Just wrote a $29k check

[Kbach]

Paid of my house today. Feels damn good to know everything I have is paid for. Might not have the most baller things but our family sure has a good time with what we’ve got!

 

[12vMan]

That's awesome, congrats. Like Arthur Bach once said, "Isn't fun the best thing to have?!"

 

[RitcheyRch]

Awesome and congrats.

 

[Aces & Eights]

Congrats! That’s a great accomplishment!

 

[shintoooo]

Hell Yeah!!

 

[Waterjunky]

Excellent!!!!

I am so looking forward to that final check. I am about 7 years out.

 

[Done-it-again]

Congrats must feel great.

Question as to why write a 29k early? If had a low rate no reason to pay off early.

 

[DILLIGAF]

Paid of my house today. Feels damn good to know everything I have is paid for. Might not have the most baller things but our family sure has a good time with what we’ve got!

Congrats! Mortgage free here as well. Def feels good

 

[Bpracing1127]

I have 29 years 3 months to go lol

 

[rivermobster]

Congrats!!!

Zero debt is the best feeling ever!!!

 

[angiebaby]

That is fabulous! Congratulations!

 

[CLdrinker]

Congrats must feel great.

Question as to why write a 29k early? If had a low rate no reason to pay off early.

I have considered paying of the house early to. But it would wipe every account clean. So I’m sitting tight.

Having zero debt is a huge piece of mind.

 

[C_J_J_C]

Congrats must feel great.

Question as to why write a 29k early? If had a low rate no reason to pay off early.

If you don't understand the feeling of not owing anyone and actually owning something the feeling can't be explained because you are right if your loan is 3% and you can make 7+% on their money why not right.....

I would pay 10%, hell 20%, more to not owe anyone anything.

 

[Kbach]

Thanks for all the well wishes!

My goal was to pay the house off by the time I was 55 and I just hit 51 a couple weeks ago.

I had a 3.5% loan so could have made a few more $$ if I put it in another CD but my CU rate was down to 4.1% so the satisfaction of being debt free outweighed the difference. Look…nobody ever said I was smart with my money

 

[regor]

NONE of us truly own our homes, there's a scam called property taxes that you will pay FOREVER.

But to all who have paid off their mortgages, well done.

 

[Orange Juice]

Paid of my house today. Feels damn good to know everything I have is paid for. Might not have the most baller things but our family sure has a good time with what we’ve got!

You don’t really understand how poor you are, until you pay off the house.

 

[C_J_J_C]

I do 99% of the family bills but many years ago I grabbed my wife and told her I needed her at the bank. She was confused and a bit nervous until she realized she was signing the wire authorization to pay off our house. I don't remeber the year but it was Decemeber 24th and she still says she will never get a better Christmas present.

The knowledge that if everything in life goes wrong she will always have a home is priceless.

 

[Done-it-again]

I have considered paying of the house early to. But it would wipe every account clean. So I’m sitting tight.

Having zero debt is a huge piece of mind.

If you don't understand the feeling of not owing anyone and actually owning something the feeling can't be explained because you are right if your loan is 3% and you can make 7+% on their money why not right.....

I would pay 10%, hell 20%, more to not owe anyone anything.

If having piece of mind and feelings I get it, but if that feeling is costing you money in the long run, I'm not sure.

It's like why would I put money down a car loan with 0% interest and then pay it off early.

 

[napanutt]

Haven't had a mortgage since we moved here to NH almost two years ago. It's a great feeling for sure.

 

[CLdrinker]

NONE of us truly own our homes, there's a scam called property taxes that you will pay FOREVER.

But to all who have paid off their mortgages, well done.

Some states freeze property tax when you turn 65. Atleast it’s something

 

[Kbach]

I do 99% of the family bills but many years ago I grabbed my wife and told her I needed her at the bank. She was confused and a bit nervous until she realized she was signing the wire authorization to pay off our house. I don't remeber the year but it was Decemeber 24th and she still says she will never get a better Christmas present.

The knowledge that if everything in life goes wrong she will always have a home is priceless.

