a good rate, so there's no mathematical reason to pay it off right away, but I'll probably do so anyway. 

Keep plugging away everybody. Having no mortgage gave us the freedom to buy a really weird house in a great location. No way I would have done this and tried to balance two mortgages. 

« Last Edit: February 05, 2020, 04:16:52 PM by Askel »

SwordGuy

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Re: Mortgage Payoff Club!!
« Reply #1955 on: February 05, 2020, 04:43:49 PM »
Made the first of what I hope will be no more than 25 payments to pay off our new mortgage.

Depends on what we sell our old home for and how quickly.    Might take 36 payments, might take 18.

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1956 on: February 05, 2020, 07:17:34 PM »
It was a nice year mortgage free, but I had to do what any good American does when they pay off a loan- go get another one. And bigger!

Hahah...my antitote to this phenomenon is to immediately scale back my work hours so my salary reduction is commensurate with the lack of mortgage payment.  This way we can't really afford to move somewhere bigger/nicer even if we get tempted.  Plus downshifting -- however minor -- is another baby step toward RE.

Anyway, congrats (or condolences?) on the cool new place.  Good luck plowing ;)

KBecks

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Re: Mortgage Payoff Club!!
« Reply #1957 on: February 06, 2020, 06:43:45 AM »
I think it's a very common temptation to think about getting a bigger property (or a 2nd property) after the mortgage is paid off.

Our lives are so wrapped up in our local area that it would be difficult to move, plus, there's still so much stuff!  And real estate agent fees.


talltexan

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Re: Mortgage Payoff Club!!
« Reply #1958 on: February 06, 2020, 07:36:18 AM »
Made the first of what I hope will be no more than 25 payments to pay off our new mortgage.

Depends on what we sell our old home for and how quickly.    Might take 36 payments, might take 18.

All the data suggest that the housing market is strong in the SE. I also am trying to sell a property in Charlotte. Good luck!

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1959 on: February 08, 2020, 08:54:08 AM »
Our principal balance got down to < $14k this month, and we impulsively decided to wipe it out yesterday afternoon.  Having never done a wire transfer before, I figured it would take several days to go through, get processed, and applied to our mortgage.  To my surprise, I logged into our mortgage account online this morning and it says our loan is paid in full.  w00t!

With ~$2,900 coming off the books (P&I) each month, I can now switch to a PT schedule if I so desire.  We'll probably build up our cash buffer a little more before I do so, but I'm thrilled that I've reached this milestone in our FI(RE?) journey.

mies

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Re: Mortgage Payoff Club!!
« Reply #1960 on: February 08, 2020, 09:13:32 AM »
Our principal balance got down to < $14k this month, and we impulsively decided to wipe it out yesterday afternoon.  Having never done a wire transfer before, I figured it would take several days to go through, get processed, and applied to our mortgage.  To my surprise, I logged into our mortgage account online this morning and it says our loan is paid in full.  w00t!

With ~$2,900 coming off the books (P&I) each month, I can now switch to a PT schedule if I so desire.  We'll probably build up our cash buffer a little more before I do so, but I'm thrilled that I've reached this milestone in our FI(RE?) journey.

Congratulations!  Being mortgage free really simplifies your life.

We paid off our house on whim like that too :D the balance was too low to not just end it.

We had to jump through more hoops for our final payment though. I had to call the bank to get a specific payoff amount and drop off the check. Our lender was local so I could just go to our local bank branch and make the final payment.

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1961 on: February 08, 2020, 09:38:01 AM »
Congratulations!  Being mortgage free really simplifies your life.

We paid off our house on whim like that too :D the balance was too low to not just end it.

We had to jump through more hoops for our final payment though. I had to call the bank to get a specific payoff amount and drop off the check. Our lender was local so I could just go to our local bank branch and make the final payment.

Thank you!  Yeah, once we realized we had enough in our slush fund to knock it out, I got very antsy and did what I needed to make it happen.

Despite the payoff processing quickly, we did encounter a few kinks in the process.  The lender side (Quicken Loans) was great.  I did have to call to request the official payoff figure, but I was only on the phone for 5 minutes or so.  I logged onto my mortgage account after I hung up the phone, and the payoff letter had already been uploaded with everything I needed.

On the payment side (Discover bank online), it was a little less smooth.  After I initiated the wire transfer online, the system said I had to call and authorize the transfer.  On the phone it took Discover about a half hour to verify my identity.  It was really a comedy of ridiculous technical errors on their part, but finally they accepted an uploaded picture of my driver's license as proof.

Big picture, I was pleased that I started the payoff process after lunch yesterday, and by this morning everything was processed.

talltexan

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Re: Mortgage Payoff Club!!
« Reply #1962 on: February 10, 2020, 12:41:55 PM »
congratulations, guys!

moneypitfeeder

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Re: Mortgage Payoff Club!!
« Reply #1963 on: February 10, 2020, 03:27:30 PM »
Congrats all! I'm antsy to pull the plug sooner too, but SO thinks we should just stay with the plan I set up. $19,000-ish left to go. Should be able to join you in 5 months!

Bird In Hand

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Re: Mortgage Payoff Club!!
« Reply #1964 on: February 11, 2020, 08:39:25 AM »
Thanks @talltexan and @moneypitfeeder

Congrats all! I'm antsy to pull the plug sooner too, but SO thinks we should just stay with the plan I set up. $19,000-ish left to go. Should be able to join you in 5 months!

I'd say that it's probably more important to respect SO than to cut 5 months down to 1-4 months.  :)

I was lucky that my wife was fine with just killing our mortgage ~5 months early once it was sub $14k.  If she hadn't been, I probably would have been a bit antsy too.  But 6 months flies by.