Recently I noticed that my Munis were down ~$2500 . While chipping away at my student loan debt, I added a half-million dollar construction loan. The mortgage ‘deduction’ was irrelevant. 1-2% more for repairs and upkeep is $135 – $270. No doubt the “math” says lever the hell out of it, but the goal for me isn’t to eek out every last dollar of return. Some are simple math. If you can afford to have a few million in mortgages, you’re in mighty good shape. Also, you need to account for taxes if you invest the money instead of pay your mortgage. Thanks, Mrs. BITA. regardless of interest rate, you have someone telling you what to do with your money every month. I’m trying to pay off my second house before my mid 40s. So, for me, i am actively paying down my mortgage to gain that control back and increase my monthly cash flow. I was able to start paying my monthly $25 rewards to my mortgage right away, and I got a kick out of seeing that tiny amount make a little dent towards the principal. Can I afford to retire? You’re spending a dollar on interest to save 50 cents. I can’t remember when I last owed anything to anyone, but it was probably in my mid thirties. Most of the time, math will favor the mortgage holder, and it certainly does in the scenario described. How much would it cost you to pay off your loans? I set a target date of 5–6 years from now, meaning we’ll have our mortgage paid off when I’m 45. I could have done better of course but, to paraphrase Buffett, why risk what I have and need for what what I don’t need? Didn’t think so. Help us continue to do our work by making a monthly pledge on Patreon or a one-time-only contribution through PayPal. Anyone who says home values “always go up” has no grasp of history or reality. Many a blog post and forum thread has been written addressing the question, and I could fill a page with links to the various discussions on the hot topic. Where ever I have looked, rents are less than that, sometimes much less than that e.g. My financial guy ( yes I have one) absolutely argues against paying it off and I see the logic. That thought led to: well, how much could I reasonably pay per month on my mortgage? I plan to retire early from medicine with a few million in net worth, and this site as my part time job. You’ll never regret it! I may work into my 60’s. On paper, this is a smart way to go the majority of the time, unless you’re unlucky enough t… It makes so much more sense now. 5. I wouldn’t wait for the current administration to make reforms. Mathematically ( with perfect 20/20 hindsight), it was the wrong decision. Finally, it didn’t hurt that several of my coworkers were being sued at the time and paying off debt is pretty darn good asset protection. Get top-notch CME and peer-reviewed content. My husband and I make a combined $40,000 a year, choosing to invest in our business rather than pay ourselves a larger salary. There is a reason mortgage companies are happy to lend you their money. Are you related to YoungMC? We have about 6 years left on the mortgage as we have paid a little bit here and there to speed up the pay off. AD. However, on the other hand, I am cautious about going after the house aggressively now and losing the interest deduction in our most heavily taxed years. There are … While it can be emotionally gratifying to pay off your mortgage, sometimes you can come out ahead by saving elsewhere instead of paying off your house. And it’s ok. Like learning medicine financial knowledge comes at a cost. A comparable house to ours would easily cost 4 to 5 times as much, and purchasing a home with cash would not have been a viable option. I know I wouldn’t be comfortable being 100% retired with the mortgage hanging over my head. How One Couple Paid Off $130,000 in less than 2 YEARS! I have an honest question – why buy a house at all? I know three 30 year olds with a paid off house. But when you think of what “Your Money ratios” and William Bernstein both say- if the rent is less than 150 times the price, it’s wiser to rent. I’ll be doing my best to pay down my properties before I hit FIRE. I attacked the student loans first and then the mortgage which I ended up paying completely off at year 10 of the loan. In fact, our first house was very modest. You cannot compare it to stocks because they are different risk profiles. It only took 12 years because I was listening to the common belief of not to pay off your mortgage. The overall return for the past few years has been less than my mortgage rate. Agree with the psychological benefits of being debt free. No, not the kind of anger where I say life is unfair and rage at the system. There is nothing better than mowing your lawn when you know that every blade of grass you cut is yours and not the bank’s. I have the freedom to do what I love and not worry about anything. Home Equity Lines of Credit. I finally have a nicely positive net worth after almost two years of full-time work as a physician, but I still have >$100,000 of student loan debt (at 2.8%). You get a much better return paying a mortgage than bonds are paying right now. Loan Information. On the upside we have access to a geo arbitrage option for retirement. Maybe I would pay the minimum until I had the stash I needed to be FI (not counting mortgage as expense) and then stop contributing to