I did the same thing. After Christmas dinner was over and done I told my wife I had one last present for her but it wasn’t wrapped. Told her we were paying off the house. She got pretty emotional…so did I. Feels good.

 

[C_J_J_C]

If having piece of mind and feelings I get it, but if that feeling is costing you money in the long run, I'm not sure.

It's like why would I put money down a car loan with 0% interested and then pay it off early.

Just different financial philosophies... the knowledge the bill is coming due and a liability not an asset is sitting in my garage is not worth the savings in my book.

You are 100% right on paper but I value the knowledge and piece of mind more.

 

[Travmon]

Paid of my house today. Feels damn good to know everything I have is paid for. Might not have the most baller things but our family sure has a good time with what we’ve got!

The coolest thing to ever have is the title. My stuff might not be new but it is mine. Congrats

 

[evantwheeler]

You don’t really understand how poor you are, until you pay off the house.

This makes zero sense.

 

[Ladsm]

I have been debating on taking the leap and paying off the house but everybody tells me dont give up the 2.8% mortgage and go invest the $$$#. Not having a mortgage with the extra monthly cash to invest sounds just as good.

 

[DILLIGAF]

NONE of us truly own our homes, there's a scam called property taxes that you will pay FOREVER.

But to all who have paid off their mortgages, well done.

VEry true. Just had to pay my prop taxes out here in Tx. I do get a homestead and retired exemption but.....

 

[PlumLoco]

Just a reminder to folks still in the first half of their mortgage. . . . Add 10-15% to your payment every single month, or make one extra payment a year. You can pay off a 30 year note in 18. Now that's a good feeling.

 

[cofooter]

Congratulations, great feeling and one that many will never realize!

 

[lakemadness]

Congrats. Got to be a good feeling if that’s what you wanted. It’s always a head scratched for me though, especially where rates were/are. I could pay all of my debts off and have left overs. But that would be a poor financial decision.

Although, a few high net worth people I’m close to don’t have mortgages on their homes. And yes, homes is plural. At some point ya got some much dough maybe it’s a pain to make that payment each month.

 

[rivrrts429]

I have $100k left to pay mine off. This might be the year I say fuck it and write the check. No tax shelter remaining anymore as I’m deep in the principle.

Congrats, it’s a good feeling to be done with a housing note.

 

[Ladsm]

I have $100k left to pay mine off. This might be the year I say fuck it and write the check. No tax shelter remaining anymore as I’m deep in the principle.

Congrats, it’s a good feeling to be done with a housing note.

Thats my problem, Low rate so no tax shelter. Might just wait out this year to see how economy rebounds under Trump and pull the trigger.

 

[rivermobster]

If having piece of mind and feelings I get it, but if that feeling is costing you money in the long run, I'm not sure.

It's like why would I put money down a car loan with 0% interest and then pay it off early.

I did this the other day...

I had zero percent financing, when I bought my silly cell phone.

I even had the payment, coming out of a savings account, that was there Only to make that One payment!

Every month, I was thinking something was gonna go wrong, and then they would bill me all of the interest, that I had been saving/avoiding.

So, I paid it off ahead of time.

I understand that some people like to "leverage" their money, to get the most they can out of it. Good for them! I'm happy to hear stories about how someone made out like a bandit!

You have to understand that some of us don't want the worry of having bills to pay.

Probably some weird OCD thing or some shit like that. But it's just easier for us.

And if by chance you can't understand it, no worries. Zero fuck given either way.

 

[lavey jr]

NONE of us truly own our homes, there's a scam called property taxes that you will pay FOREVER.

But to all who have paid off their mortgages, well done.

Don’t say NONE or FOREVER.
You can go serve our country and become a 100% disabled veteran and not pay property taxes.

 

[Done-it-again]

I did this the other day...

I had zero percent financing, when I bought my silly cell phone.

I even had the payment, coming out of a savings account, that was there Only to make that One payment!

Every month, I was thinking something was gonna go wrong, and then they would bill me all of the interest, that I had been saving/avoiding.

So, I paid it off ahead of time.

