Author Topic: Mortgage Payoff Club!!  (Read 964878 times)

talltexan

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Re: Mortgage Payoff Club!!
« Reply #2350 on: September 20, 2022, 07:49:38 AM »
Thanks for the reply, indeed it sounds like you've been meeting these challenges with wise decisions over the past few years!

ChpBstrd

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Re: Mortgage Payoff Club!!
« Reply #2351 on: September 22, 2022, 12:04:52 PM »
I added a poll:

How high/low does a mortgage rate need to be to pay off principal early?

https://forum.mrmoneymustache.com/ask-a-mustachian/what-is-your-threshold-for-making-pre-payments-to-your-mortgage/

Dicey

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Re: Mortgage Payoff Club!!
« Reply #2352 on: September 23, 2022, 11:50:57 AM »
Thank you all for the kind words. Sorry for the late reply, my FIL lives with us and he broke his hip. We have been in a frenzy to remodel our bathrooms to make them easier for him to use with a walker and/or wheelchair if necessary. I'm pretty handy and doing much of the work myself so I have had very little downtime to check the forum. This was something we had planned to do anyway and thankfully had allocated money for it. It really does feel great to be completely debt free.

@talltexan I had always planned to retire around 55 and take withdrawals from my 401K which would have had plenty of money, too much actually. The mortgage would have had 5 more years left and I would have likely just kept it. The I found MMM and realized I could pull that date in 52 (2021) and would have done a SEPP 72T. In 2018 I was on a business trip and involved in an auto accident. Someone unsafely turned across traffic in front of me. I got a concussion that never fully resolved and left me with debilitating migraines and some vision issues. I ended up on disability. I tried to go back to work a few times, but was not able to perform at the level I had before at megacorp. When it became apparent I would likely not ever be able to I separated. Thankfully I had met the rule of 75 and officially retired and it actually ended up coinciding within a month of what I had planned for some time. My income was all over the place for about 3 years and I also hadn't been able to put much into my 401K during that time either, but I did receive disability. I finally settled my claim, but part of it meant a reduction in my benefit amount. They wanted to just take a lump sum, but I preferred them to reduce my monthly amount instead. That gave me much more control to invest some of it and use some to payoff the mortgage thus also offsetting the monthly loss. The income will remain stable now until Social Security age unless I miraculously get better. Sorry for the long winded reply.
Wow, that is a LOT to cope with. Fingers crossed for the miracle and barring that, effective meds.

LeftA

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Re: Mortgage Payoff Club!!
« Reply #2353 on: October 01, 2022, 11:28:53 AM »
I joined this thread just a month ago, as this is where you post when you get under $50K owed. With today’s payment, we’re at just over $43K! The end of our mortgage is nearing fast!

Vashy

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Re: Mortgage Payoff Club!!
« Reply #2354 on: October 01, 2022, 12:16:31 PM »
Dropped a chunk of my annual company profits into the mortgage and now at £33k. Our mortgage deal runs out this month, which would get us from a 2.5% tracker mortgage to the bank's "standard rate" (currently around 5%).

At this point, it makes no sense to get another two-year mortgage for a £1k fee - worst case, we'll pay this off in three years, best case I feel we could crush it in in 12 months' time. I'm getting a severance package from my ex-employer that would take care of the whole remaining debt, though I'm loath to reduce my financial flexibility that much, so I'll likely just drop in £10k or so at the end of the year and carry the rest of it for another year. With the UK capital markets in turmoil because we have a bunch of lunatics in charge of the asylum, I'm planning for every contigency.

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2355 on: October 15, 2022, 08:19:48 PM »
@LeftA and @Vashy   This thread AFAIK was the original for any mortgage going way back, but over time, the "bracket threads" popped up to share experiences with others in the same stages.    All good to post here anyway...   You're both close on the mortgages, so great job!   

With an economy heading towards recession as we're all being led to believe anyway, can you use all available cash and open a HELOC for the emergency back up just in case?    Saving guaranteed 5% interest (which is after tax money you're paying more like 7% or more) by paying off now, then keeping the flexibility of the HELOC for job change "gaps" and other dramas of life is a good way to get to debt free NOW with some hedge just in case for the future...   Think of it this way... Would you take out a new mortgage for that amount right now just to put cash in the stock market or a savings account for the next couple of years?