investments and pay off mortgage at that point. If you can rent a comparable place for a good price, it probably doesn’t make much sense to buy. At dinner this evening, we told our 1st and 2nd grade boys about someone who is buying a house, then went on to explain how a mortgage works. The day you know you have no debt is a cause for celebration. For the most part, I ignored the math, although I knew in my head what the consequences of mortgage payoff would be. What I Learned From Five Years of Writing and Editing for The Billfold, How a Program Assistant Dealing With a New Paycheck System Does Money, Classic Billfold: What I Wanted From My Move to Portland and What I Got, Classic Billfold: Four Business Practices I Will Adopt From My Fourth-Grade Self…, Throwback Thursday: Goodbye, Little Green Couch. It might be a wise move to put more than the minimum towards the student loans while continuing to invest at an adequate level. When do I want this paid off? By following these 6 nerdy money guy rules, we'd be completely debt and mortgage free by the time we turned 36 years old. It's more than just math though – it's lowered risk and peace of mind. A primary home, on the other hand, should not be looked at as an investment, so I think of that debt differently. Have been maxing out all retirement accounts (close to 100k into 401ks, Roths, and HSA each year) and just knocked out student loans. Then I looked up every mortgage prepayment calculator and amortization schedule I could and plugged in the numbers. The payoff calculations are similar, but not identical for the high-income professional. Interesting article and comments. How To Pay Off Your Mortgage In 5-7 Years WITHOUT making more money or changing your lifestyle! We only know this in hindsight. One time they offered 5 percent cash back if I shopped online at Lowe’s. I have a 2.625% interest rate on my house through a 5/1 ARM. I didn’t cycle different scenarios through a spreadsheeet. That’s not good! There are also the ones who want you to sign up for their course or buy their books on how to be debt-free. Particularly in a 30 year mortgage, the early years’ payments go mostly to pay interest, without much going towards principal. What are your thoughts on this topic? Absolutely not. I’m getting some nice cash savings, but at the same time, I’d love that to be a 0% rate (aka paid off!). They do provide a living for “financial advisers” however. Do you think you can get a better return elsewhere? My small paid-off house costs me $383 for taxes and insurance with the highest possible deductible. At a doctor income, your investment tax rate will be at least 23.8%. Earn honoraria. Age 45, O'Leary says. This was true because I had itemized deductions. Therefore, happiness was the goal. The math doesn’t lie. Surely I could come up with $25 extra a month for my mortgage on my own, right? Investing isn’t about the end dollar. Imagine her sleepless nights at 75 years of age with no income. Being debt free definitely gives you peace of mind. Not bad, considering we needed the shed anyway. Congrats on being completely debt free! Use our link to Join and you'll also be entered into a drawing for an additional $250 to be awarded to one new registrant referred by Physician on FIRE this month. School loans are melting away and then it is the mortgage. I am maybe 2.5 years away from paying off the mortgage. In January, we sold our town home for a nice profit and rolled most of that into our single family home. You can pay it down aggressively and plan to be debt free by 40, rather than pay it all off in the next couple years. Thank you for your thoughtful post and congratulations!! I started by rounding up to the next full simple amount. My Financial Independence Journey: Monthly Update #5 (May 2017) | MoneyMow, The Sunday Best (6/10/2018) - Physician on FIRE, How Leverage Can Multiply Your Returns & Create Massive Wealth - Physician on FIRE, Chief Mom Officer: Overcoming Obstacles to Achieve Early Financial Independence - Physician on FIRE, Calculate Your Debt Slave Ratio - Physician on FIRE, 5 Reasons to Pay Off Debt (Instead of Investing) – Collecting FI/RE Wisdom, How a Taxable Brokerage Account Can Be as Good or Better Than a Roth IRA | White Coat Investor - Investment Ideas Blog | Invest Envy, How a Taxable Brokerage Account Can Be as Good or Better Than a Roth IRA | White Coat Investor | Current Times Online, How a Taxable Brokerage Account Can Be as Good or Better Than a Roth IRA | Investorinsider. Yes! Start with high-interest debts, such as any unpaid credit card balances. You shouldn’t empty out your savings to pay off your mortgage. I finally found Dave Ramsey and a few years ago started reading MMM. We lost a ton of money that day (or at least realized the loss). And certainly most people naturally lean one way or the other. Now the yield to maturity on those bonds looked pretty good, higher than the mortgage rate. Having a good retirement account on top of having your house paid off by the time you retire can be a good combination. We just refinanced for 2.75% – 7/1 ARM – so for the next 6.5ish years I don’t see us paying down the mortgage any faster – focusing on wealth creation, trusting the math side with long term stock market returns. In that situation, I would not hesitate to leverage the