I understand that some people like to "leverage" their money, to get the most they can out of it. Good for them! I'm happy to hear stories about how someone made out like a bandit!

You have to understand that some of us don't want the worry of having bills to pay.

Probably some weird OCD thing or some shit like that. But it's just easier for us.

And if by chance you can't understand it, no worries. Zero fuck given either way.

When people retire so do their brain cells.... So I get where you are coming from...

 

[JFMFG]

Just a reminder to folks still in the first half of their mortgage. . . . Add 10-15% to your payment every single month, or make one extra payment a year. You can pay off a 30 year note in 18. Now that's a good feeling.

Is this true? I’m assuming you pay it to the principle?

 

[mesquito_creek]

Congrats must feel great.

Question as to why write a 29k early? If had a low rate no reason to pay off early.

My guess is that his loan was in its final stages where there is hardly any interest in the payment and is mostly principal anyway.

Probably also zero tax deduction advantage to keeping the loan since someone like him is probably taking the standard deduction anyway.

He can now insure it however he wants and not be told by the bank how much insurance to carry. He could even self insure if he wants.

And finally if 29 grand and the interest at sub 3% and you are trying to leverage the spread against stocks etc… that is so minimal the piece of mind is worth it AND there are no guarantees he gets 7 percent next year, therefore he locked the 3% now with zero risk.

I don’t know anyone who is mortgage free who wakes up any day thinking life was better paying interest to a bank regardless of how low it was…. Although, a bunch of people who have never been mortgage free will tell you otherwise.

Congrats to him!

 

[Hypnautic]

Not sure if I will ever be in that position. At least its not within my vision currently.
Have a little over 1.3MM in mortgage balance. Now that is spread over a few homes--but still a long way from paying anything off.
Everything else is FC, cars, boat, trailers, vacation, CC --so pretty easy to manage.

I dont think I will ever be mortgage free. Hard for me to let that much in equity sit without leveraging it.

To each their own. Paying off your mtg is something to be proud of. Huge accomplishment. I can understand the family security.

 

[Done-it-again]

My guess is that his loan was in its final stages where there is hardly any interest in the payment and is mostly principal anyway.

Probably also zero tax deduction advantage to keeping the loan since someone like him is probably taking the standard deduction anyway.

He can now insure it however he wants and not be told by the bank how much insurance to carry. He could even self insure if he wants.

And finally if 29 grand and the interest at sub 3% and you are trying to leverage the spread against stocks etc… that is so minimal the piece of mind is worth it AND there are no guarantees he gets 7 percent next year, therefore he locked the 3% now with zero risk.

I don’t know anyone who is mortgage free who wakes up any day thinking life was better paying interest to a bank regardless of how low it was…. Although, a bunch of people who have never been mortgage free will tell you otherwise.

Congrats to him!

Great point of view, thank you!

 

[PlumLoco]

Is this true? I’m assuming you pay it to the principle?

Not sure it works with a low interest loan, but if you are at the more normal 6-8% that is traditional for most of the last 40 years, yes paying an additional payment to the principal will cut a 30 year loan down to 18ish. The simplest way to accomplish the same thing is to pay your normal payment in bi-monthly payments. If you pay half every 2 weeks you will end up making an extra payment due to the fact that there are 52 weeks in a year plus a few days here and there.

 

[rrrr]

My guess is that his loan was in its final stages where there is hardly any interest in the payment and is mostly principal anyway.

Probably also zero tax deduction advantage to keeping the loan since someone like him is probably taking the standard deduction anyway.

He can now insure it however he wants and not be told by the bank how much insurance to carry. He could even self insure if he wants.

And finally if 29 grand and the interest at sub 3% and you are trying to leverage the spread against stocks etc… that is so minimal the piece of mind is worth it AND there are no guarantees he gets 7 percent next year, therefore he locked the 3% now with zero risk.

I don’t know anyone who is mortgage free who wakes up any day thinking life was better paying interest to a bank regardless of how low it was…. Although, a bunch of people who have never been mortgage free will tell you otherwise.

Congrats to him!

