Moparts

Who has paid off their house?

Posted By: nutso suave

Who has paid off their house? - 07/01/19 04:16 AM

Who has paid off their mortgage? It seems like following the meltdown on 2008 a lot of people were either upside down or starting over. I'm curious how many people have paid off their homes since then. I recently made my last payment and while my house isn't the Taj Mahal, it's pretty nice. It's kind of like the late brown model sedan you see in the grocery store parking lot that has a "Don't laugh, it's paid for" bumper sticker. laugh

How old were you when you paid off your home? Or how much longer do you have? I'm wanting to upgrade my carport to a garage, so it's time to start saving for that project...I don't really want to get into debt again.
Posted By: ScottSmith_Harms

Re: Who has paid off their house? - 07/01/19 04:22 AM

Paid mine off in 2003, very glad I did, its not fancy but its comfortable and living modestly has made many other things I've done financially possible. One thing that sucks though, there's still property tax and it is always going up. Mine is about $250.00 a month now.
Posted By: srt

Re: Who has paid off their house? - 07/01/19 05:30 AM

Paid off first in 06 after paying 20 yrs on it. We then started a loan on a second home in '12 while keeping the first vacant as it has just been completely updated (interior finishes, roof, paint and windows). We were fortunate and bought conventional from people needing to sell (had chased the market down) and the timing was at rock bottom of values in CA. We tossed out a crazy low offer with hopes to get a little price shave for a couple items needing attention. Little did we know they would take it as they had an offer pending in another town. Waited 2 years to sell the first and paid off the more expensive 2nd home in '14.
I was 48 the first time and 55 the second.
Since then we have no loans save for current bills and credit union credit card we use for everything to get cash back.
I'm prepping to perhaps do this one more time should the markets implode. Our daughter and family is currently shopping and I cannot believe what realtors/brokers/banks have done with home prices with the feds offering low prime lending. The stage is set for a major correction, it's already started here with listings languishing and prices retracting 5% or more.
Posted By: Morty426

Re: Who has paid off their house? - 07/01/19 07:17 AM

Originally Posted by ScottSmith_Harms
Paid mine off in 2003, very glad I did, its not fancy but its comfortable and living modestly has made many other things I've done financially possible. One thing that sucks though, there's still property tax and it is always going up. Mine is about $250.00 a month now.


$250? laugh2 Mine is pennies under $1000. So stop complaining.

Mine is not paid off yet but I am at 80% equity. My loan technically has 8 years 4 months to go but I hope to be done in 4 years. Had some personal setbacks that slowed up this process, but the light is at the end of the tunnel.
Posted By: Hugh Jorgan

Re: Who has paid off their house? - 07/01/19 09:05 AM

i just sold my childhood home in Mesquite (that i inherited last year) . The driving factor to sell was the property taxes were $3,500.00 per year, and i didn't want to deal with renters tearing it up.

I like it much better here in Wills Point where the taxes are only $600. yr, with more land and no code enforcement.
thumbs
Posted By: basketcase

Re: Who has paid off their house? - 07/01/19 11:01 AM

lost my job in December, paid off the house and car in February. Best things I ever did.
Posted By: GoodysGotaCuda

Re: Who has paid off their house? - 07/01/19 11:05 AM

About another 18 years or so to go. chargerwork
Posted By: 3hundred

Re: Who has paid off their house? - 07/01/19 11:13 AM

Paid off the first house in 2003, bought this one in 2009 at the financial depths. Sold the first house a few years ago when the market was hot, paid this one down with the proceeds, 7 payments left.

Taxes ($868 / month and rising rapidly, 10% this year alone) will force us out in retirement, gotta figure out where to go then.

Robert
Posted By: not_a_charger

Re: Who has paid off their house? - 07/01/19 11:17 AM

Nope. Not worth paying it off. I have about 60% equity. My mortgage rate is fixed, 3.5%. If my situation required me to pay off my house, I would be able to do so today, but I make more money investing the amount I owe than I pay in interest, so I come out ahead. No debt other than the mortgage. Well, technically the credit cards are debt, but they are paid in full every month. No interest accrues, so it's just an interest-free loan for me.
Posted By: BIGGERED

Re: Who has paid off their house? - 07/01/19 11:18 AM

Best thing I ever did was refi my thirty year down to 10 and paid it off early but a couple years later I upgraded.