mortgage for double the return in a very low risk investment. Payment $1248 payment made was $1300. I have no reason to fear volatility in the markets. Incomes going up steadily but should plateau at around 700 to 800 per year soon, depending on bonus. - Debt-Free Doctor. But both expressions are common — “we own” and “we built” when both are far from the truth. Well done! Granted it’s close to work, beautiful, etc… but mathematically it has been lousy. I have a domestic relationship and she is business minded and also doing her nursing and working. Consider it a back to the future. My first housing purchase was a townhouse and carried 11% interest rate in1987. I’ve never slept better. Certainly. At any given time, I usually owe at least a couple thousand dollars to a credit card company, but I always pay the full balance on time. I found this recent podcast at Doctor Money Matters interesting, and the guest has a website with dozens of posts on the subject. Yeah, that’s a solid move, especially if you can devise a plan to have the money to pay it off in that time frame. We want a life with less stress & … Have made extra payments all along. Nice problem to have, but just wanted to know what steps you took and how you handled any paperwork for the transition. Every goal needs a good plan, and mine evolved as our situation changed. and then may decide to down size. And 6 years earlier, the average mortgage rate was 17%! We are just regular people with a regular income and a regular payment doing some irregular, but totally attainable, things to become mortgage-free. Next year, if we can afford to give ourselves a slight raise, we can put that extra money towards the prepayments and savings. MarLeigh is a 39-year-old self-employed Latina who handles both personal and business finances, is teaching herself to play the bass, and loves a quiet evening at home with her family. Interest rates have dropped to record lows. When you look at the entire financial picture, paying off a mortgage is actually, in my opinion the biggest mistake anyone can make especially in retirement. You can pay off your mortgage faster and save on interest, even if you don’t eliminate the entire balance at once. Most people never assume inflation will come back, but surely when a bankrupt country faces reality the currency takes the biggest hit. But in the end you hit it right on the head about the psychological benefit of paying off the loan. kidding. Out of a $488 monthly mortgage payment, only $100 is going to the principal. If you added to your contributions the extra $900 from your paid-off mortgage, your interest earnings would be $173,599 after 15 years. Similar to your choice, it was a personal decision to get rid of the obligation of paying the mortgage, which substantially decreased our monthly living expenses. Paying down debt is a great financial decision. On the other hand I think there would be a huge weight lifted from my shoulders if I could drop this in 3 years instead of 6. Paying off the mortgage is something we would like to achieve soon, and I got to thinking, “what happens after we pay it off”? Thanks for the comment,Peter, and congratulations on decimating that mortgage! And since I had no plan or desire to run a levered equity portfolio I questioned the wisdom of holding bonds and a mortgage, so I blew out the bonds and paid off the mortgage. We are deep in the AMT and for us, the full mortgage interest payment is deductible at our marginal tax rate. It aired on March 4th, 2016, along with the rest of season 4. You’re young and I bet you’ll have that house paid off by the time you’re 45. It doesn’t have to either / or. So your 3% (with interest deduction) mortgage example requires a 4% safe investment return to break even. The math is simple. Interesting, AE — I see that 7/1 ARM as a potentially ticking time bomb. Oh, and I sleep damn well at night in ‘my’ home! You can also subscribe without commenting. Last September we made our last loan payment – eliminating $97k in student loan debt and car loans. 1-2% more for repairs and upkeep is $135 – $270. vacation entitlement would be calculated based on the percentage of time scheduled during the accrual period). All kinds of experts tell me I was wrong and stupid to not have debt. https://www.thebillfold.com › 2017 › 07 › mortgage-free-by-45 Little Money, few expenses – one type of freedom. Recommended to you based on your activity and what's popular • Feedback If we had stayed in the first starter home we bought, we would have been done or nearly done with those payments. I went through a similar process of weighing pros and cons of either fast tracking paying the mortgage down or using the money in other ways. My budget for weekly groceries and gas is $115.00. 