That was our thinking when we paid off our primary home and the lake property where we now live at the same time. One was about $30K, the other mid $20s. Both had 15 year mortgages, so together the payments were a large cut of the monthly budget, and the tax advantages were minimal.

It was just easier.

EDIT: This was in 2010, when I thought it better to retire the ~4% debt since the markets were flipping around on the floor gasping for air like a goldfish that had jumped out of its bowl.

 

[Havasu blue label]

If you don't understand the feeling of not owing anyone and actually owning something the feeling can't be explained because you are right if your loan is 3% and you can make 7+% on their money why not right.....

I would pay 10%, hell 20%, more to not owe anyone anything.

Smart man

 

[JFMFG]

Not sure it works with a low interest loan, but if you are at the more normal 6-8% that is traditional for most of the last 40 years, yes paying an additional payment to the principal will cut a 30 year loan down to 18ish. The simplest way to accomplish the same thing is to pay your normal payment in bi-monthly payments. If you pay half every 2 weeks you will end up making an extra payment due to the fact that there are 52 weeks in a year plus a few days here and there.

Gotcha ya my interest rate is 3.125

 

[Mrs. Riley1]

Not sure it works with a low interest loan, but if you are at the more normal 6-8% that is traditional for most of the last 40 years, yes paying an additional payment to the principal will cut a 30 year loan down to 18ish. The simplest way to accomplish the same thing is to pay your normal payment in bi-monthly payments. If you pay half every 2 weeks you will end up making an extra payment due to the fact that there are 52 weeks in a year plus a few days here and there.

We do the bi-monthly payments. We’re at 3.5%. Looks like it’s going to take 7 years off.

 

[Go-Fly]

Paid of my house today. Feels damn good to know everything I have is paid for. Might not have the most baller things but our family sure has a good time with what we’ve got!

Nothing better then owning your home and having all the titles to your toys. Things will change for the better in your life.

 

[Havasu blue label]

We do the bi-monthly payments. We’re at 3.5%. Looks like it’s going to take 7 years off.

Very smart

 

[brgrcru]

This makes zero sense.

Does he ever ?

 

[Your ad here]

Congrats must feel great.

Question as to why write a 29k early? If had a low rate no reason to pay off early.

Probably got tired of writing that check.

 

[evantwheeler]

Is this true? I’m assuming you pay it to the principle?

Yes. Log into your mortgage online and there is likely a calculator that shows how much an extra payment made and applied to principle will take off the life of the loan and how much interest saved in the end. This in on my primary which has about 10 years left on a 15 year note at 2.375% and I just plugged some numbers in as an example:

On my rental, I have a 30 year and the extra payment makes a DRASTIC difference in the interest paid over the life of the loan. For now, the interest is being paid by a tenant so I'm only tossing $250/moth extra at it and also doing the bi-monthly payments so I make an extra payment a year. Its not a big hit to my lifestyle so it feels good to see the principle pay down a bit faster.

On edit. I know it is just simple math, but the difference in interest on a 30 year and 15 year makes you want to just throw up.

~$240k on 15 years at 2.375% will be around $40k in total interest paid = i can live with that

~$325k on 30 years at 5.3% will be around $300k in total interest paid = blow chunks


2nd edit: This is the rental - Principal & interest is $1900, so my $250/month additional payment to principle, which is 13%, will knock ~6 years of the loan if I keep it up throughout the duration. I'm praying (with the rest of America) for lower rates and being able to refi to a 15. May have to wait until the primary is paid off to be able to afford that.....

 

[regor]

Don’t say NONE or FOREVER.
You can go serve our country and become a 100% disabled veteran and not pay property taxes.

That’s the least they can do? I wonder how many scams are going on there?

 

[HNL2LHC]

Congrats on your success. Just got to take a little chunk at a time. Once you pay one thing off it snowballs. You take the $$$ and put it t words the next with high interest rate. Next thing you know your debt free. Many ways to look at things and you gotta do what is best for your situation. I always knew that our privious primary home was not going to be our forever home. It was what the family needed for that time period. We leveraged it to buy rentals and when the time is right it would be sold.