New place was 215k but taxes are $8200 a year.

blush

Red
Posted By: RWG75

Re: Who has paid off their house? - 07/01/19 11:49 AM

Paid it off in 2004 when I was 41. I went a little nuts to do so because the writing was on the wall about my fat check, high stress corporate gig going poof. Put every dime I could squeeze out of a nickel on it. On the upside, saved like 80% of the full term interest and nothing like knowing the roof over yer head is actually your roof, not the banks. On the downside, my ability to endure the corporate stupidity went way down and no doubt hastened my eventual down sizing by a year or two.

Another couple of years with a fat check and no mortgage would have feathered the retirement nest pretty nicely but it's not exactly uncomfortable now. The best thing was that it positioned me to take zero stress bs jobs for 1/3 the pay and not really care - about much of anything. Well almost. Got walked out of the last one for "gross insubordination" because I really didn't have any reason to keep my opinion about the idiot manager to myself. It was an ok gig, decent coin and not the way I wanted to go out but I embraced my retirement before getting to the parking lot.
Posted By: 70BIRD

Re: Who has paid off their house? - 07/01/19 12:31 PM

I actually am going to the bank this Friday to make my last payment, can't wait!
Posted By: 69hemibeep

Re: Who has paid off their house? - 07/01/19 12:40 PM

I did three years ago and what a good feeling!
Posted By: 62maxwgn

Re: Who has paid off their house? - 07/01/19 01:15 PM

Paid off my first house in 15 yrs,sold it for 4 times what I paid for my present home.Bought this one for about 1/4th. market price in 88 only because the owner's son got divorce and needed to get out what was owed on mortgage,haven't had a house payment in the past 40 yrs.No credit card debt,everything paid in full monthly,owe nobody anything,all's good! shruggy
Posted By: oldjonny

Re: Who has paid off their house? - 07/01/19 01:27 PM

Paid mine off last year. Taxes continue to climb. Over $500 a month in beautiful Michigan for what seems like nothing. Township is always crying about not having enough money and yet, houses keep being built, which means more tax base, and still never enough. Was 58 when I paid mine off and not looking to get back into another payment anytime soon. At this point in my life, I owe nobody anything.
Posted By: justinp61

Re: Who has paid off their house? - 07/01/19 01:28 PM

Originally Posted by 69hemibeep
I did three years ago and what a good feeling!


Yes it is, I paid mine off three years ago in May, I was 55 at the time. My 14 Ram was paid off last year in January, it's about wore out with less than 19K miles on it, lol. I have considered trading for a new 19 and have it paid off before I retire.

My house isn't large by any means, but it's plenty for my wife and I. We live on eight acres with the house, my shop and a small barn. The shop is 36 X 54 and I wish it was 60 X 80, LOL.
Posted By: 340SIX

Re: Who has paid off their house? - 07/01/19 01:36 PM

Paid it off late 2005. Taxes are 400 a,year gas, 34 water 85 2 month's as garbage and taxes 2 parks are also on it and electric was 106.
No car notes.
Home insurance and car are what kills us. Everyone drives bad and has no license or has has nothing. But the SOB has a car or truck. Some just hit you and hop skip swim or jump back across the border. Yes I am sore
Lol.
My flood is 500 bucks in a flood zone since I elevated the home and did tons of things to midagate future damages to.the home.
I set myself up starting with a,home and staying in it. Almost everyone who lived here when I bought is gone. Or homevwentvto carp.
I would loose if I sold as over built. But not selling. Kinda like our cars here at Moparts.
It is small but the nicest one here.and I can live on next to nothing if need be.
Posted By: Neil

Re: Who has paid off their house? - 07/01/19 01:50 PM

Many people have no intention of paying off anything.. There are radio station ads from credit unions and banks encouraging peeps to come on down and borrow against their house to buy that new boat, side by side, European vacation etc.
Posted By: TJP

Re: Who has paid off their house? - 07/01/19 02:38 PM

Took the money out of savings several years back and paid it off. Then we put the monthly payment back into savings . Within about 3-4 years the savings balance was back where it was smile Smartest thing we've done in awhile.