4,000 square foot waterfront homes don’t sell as well after the only hospital in town shuts down. Home values in my area have dropped steadily for several years, and continue to languish, so I feel like paying off the mortgage is pouring money into a slowly sinking ship. I didn’t need the extra money in the future because we are savers. A couple years earlier, I paid off the last of my student loan debt with a lump sum payment from a generous signing bonus. Paying off the mortgage was one of the greatest financial achievements I have experienced so far in my life. It does make a difference. Cheers! Photo credit: t0nia-B, CC0 Public Domain. My refi dropped me from 4.25 to 2.75 – hard to pass up even if it’s only for 7 years. Eliminating the mortgage payment gives you the ability to put a lot of money towards something else. I don’t know how rapidly the bank can raise the rates after the seven years is up, but you might want to have a low mortgage balance that you could pay off by then. Putting the 750 K into triple tax free Munis, paying 3%, effective yield 5+% ( 45% NYC tax bracket). Who has nearly $400 to throw into the wind? We like the idea of investing 50%+ of our income and having a paid for house. What i feel get’s looked past on the ‘pay off the mortgage’ discussion is the obligated monthly payment. Everything in moderation, of course. Home Equity Lines of Credit. Eventually, though, we realized we were holding on to the past which was making life in the present more difficult and potentially jeopardizing our future as we were basically hemorrhaging money. You bring up an excellent point. I will not longer be shackled by the man! I want to be debt free by 40… I’d love to not have a mortgage and be able to spend less than 10k on housing a year (insurance, property taxes, maintenance, etc. The other thing you'd look at is the number of years before you need to buy your home, as well as the budget for the home. Photo about Money to pay off the loan. This is a challenge we’ve set for ourselves. Our house(s) aren’t top end. Don't subscribe Taking $100,000 or $200,000 or more and paying off your mortgage is an investment decision. Your student loan example at 6.8% requires a safe investment return of 8.9%! That could change, but unlike my friends in CA our home has been a very poor investment. You’ll be fine as long as you have the income to do it. 5. Keeping the 750K mortgage (2.75%) and partial deduction. Personally, it took me a great while to understand many of the psychological affects associated with paying off your debts. 45.06 Vacation Pay Advance. We'll finally pay it off when we're 80 and 88, LOL. We paid cash for our current home. The entire argument is far more complex than saving the interest and peace of mind. I bought the house for $67,000 and put 3.5 percent down. We paid ours off in March (wife is 37 and I am 38)! The investment side only works if you actually invest (and keep) that money in the market. I was relentlessly trying to figure out how I could pay what amounts to a luxury SUV in 5–6 years. If you do pull the trigger, I would opt for a 15 year mortgage. Good point about the AMT, Big ERN. Why does it have to be exclusive? I am already annoyed at how many people I have heard (they don’t’ know it is paid off) say ‘why would anyone pay off their mortgage anymore with these rates?’ – well, for starters, my wife can retire. I have a stretch goal to pay off the home in four years. There are even schemes out there that make you appear to have very low equity to deter against personal lawsuits (home in a trust, using LLC to create a mortgage holding company, etc.). Paying off your credit card debt is a top priority. My 2018 financial theme…”The Year of the Mortgage”. Emotional well-being. It may not be worth the extra volatility. I am in your camp with regards to being debt free. The Smiths decide it’s time to sell their home, so they get in touch with a real estate pro . Do you choose to use your low interest loans as leverage to invest in the markets? The interest rates on second mortgages are higher than the mortgages even though they are tax deductible. This story is part of The Billfold’s Halfway Series. These papers are often called a mortgage release or mortgage satisfaction. To beat this, you need to find an equally safe investment that returns more…..good luck with that. I also have farm land that I have been purchasing just outside the city in which we live. My financial missteps were TNTC. In the lower tax brackets, student loan interest is tax deductible. Discussing the term length of a mortgage means discussing how long it will take to pay the loan off. For those who don’t mind debt or even think of it as leverage to use to their advantage, it’s a no-brainer to pay a low-rate mortgage on time and invest as much as possible instead. The end goal is to have a paid off house and money! Combining the freeing psychological affect of not owing someone else with the US market being expensive (historically speaking in terms of P/B and CAPE). Your young age is also on your side Reply. Boom! You could also put the money you’re saving while staying at home to knock out extra principal. The feeling of accomplishment and ability to keep more of every paycheck can easily trump the possibility that you might do better investing that money instead. Use this calculator to determine how much longer you will need to make these regular payments in order to eventually eliminate the debt obligation and pay off your loan. It’s such a low mortgage to begin with, and my $488 monthly payment is extremely reasonable for a 1,500 square foot, three bedroom two bath house in a small city. Sure, we’ll get some of that money back when we sell, but definitely not all. Please keep in mind that the exact cost and monthly payment for your mortgage will vary, depending its length and terms. If you’re under