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Paid off our house!!!!!!!!!!!!

Old 12-26-2018, 12:56 PM
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Default Paid off our house!!!!!!!!!!!!

Im 49 and wife is 45 and we paid it off last month!!!!! All while maxing out my 457, we refinanced almost ten years ago with a ten year note and paid it off early. I have read multiple post and articles on letting your money work harder for you in the market, but I have to say it will be nice to get paid on the 31st and not have to write a fat check out. Going to work on getting wife to max her 457 out.
Old 12-26-2018, 12:58 PM
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Congrats! It's a great feeling, we did the same back in Aug.
Old 12-26-2018, 01:00 PM
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Originally Posted by fishknut View Post
Im 49 and wife is 45 and we paid it off last month!!!!! All while maxing out my 457, we refinanced almost ten years ago with a ten year note and paid it off early. I have read multiple post and articles on letting your money work harder for you in the market, but I have to say it will be nice to get paid on the 31st and not have to write a fat check out. Going to work on getting wife to max her 457 out.
What was your interest rate?

Given the historical low rates, I would've done a 15-30 year refinance and taken that free 3% loan

Paying off a low interest rate loan early is usually a bad idea
Old 12-26-2018, 01:00 PM
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Way to go fishknut!!! Thanks for letting us all know that we can start sending our mortgage notes your way (ha ha).
Old 12-26-2018, 01:00 PM
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I'm 45 and we are 2 years away... I can taste it. Congrats to you two!
Old 12-26-2018, 01:01 PM
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Congrats, I am hoping to do this myself, once wife is back to work I should be able to max our retirement accounts out annually and pay down the house. If math holds we should be paid off by 42 unless the wife magically convinces me to buy a bigger house which I have refused to do so far.
Old 12-26-2018, 01:02 PM
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Originally Posted by mystery View Post
What was your interest rate?

Given the historical low rates, I would've done a 15-30 year refinance and taken that free 3% loan

Paying off a low interest rate loan early is usually a bad idea
Why, I always here this but never understood this.
Old 12-26-2018, 01:07 PM
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Congrats. I know a lot of the financial folks like everyone keeping mortgages, and playing the market with the excess cash flow. I won't say they are 100% wrong, but I very much look forward to the day when my house is paid for and I have sufficient funds in the bank to do anything I wish for a year or more without even thinking about it. Have 4-8 years depending on a few things. Keeping plenty in investments and whatnot, but want the core of my financial life to be very simple, and anchored by a paid for house.
Old 12-26-2018, 01:09 PM
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Originally Posted by olsaltydog View Post
Why, I always here this but never understood this.
That's not a one size fits all rule. You have to look at your complete financial condition and be honest with yourself. Everyone should do a PFS the beginning of every year and compare it to previous ones to see how you're really doing.
Old 12-26-2018, 01:09 PM
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Good for you I suppose. I suppose everyone’s situation is different.

I’d prefer to have a low interest rate mortgage and the tax write off. Then put the money to work on something else.
Old 12-26-2018, 01:11 PM
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You can live in a house but you cant live in a stock certificate.
Good job!
Old 12-26-2018, 01:16 PM
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Congratulations. Debt free living is a wonderful thing
Old 12-26-2018, 01:19 PM
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Originally Posted by mystery View Post
What was your interest rate?

Given the historical low rates, I would've done a 15-30 year refinance and taken that free 3% loan

Paying off a low interest rate loan early is usually a bad idea
Rate was 4.25, again I didn't ignore retirement or enjoying our life. We travel, support a kid at UF (go Gators), and I just treated to myself to a new to me '16 GMC Dirtymax Demali. Like some one said it's not a one size fits all scenario, this worked for us. As far as a write off, the last few years with have been using the standard deduction because we paid down the principle so fast there wasn't enough interest to off set keeping the mortgage, especially with the new tax laws.
Old 12-26-2018, 01:20 PM
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Originally Posted by olsaltydog View Post
Why, I always here this but never understood this.
There are arguments for having the cheap debt and for getting it paid off. I think the new tax laws that provide a larger standard deduction make it less of an advantage to have mortgage interest to pay and maybe not be able to deduct. If you are sure you can get a better return in an investment than the percentage being charged on your mortgage then keeping the mortgage may be the way to go.

Derail, but first and foremost pay any high interest debt first. Student loan/credit cards. There is no way you can expect the market to exceed those rates on a regular basis.
What I did was refi into a 15 year loan and because I was 4.5 years from paying off I went to Bankrate.com and calculated the extra principle required to make the 15 pay off in 4.5 years.

Lastly congratulations.
Old 12-26-2018, 01:22 PM
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Originally Posted by olsaltydog View Post
Why, I always here this but never understood this.
because getting a loan at 2-3% is basically free money. i think 15 years dropped into the 2s and 30 years were as low as 3% at one point. you can deduct the mortgage interest that further lowers the effective rate.

you can do a lot with the money that will make you more $$$

i have one friend who took advantage of the last 10 years, bought 20+ properties, his tenants will pay them all off in 15-30 years for him, he will end up with millions in assets, and when they are all paid off that rent $$$ is free and clear and he is set for retirement.

i have other friends that refinanced the past few years at 3%, took the proceeds and made 10-200% on their $$$ depending how conservative they were
Old 12-26-2018, 01:25 PM
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Good for you! It is a great feeling. I understand about low mortgage rates and interest rates and making a little more in one place over another,but there is nothing like the feeling of no mortgage.
Old 12-26-2018, 01:25 PM
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did u check the records office to see if the mort was removed
Old 12-26-2018, 01:27 PM
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There are two sides. Emotion and business. I know I could have kept the mortgages on both houses and made more money but I fall on the emotional side and it's a great feeling to not owe anyone a dime except monthly bills.
Old 12-26-2018, 01:27 PM
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Originally Posted by mystery View Post
because getting a loan at 2-3% is basically free money. i think 15 years dropped into the 2s and 30 years were as low as 3% at one point.

you can do a lot with the money that will make you more $$$

i have one friend who took advantage of the last 10 years, bought 20+ properties, his tenants will pay them all off in 15-30 years for him, he will end up with millions in assets, and when they are all paid off that rent $$$ is free and clear and he is set for retirement.

i have other friends that refinanced the past few years at 3%, took the proceeds and made 10-200% on their $$$ depending how conservative they were
Ok, I get that the interest rate is practically free money but your now putting situations into this scenario that may not be what the OP wants to do. I personally don't want to be a property manager. So is this a one size fits all suggestion or a recommendation only suitable for people who are pursuing specified methods.
Old 12-26-2018, 01:30 PM
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Originally Posted by olsaltydog View Post
Ok, I get that the interest rate is practically free money but your now putting situations into this scenario that may not be what the OP wants to do. I personally don't want to be a property manager. So is this a one size fits all suggestion or a recommendation only suitable for people who are pursuing specified methods.
just examples...

for the OP, the more conservative approach could have been maxing out 401k, HSA, other retirement savings vehicles with the extra cash, or buying a vacation home, bigger boat, etc

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