Property taxes ?? Need to start a new post on that, ours just jumped 30% again to 550.00 a month. My first house payment was 850.00 and that was in Calif shock
It has me thinking of jumping ship to another area, preferably with little to no snow winters as well
Posted By: klunick

Re: Who has paid off their house? - 07/01/19 02:58 PM

Bought our house in 97 on a 30 year mortgage. Refi'd it in 2002 to a 15 year mortgage so it is paid for now and just got the garage paid for this year so minus taxes and insurance, we are in the clear. Not a McMansion though.
Posted By: ScottSmith_Harms

Re: Who has paid off their house? - 07/01/19 03:37 PM

Quote
has me thinking of jumping ship to another area, preferably with little to no snow winters as well


One problem is that we are running out of places to run to.
The people whom have worked thier entire lives to get somewhere
are being pushed out of thier (paid for) homes by taxation to support
the invading masses that are taking over. Its a sad situation. .02
Posted By: 340SIX

Re: Who has paid off their house? - 07/01/19 03:47 PM

Originally Posted by ScottSmith_Harms
Quote
has me thinking of jumping ship to another area, preferably with little to no snow winters as well


One problem is that we are running out of places to run to.
The people whom have worked thier entire lives to get somewhere
are being pushed out of thier (paid for) homes by taxation to support
the invading masses that are taking over. Its a sad situation. .02

I will keep with the no talking about Gov stuff here.
With the exception of.....we here are pushing the Parish and City to freeze the taxes at what they are for retired or disabled so this does not happen.
So far no dice.
Posted By: Mastershake340

Re: Who has paid off their house? - 07/01/19 03:59 PM

My house would have been paid off earlier this year, however I did a cash out refinance in 2008 just before the market crashed, to take out equity to tear down my tired 2 car garage and build a new 3 car garage, and remodel my kitchen which desperately needed it. If I had it to do over again, I still would have, because the garage and kitchen have both improved my quality of life quite a bit.
As it is, I have paying off what is left on my mortgage and a small amount of balance left on a HELOC on my to-do list. I just haven't figured out which pot to pull the money out of but I'll get to it.
Property taxes are the sore issue here. Mine are going up this year due to a school referendum that my neighbors voted for last year. There was no talking sense to anyone when you had a herd of soccer moms crying in their best Sally Struthers voices "It's for the Chiddrennn, how can anyone be so cruel not want to support the childdrennn!" Only way I will ever get any relief is to pack up and move. Even after paying off the mortgage, paying $500+ a month for property taxes, paying a lawyer every year to contest my taxes from going up every year even more, on a 1300 square foot house (not including my finished basement, at least they don't count basements here in your square feet), in a neighborhood where property values are still 20% below where they were 12 years ago is not something I want to do much longer.
Posted By: Fat_Mike

Re: Who has paid off their house? - 07/01/19 04:12 PM

Yep, we scrimped and saved a pretty good chunk of change before I retired from the military (Jan 2010). Not knowing what my future might hold, the idea was to either pay off the house, or have a sizable cushion to keep our finances stable. We were able to save enough to pay off the house (+) so that's what we did. Having said that, we drove a 1998 mini van (until 6 months ago, actually) and my 2001 Ram, so no bills other than typical household stuff. As far as taxes go, without exemptions, I'd pay about $800 per year. Insurance in FL can be expensive although mine is only around $1,200 per year. However, with the influx of people from high-tax states, I feel like the days of affordability in FL are numbered...and I'll leave it at that.
Posted By: RUNCHARGER

Re: Who has paid off their house? - 07/01/19 04:14 PM

I pay $200 per month tax, then heating and electricity. Things could be a lot worse but it's enough too. What cracks me up is people that pay big bucks to live in a condo or apartment, The value of the 2X4's, drywall and plumbing that make up that living area isn't anywhere near what those people pay. A lot of people just have no sense of value these days.
Posted By: not_a_charger

Re: Who has paid off their house? - 07/01/19 04:35 PM

Originally Posted by RUNCHARGER
I pay $200 per month tax, then heating and electricity. Things could be a lot worse but it's enough too. What cracks me up is people that pay big bucks to live in a condo or apartment, The value of the 2X4's, drywall and plumbing that make up that living area isn't anywhere near what those people pay. A lot of people just have no sense of value these days.