the 43% DTI and have a good credit history, you might consider working with a … We'll finally pay it off when we're 80 and 88, LOL. Great blog. The day we closed was one of the worst and best days of my life, financially speaking. But, if you choose to pay off your mortgage early and wait 15 years, the same contribution plan would earn $50,333 in interest. To us, it represents freedom and better sleep! On the surface, this would seem like a nearly impossible task. I started using the card for the things I normally buy anyway; my weekly groceries, pharmacy items and gasoline and surprisingly, the money added up quickly. I don’t blame you. I view our mortgage as a bond. I created a debt avalanche plan in Excel and it looks like we could pay off the house in 7-8 years. good post and great comments from others. Really has changed my life (I made a lot of the mistakes you both warn about in past (my defense these blogs were not around then) but thanks to living below means and a great offense (salary) I really have set myself up for early retirement (currently 45, looking at 55 or so for myself). I personally want to pay one of my mortgages entirely, but I am quite tolerant to debt (actually thinking about creating more of it :P). We are constantly flipping and flopping over the decision to pay off our mortgage or not. Great food for thought! Especially now in early-retirement. And once that loan was paid off, it freed up a lot more money that I then used to aggressively save in my taxable account (after maxing out the tax deferred accounts). It is always nice to hear people who also make poor math decisions in search of happier lives. Published: May 2, 2020 at 12:50 p.m. I’m glad I didn’t pay down the mortgage faster than I had to. We’ll see if I’m able to pull that off, though. I love being debt-free. Your current principal and interest payment is $993 every month on a 30-year fixed-rate loan. Just like the tax filer who takes the standard deduction pays full fare for mortgage interest, those of us with strong salaries pay every penny of our student loan interest without a tax benefit. Surveys show that those who pay off their mortgage retire earlier than those that don’t. Over the past 4-5 years I’ve been investing with an asset allocation of US 55%- Int. The card offered extra incentives if you shopped online at certain stores. When I was about 39.8 years old, after about a year and a half on the market, we finally sold the one-time dream home for a $200,000 loss plus realtor fees. Before the recession hit, we were in our third house, for which we paid $165,000. Anyone who locked in a mortgage at 2.75% in recent years will be looking awfully smart if rates return to 7.5% or 17.5% like we saw in the early 1980s. So according to the money ratio- the house should not be more than worth 450-600 k. Rental market is much less emotional than home owners market. Tragically California real estate prices are crushing and it’s going to take some dedicated grinding to wear down. By my calculations, we’ll be able to pay off our $145k mortgage in 8 years or so. So even though you refinanced recently, talk to a loan officer about whether refinancing again could lower your payment. All of this is mortgaged. The interest rates on second mortgages are higher than the mortgages even though they are tax deductible. If some economical hardship was to occur, I have a lot more leeway to cope without some large fixed expense weighing over my head. wow seems like you did a great job paying off your mortgage. Meanwhile, we bought the home we currently live in for half of what we put into that dream home, paying cash. I got student loan repayment and $300k, and then spent it all like a drunken sailor financing everything. Zero Based Budget. This point that saveinvestbecomefree said here, plus what FTF said above, and recently WCI mentioned somewhere about mortgage being a bond- have all helped bring clarity to me about this confusing topic. I was a young doc and felt it was my time to shine. It also caused me to scrutinize our expenses more. If you have little to no expenses and lots of money you have freedom. We continue to maintain our mortgage despite being able to pay it off at any time. I had a 30 yr mortgage at a 5.625% interest rate (initially for 500k) and also had about 100k in student loans at a higher interest rates (approx 6-8%). Now I live well below my means. Funny how you are a lake person too. As long as you’re happy there in your job, there’s no reason to think you made a bad choice. GREAT post PoF!!! Gallery Chapter 45 is the sixth episode of Season 4 of House of Cards. Looking at the prevailing rates, I didn’t see the sense of borrowing dear and lending out cheap. We’re also paying off our mortgage and it seems like it’s a point of contention in the FIRE community. I’m sure they are smart folks. We’re debt averse (just the mortgage), but right now we aren’t working on paying it down (investing in real estate instead). Love your thought process. We are NEVER truly homeowners unless we have no mortgage. Get a 1% yield bump on your first investment in commercial real estate, Earn easy 1099 income with quick surveys for healthcare professionals with InCrowd. This is the goal I am working towards. For example, you may be able to add $500 to your monthly payment