Dutch Comfort

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Re: Mortgage Payoff Club!!
« Reply #2356 on: October 24, 2022, 08:41:06 AM »
Update on our mortgage#1 (we have 2 mortgages, but want to get rid of this one ASAP!):
   
Original: 120,000 repayment date 06/01/33
October 2021: 67,000 repayment date 12/01/32
January 2022: 64,000 repayment date 10/01/32
March 2022: 60,500 repayment date 04/01/32
April 2022: 60,000 repayment date 04/01/32 - HALFWAY MARK!!!!!
October 2022: 56,000 repayment date 02/01/32

Yes...... another 2 months shaved off...... The outstanding amount is starting to look smaller and more manageable every month.

Dicey

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Re: Mortgage Payoff Club!!
« Reply #2357 on: October 24, 2022, 11:22:40 AM »
@LeftA and @Vashy   This thread AFAIK was the original for any mortgage going way back, but over time, the "bracket threads" popped up to share experiences with others in the same stages.    All good to post here anyway...   You're both close on the mortgages, so great job!   

With an economy heading towards recession as we're all being led to believe anyway, can you use all available cash and open a HELOC for the emergency back up just in case?    Saving guaranteed 5% interest (which is after tax money you're paying more like 7% or more) by paying off now, then keeping the flexibility of the HELOC for job change "gaps" and other dramas of life is a good way to get to debt free NOW with some hedge just in case for the future...   Think of it this way... Would you take out a new mortgage for that amount right now just to put cash in the stock market or a savings account for the next couple of years?
People forget that during the Great Recession, banks closed and/or froze HELOC's for thousands of customers. They also slashed credit limits. During a No Spend Month, B of A cut my limit by 60%, based on nothing but my "spending patterns". Needless to say, they no longer have my business. Just a friendly reminder that it could happen again.

alcon835

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Re: Mortgage Payoff Club!!
« Reply #2358 on: October 25, 2022, 07:05:52 AM »
@LeftA and @Vashy   This thread AFAIK was the original for any mortgage going way back, but over time, the "bracket threads" popped up to share experiences with others in the same stages.    All good to post here anyway...   You're both close on the mortgages, so great job!   

With an economy heading towards recession as we're all being led to believe anyway, can you use all available cash and open a HELOC for the emergency back up just in case?    Saving guaranteed 5% interest (which is after tax money you're paying more like 7% or more) by paying off now, then keeping the flexibility of the HELOC for job change "gaps" and other dramas of life is a good way to get to debt free NOW with some hedge just in case for the future...   Think of it this way... Would you take out a new mortgage for that amount right now just to put cash in the stock market or a savings account for the next couple of years?
People forget that during the Great Recession, banks closed and/or froze HELOC's for thousands of customers. They also slashed credit limits. During a No Spend Month, B of A cut my limit by 60%, based on nothing but my "spending patterns". Needless to say, they no longer have my business. Just a friendly reminder that it could happen again.

This is such a good point and a big reason why a HELOC is not part of my emergency fund.

Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2359 on: November 11, 2022, 07:14:21 PM »
2008/9 was the worst since the 1930s and life is all about risk vs. reward.   Having a mortgage overhead you can eliminate is worth the risk of eliminating it.    If HELOCs that are in place already are restricted, then time for a side hustle.   Control your destiny.

Lilium

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Re: Mortgage Payoff Club!!
« Reply #2360 on: November 12, 2022, 05:13:57 AM »
Looks like I missed updating April...

Start: 168,090
Extra April: 2256
Extra May: 856

New Balance: 153,474

8.5% (?) paid off this year, so far.

It's been a hot minute since I've updated here.  Some progress has been made but not as much as I had hoped for. 

Start 168,090

Extra 2021 - 18,246.18
Extra 2022 - 2585.47

End 2022 137,294.50

Between regularly scheduled payments and extra principal, the balance has been brought down by 30,795.50 in just about 2 years. 