Or they want maintenance-free living, no yard work, etc. and/or more flexibility when it comes to moving (paying rent vs. owning). It's not for me, but there are things about it that appeal to some folks.
Posted By: DynoDave

Re: Who has paid off their house? - 07/01/19 04:58 PM

Paid off just a few months ago, just as my job was leaving the state. Good timing.

A couple of no-cost refinances to get lower rates along the way, took money out during one refinance to pay for a 2nd garage, still paid off 4.5 years early.

It ain't much. As a matter of fact, it needs a lot of work. But it's awful nice not having that big payment hanging over my head every month.
Posted By: second 70

Re: Who has paid off their house? - 07/01/19 05:14 PM

Paid mine off in 1990 at the age of 33. The 9.75% interest rate I had back then was towards the low end. I drove $100 cars and ate a lot of peanut butter but it saved me over $100k over the life of the loan. Still live in same house and just installed my third roof and redid my kitchen for the second time. Lol Current taxes are $400 a month.

Mike
Posted By: wylde8

Re: Who has paid off their house? - 07/01/19 05:24 PM

I paid mine off last year when I was 39. My place isn't big or trendy, but I've done quite a bit to it and I like it. The only thing that sucks is property values really haven't risen in my area. I bought my house in 2004 and I don't think its appreciated at all in that time. Not far away, I also own a 6+ acre lot that I bought during the economic meltdown, and even it doesn't seem to have gone up in value any since my purchase.

The good thing about having it paid off is it gives me options I didn't have before. Soon, I'm going to be moving down to Miami to go back to school full time so I can stop using the worthless finance degree I have. I can't afford Miami real estate so I'll be renting during my stay while also keeping my house in St. Louis. There's no way I could pull that off if I didn't have my house paid off. Living without income is difficult enough even without a mortgage.
Posted By: jcc

Re: Who has paid off their house? - 07/01/19 06:26 PM

Originally Posted by wylde8
I paid mine off last year when I was 39. My place isn't big or trendy, but I've done quite a bit to it and I like it. The only thing that sucks is property values really haven't risen in my area. I bought my house in 2004 and I don't think its appreciated at all in that time. Not far away, I also own a 6+ acre lot that I bought during the economic meltdown, and even it doesn't seem to have gone up in value any since my purchase.

The good thing about having it paid off is it gives me options I didn't have before. Soon, I'm going to be moving down to Miami to go back to school full time so I can stop using the worthless finance degree I have. I can't afford Miami real estate so I'll be renting during my stay while also keeping my house in St. Louis. There's no way I could pull that off if I didn't have my house paid off. Living without income is difficult enough even without a mortgage.


Sorry to hear that, hope everything works out. eek panic

( the key word above is Miami) laugh2
Posted By: 4406bbl

Re: Who has paid off their house? - 07/01/19 07:39 PM

Never made a house payment, always cash. So age 24, it was not much of a house. The bank has never held a note on my business, or its property, since 1905. I was told by the old germans own your property, make payments on your junk. I listened too good, last real loan I had was in 1987 for the snow plow on my truck, made money with that. Bought a new house 10 years ago, cash. My kids live free in my extra properties, expecially my girls, until they can afford to pay cash for their house. My parents lived next to the business, for free. That is how you build family wealth. We will have to sell everything when we retire and leave this state, taxes are 5 grand on the old, about the same on the new. It is so fun to listen to all the broke people tell me how lucky I am, no just not stoopid.
Posted By: John_Kunkel

Re: Who has paid off their house? - 07/01/19 08:02 PM

Paid off my 30 year loan in 15 years and 8 months. Great to be free of debt.
Posted By: stumpy

Re: Who has paid off their house? - 07/01/19 08:04 PM

Bought my house in 1990 paid half up front. Payments ended up at $250 a month including insurance and taxes. Paid it off 10 years early and relaxed and retired. Taxes locked in with homestead exemption. No worries about where we'll live the rest of our lives. Biggest issue I have seen with home ownership is people talked into buying way more house then they need and if something happens to their income they lose it all.
Posted By: not_a_charger

Re: Who has paid off their house? - 07/01/19 08:47 PM

Originally Posted by stumpy
Bought my house in 1990 paid half up front. Payments ended up at $250 a month including insurance and taxes. Paid it off 10 years early and relaxed and retired. Taxes locked in with homestead exemption. No worries about where we'll live the rest of our lives. Biggest issue I have seen with home ownership is people talked into buying way more house then they need and if something happens to their income they lose it all.