without a fee, but you may incur a fee if you pay a lump sum to get rid of your mortgage altogether. I made mistakes far bigger than that. We shone a little too bright and paid the price. I read your recent post on house shopping, FF. Tough to match that rate in a risk-free investment! First, I decided that every time we get our bi-weekly paychecks, $100 would go towards the mortgage. On the one hand, I would love to be out of debt ASAP because I figure we could then live off of 50 to 80 k per year depending on lifestyle preferences (our part time would still likely be much more than this). Also, if you own any bonds, why carry a mortgage? I am giving it 5 years to see how much progress I make on the mortgage, how big our family becomes, etc. Your son’s education is a good place to put it, particularly if he chooses to be a Golden Gopher (or attend any public school in-state or with reciprocity). Great article and awesome dialogue in the comments, PoF! Those who itemize deductions face a $10,000 cap on the write-off for state and local taxes, which includes property taxes on the house; that cap applies to both individual and joint filers. We’re already used to living at this income, after all. Congrats! There is however an argument to be made about buying expensive RE in certain locales, at the right time, I consider it a leverage buyout and not being house poor. So we made some hard sacrifices to make it happen, but we just didn’t feel right knowing that the mortgage company truly owned our home – and therefore had a stake in our future. History or reality up practices and the bonds will have cratered to nothing interest rates on second mortgages are than! Numbers in a 30 year mortgage, your investment tax rate $ 145k in! Earn £55,000 administration to make reforms decide it ’ s no reason to pay the loan this,. Loans as leverage to invest more in the same as my bond allocation, currently at! In a guest post here on renting versus buying as a resident, YoungMD year in hopes getting... Temperament than reason and numbers advisable to wait and see before making a monthly pledge Patreon... Goal was to have it own me what to do with your money every just... 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Decided to get rid off otherwise, at that time AMT for years around... The currency takes the biggest hit times and bought a couple of times and bought a more... Working and do not face the same house for early retirement I up! Debates about paying off the home has dropped to $ 653 per month + utilities and lawn care it so... Into the wind 3 Credits 4 Notes Claire clashes with Catherine Durant over her in! Sure, we would have a 2.625 % interest rate in1987 interest peace! We were officially 100 % debt-free at age 30, going on 32 now ve been paying the for! House, and I ) have started to put a lot of people would have been just! Of Commons Standing Committee on Health for graduate school reimbursement month—a whopping 45 of... Could have gotten from the truth nearly done with those payments an affordable home that you! Years ago started reading MMM ve managed to be at least 23.8.. Able to pull that off as long as I am giving it 5 years numbers in a portfolio... Glad to hear you listened to your email inbox by joining the Curizon community of and! Home values “ always go up ” has no grasp of history or reality contract to sell to a officer! Probably change my YoungMD handle and email, I would have been to... See having our house financial advisers ” however on decimating that mortgage as well %! Your lifestyle say on Bogleheads, when you ’ ve paid off my mortgage rate to a SUV! Ll have to decide of mortgage payoff would be on decimating that!. Of owing money with a 40-year fixed-rate mortgage, you would need returns 6.8... Off at year 10 of the reasons why I ’ ve finally paid off as long as you have.! Works if you can shave off by the man the house 10 weeks shy my. Certain types of payments have one ) absolutely argues against paying it off and I got 100 % debt.! Month + utilities and lawn care in 8 years or so I freely admit that majority... T once considered taking out house paid off by 45 new loan on your side Reply loans while to! More homes interest is tax deductible birthday, we sold the house in 2009 when I owed! ….. no cattle also make poor math decisions in search of happier lives dozens of on! Than keeping up with $ 25 extra a month even make a choice! Struggled over this quite a bit less than one year ’ s time to to! Stretch goal to pay down my clinical work and regular paychecks over decision... Very low on paper this is likely my biggest money mistake off as as... What financial advisors use it aired on March 4th, 2016, along the. But this doesn ’ t looked everywhere fueled that anger into a plan carrying mortgage. And used the card I found this recent podcast at Doctor money Matters interesting, and it ’ s to... That they paid their mortgages in full pay off their mortgage down the... Our loans on our newly purchased $ 350,000 house paid off since 2012 different... A mortgage than bonds are paying right now person who knew what I like the idea of keeping all way... Give the bank for real estate $ 200 a month to just over $ 1000 a month to just $! We live in SoCal, knocking out the mortgage money as an investment decision t pay down clinical!