Vashy

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Re: Mortgage Payoff Club!!
« Reply #2361 on: November 15, 2022, 06:25:43 AM »
Dropped a chunk of my annual company profits into the mortgage and now at £33k. Our mortgage deal runs out this month, which would get us from a 2.5% tracker mortgage to the bank's "standard rate" (currently around 5%).

At this point, it makes no sense to get another two-year mortgage for a £1k fee - worst case, we'll pay this off in three years, best case I feel we could crush it in in 12 months' time. I'm getting a severance package from my ex-employer that would take care of the whole remaining debt, though I'm loath to reduce my financial flexibility that much, so I'll likely just drop in £10k or so at the end of the year and carry the rest of it for another year. With the UK capital markets in turmoil because we have a bunch of lunatics in charge of the asylum, I'm planning for every contigency.

Meh, checked again and the mortgage runs out next year (October 2023). I've set that as the goal for paying it off completely, though my income situation is somewhat in flux right now so hard to forecast cash flow.

Down to £32,700 in the meantime. Currently paying c£86 in interest per month on that.

wkumtrider

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Re: Mortgage Payoff Club!!
« Reply #2362 on: December 02, 2022, 01:23:18 PM »
Made my last mortgage payment at the end of October.  100% debt free, can't believe it. 

alcon835

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Re: Mortgage Payoff Club!!
« Reply #2363 on: December 02, 2022, 04:47:56 PM »
Made my last mortgage payment at the end of October.  100% debt free, can't believe it.

Heck yeah!!!! CONGRATULATIONS!!!!!!! That is so awesome!!!!

ATtiny85

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Re: Mortgage Payoff Club!!
« Reply #2364 on: December 02, 2022, 07:13:25 PM »
Made my last mortgage payment at the end of October.  100% debt free, can't believe it.

Nice, congrats. It affords a different type of flexibility. We paid off ours several years ago, but due to an ill-timed corporate move we have a small mortgage now. It is at an insanely low interest rate, but we will still likely pay it off before long. We fill all other investment buckets we need to in order to reach our targets on time.


Money Badger

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Re: Mortgage Payoff Club!!
« Reply #2365 on: December 02, 2022, 08:32:39 PM »
Made my last mortgage payment at the end of October.  100% debt free, can't believe it.
This is great work!   Go walk barefoot on the floor and the yard and enjoy the moment.   Rarely does anyone notice unless you brag about it though.   No music plays.   No award bell sounds.   But now you are ready to CRUSH it with your investments of that free cash flow.  All your  money works 24x7x365 for you 100% now.   Awesome!   

rmorris50

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Mortgage Payoff Club!!
« Reply #2366 on: December 03, 2022, 07:58:42 PM »
@LeftA and @Vashy   This thread AFAIK was the original for any mortgage going way back, but over time, the "bracket threads" popped up to share experiences with others in the same stages.    All good to post here anyway...   You're both close on the mortgages, so great job!   

With an economy heading towards recession as we're all being led to believe anyway, can you use all available cash and open a HELOC for the emergency back up just in case?    Saving guaranteed 5% interest (which is after tax money you're paying more like 7% or more) by paying off now, then keeping the flexibility of the HELOC for job change "gaps" and other dramas of life is a good way to get to debt free NOW with some hedge just in case for the future...   Think of it this way... Would you take out a new mortgage for that amount right now just to put cash in the stock market or a savings account for the next couple of years?
People forget that during the Great Recession, banks closed and/or froze HELOC's for thousands of customers. They also slashed credit limits. During a No Spend Month, B of A cut my limit by 60%, based on nothing but my "spending patterns". Needless to say, they no longer have my business. Just a friendly reminder that it could happen again.

This is such a good point and a big reason why a HELOC is not part of my emergency fund.
This is always a risk with a line of credit as an emergency fund. In a major crisis you may not have access to it especially if everyone is running to the institution at the same time.

Guess if one is truly worried about a HELOC shutting down you’d have to draw the money out and put in another account and then pay the HELOC interest. Expensive cost to ensure liquidity tho.

Why am I reading this thread? I love my 2.5 percent fixed rate mortgage, and inflation is making it cheaper every day.


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