Yep. We know many people who are house poor. They have beautiful, large homes, but they can't afford enough furniture to fill them, or they can't afford to buy a car so they end up leasing, or they have credit card debt up to their eyeballs, or all of the above. I could afford a newer/nicer house than we have, but I wasn't going to do that and sacrifice financial security. If we both lost our jobs today, I could write a check and pay off my house without any worry. We're way ahead on retirement savings for our ages (47 and 46), too. Getting ready to start paying college tuition in 2 more years, all the more reason to stay in our current, very affordable home.
Posted By: Neil

Re: Who has paid off their house? - 07/01/19 09:01 PM

Many boomers here bought bigger/nicer homes AFTER their kids left. There are 2 people living in new homes with 3x the space they could ever need with a garage full of all the latest toys and likely a bunch of it is there based on loans taken out against the house. There are large neighborhoods one after the other like this. I bet they have next to zip for savings and are hoping to turn all that crap into a profit someday. People coming up behind them have a much different set of values so good luck with that..
Posted By: Dcuda69

Re: Who has paid off their house? - 07/01/19 09:42 PM

Originally Posted by not_a_charger
Originally Posted by stumpy
Bought my house in 1990 paid half up front. Payments ended up at $250 a month including insurance and taxes. Paid it off 10 years early and relaxed and retired. Taxes locked in with homestead exemption. No worries about where we'll live the rest of our lives. Biggest issue I have seen with home ownership is people talked into buying way more house then they need and if something happens to their income they lose it all.


Yep. We know many people who are house poor. They have beautiful, large homes, but they can't afford enough furniture to fill them, or they can't afford to buy a car so they end up leasing, or they have credit card debt up to their eyeballs, or all of the above. I could afford a newer/nicer house than we have, but I wasn't going to do that and sacrifice financial security. If we both lost our jobs today, I could write a check and pay off my house without any worry. We're way ahead on retirement savings for our ages (47 and 46), too. Getting ready to start paying college tuition in 2 more years, all the more reason to stay in our current, very affordable home.


Yep! ^^^ When we built ours(1989) the bank said "you know,you guys could build more house if you want" We said no, we want to eat and do other things besides make big payments.We are still in that house,was paid off years ago before our kids went to college. 1900 sq ft, 3 bed,2.5 bath,4 car attached, 1 acre in a small town. 3k in taxes. Worth triple what we paid to put it up. Houses like ours,where we are, sell like mad above asking price. I'm not going anywhere.
Posted By: Soopernaut

Re: Who has paid off their house? - 07/01/19 10:35 PM

I'm thinking about paying my house off. The interest was tax deductible until this year, as I took the standard deduction. My payments are only $363/mo including taxes and insurance, so not a huge amount. I have a 20 year loan (lower interest rate than a 15) and bought the house in 2017. I also got a $10,000 forgivable loan for repairs as a collaboration between the mortgage company and the city. They deduct 20% per year as long as it is my primary residence for 5 years. I do not have to keep a mortgage since the loan is a separate mortgage that I make no payments on. If the economy tanks after the next election I may put more savings into discounted stocks rather than pay the mortgage off. Age 42
Posted By: RUNCHARGER

Re: Who has paid off their house? - 07/01/19 11:05 PM

We had to move to a higher cost area about 15 years ago. Even though we were set up pretty good I still didn't like it. In 08 I bought a 5 bedroom project from the bank and put a lot of sweat into it. Dumped it when things went up and now my wife and I live in an upscale 2 bedroom detached, freehold house free and clear. I agree that heating, cleaning and paying taxes on a bigger house than you need is not smart. It did work for us temporarily because of our end plan though.
Posted By: cudatom

Re: Who has paid off their house? - 07/01/19 11:54 PM

Paid mine off in late 2017. Then in the spring of 2018 my wife and I decided we wanted to be able to see the grandkids more so we bought a small condo in Florida. It will be paid off this yr and I will retire in December or January.
Have no desire to live yr round in Florida but I absolutely hate snow so I guess next yr we will become snowbirds.
Posted By: 70Challengerse

Re: Who has paid off their house? - 07/02/19 12:04 AM

Over 6-7 years now,debt free luv it... up
Posted By: TJP

Re: Who has paid off their house? - 07/02/19 12:22 AM

Originally Posted by ScottSmith_Harms
Quote
has me thinking of jumping ship to another area, preferably with little to no snow winters as well


One problem is that we are running out of places to run to.
The people whom have worked thier entire lives to get somewhere
are being pushed out of thier (paid for) homes by taxation to support
the invading masses that are taking over. Its a sad situation. .02


Proposition 13 is about the only thing I miss about Calif. A wonderful law that was voted in by 2/3 of the population. It put a STOP to the pin the tail on the donkey taxation that had been running rampant. I would love to see the same done here mad shout

Prop 13 kwik read
Posted By: Grizzly

Re: Who has paid off their house? - 07/02/19 12:29 AM

Originally Posted by nutso suave

How old were you when you paid off your home?


I was 31.

I really wanted to be able to say I had done it before 30, was on track, but ran into a 2 year slowdown at work.

2996 sq feet with 34 x 27 attached garage, 3 acres and soft water well. It's paradise, no wind, no noise, and only one neighbor. It's near the top-end for real estate here.

When I made the final lump sum payment I was concerned about having a big dent in my bank account. I got over it. wink Like a few of You above, I've never made a vehicle or "fun" purchase with financing. Everything gets paid in full.

But, on the vehicle note, with how complicated new vehicles are, I would suggest to lease a new vehicle and put the money you save from owning into your mortgage. At least if your new ride turns out to be a POS you can just give it back.
Posted By: RUNCHARGER

Re: Who has paid off their house? - 07/02/19 01:03 AM

Yup: Cars are temporary possessions and you can't live in them.
Posted By: DAYCLONA

Re: Who has paid off their house? - 07/02/19 03:32 AM

Payed my 30 yr mortgage off after 20 yrs best feeling ever to be debt free, I'm one that lives under the "Cash is King" rule, I've done my best to avoid the traps of credit cards, car loans, personal loans, home equity credit lines, etc, etc... my mortgage was about the only real "thorn" I had hitting my wallet over years, I don't care what accountants/money experts say about the "benefits" of NOT paying your mortgage off early are...all BS! IMHO, best thing one can do is be debt free, esp with a mortgage payment
Posted By: not_a_charger

Re: Who has paid off their house? - 07/02/19 09:31 AM

Quote
I don't care what accountants/money experts say about the "benefits" of NOT paying your mortgage off early are...all BS!


Nothing wrong with living under the "cash is king" mantra. Also nothing wrong with doing what I'm doing. I'm making a consistent 7% on the money that I could otherwise use to pay off the balance on my 3.5% mortgage. It's invested conservatively, easily accessible. How is that BS? shruggy
Posted By: Guitar Jones

Re: Who has paid off their house? - 07/02/19 10:12 AM

Due to divorces I've had to buy several houses over the years so never really had a chance to pay one off. I bought my current house at the height of the housing crunch for about half of what it sold for previously. In the last 11 years the value has come back some and I currently have about $100k in equity. We've saved enough for a healthy down payment on another house for our retirement in WV. Once this house sells I'll be able to pay the next one off.
Posted By: Fat_Mike

Re: Who has paid off their house? - 07/02/19 12:10 PM

Originally Posted by not_a_charger
Quote
I don't care what accountants/money experts say about the "benefits" of NOT paying your mortgage off early are...all BS!


Nothing wrong with living under the "cash is king" mantra. Also nothing wrong with doing what I'm doing. I'm making a consistent 7% on the money that I could otherwise use to pay off the balance on my 3.5% mortgage. It's invested conservatively, easily accessible. How is that BS? shruggy


It's not BS, of course. There are benefits to paying off a mortgage early. There are also benefits to investing money. Your strategy works, and long-term I'd guess you'll be better off.
Posted By: mopars4ever

Re: Who has paid off their house? - 07/02/19 12:19 PM

It is a personal decision. If it makes you feel better the house is paid for then go for it but you can`t fault someone for doing it differently from you. It is all about what your comfortable with. I personally side with it being paid off.
Posted By: HoosierTA

Re: Who has paid off their house? - 07/02/19 02:18 PM

I did a few years ago, but have an equity line on it. We did a kitchen remodel, which include taking down and exterior wall and bumping out. The house began as a 1971 3 bed ranch. We added a second story 15 years ago.

When it came time to remodel the galley kitchen, it seemed pointless. My builder from the past was not busy, so we went a little crazy. Farms aren't plentiful anymore in my county, but I always believed we would have more problems selling it with a small house (by today's standards). with four bedrooms and a modern kitchen, we would have a different potential buyer.

I may pay it off before retirement, but it isn't that big a deal. I will have a generous pension, so penny pinching won't be a worry. Property taxes outside a city are much cheaper. I have no idea why people choose to live inside a corporate limit.
Posted By: NoFrills

Re: Who has paid off their house? - 07/02/19 03:05 PM

I've bin paid off for the last 10+ years. Bought a house that I could afford at 23. Was paid off in less then 10 on on 30 year mortgage. I sleep better at night knowing it's done. Now if I could only get rid of the 11k properly tax.
Posted By: wylde8

Re: Who has paid off their house? - 07/02/19 05:26 PM

Originally Posted by jcc


Sorry to hear that, hope everything works out. eek panic

( the key word above is Miami) laugh2


Thanks jcc. Its going to be a huge adjustment, but I'm really looking forward to it. If Miami experiences a real estate drop like they did in 2008, I could afford something, but I can't swing their insane real estate prices the way the market is now. Either way though, I'll be in Miami!
Posted By: rickseeman

Re: Who has paid off their house? - 07/02/19 05:54 PM

I don't think I pay any property taxes. (Of course my house isn't much either.) But if you have to put up with living in Arkansas I don't think you should have to pay any property tax.
Posted By: 68SportFury

Re: Who has paid off their house? - 07/02/19 07:16 PM

Coming up on a year since I paid mine off. Took a shade over 21 years, thanks to a refi in year seven where I went from a 30 at 8% to a 15 at 5.5%.

I still have to pony up for homeowner's insurance and property taxes, but both of those together are still over $6k cheaper than a year's worth of mortgage payments. It's like I got a raise!
Posted By: Ramrod39

Re: Who has paid off their house? - 07/03/19 12:45 AM

Paid mine off about 10 years ago, 15 years early. Property tax is about 2K per year. Write a check for it when it is due. Have been 100% debt free since I paid off the house, don't owe a nickel to anyone. That's my comfort zone. Disposable and investment cash is easy to come buy when you don't have debt. twocents
Posted By: BSB67

Re: Who has paid off their house? - 07/03/19 12:49 AM

I took out a 30 year mortgage about 3 years ago. So I have awhile before i'm paid off. It really does not bother me, but I guess if my situation changes I could feel differently.
Posted By: Kidsixpack

Re: Who has paid off their house? - 07/03/19 02:18 AM

We had our last house paid off for about five years. It was a pretty great feeling. We moved and spent an additional 140k three years ago. This will be our retirement home. We’re on track to have it paid off close to the end of the year. I really can’t wait!
KID
Posted By: SomeCarGuy

Re: Who has paid off their house? - 07/03/19 11:01 AM

Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.
Posted By: not_a_charger

Re: Who has paid off their house? - 07/03/19 12:20 PM

Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


wink
Posted By: HoosierTA

Re: Who has paid off their house? - 07/03/19 01:16 PM

Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I think any research of self made millionaires will find paying off their home early is a common denominator. Those who pay off their homes are managing their money in other areas too.

Then again, there are people who decide to pay off debts by the interest rates, rather than the balance. Must make them feel like Wall Street tycoons.
Posted By: 69hemibeep

Re: Who has paid off their house? - 07/03/19 01:18 PM

Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.
I packed my retirement instruments pretty well, that aside when you pay into a mortgage there is a point where there is little intrest to deduct and that's when Its time to pay it off or start over. I wanted to retire
Posted By: moparx

Re: Who has paid off their house? - 07/03/19 02:56 PM

we bought our house [built in 1872] in 1983 when the interest rates were in the 20+% rates. We assumed the previous owners mortgage at 13 1/4% with a $2500 down payment.
over the years, we took advantage of lowered interest rates until we were at 5%.
when i got sick [around 2000], we paid it off in case i had to quit work. as it worked out, i was able to stay working until 2014.
however, the money we saved from not having a mortgage payment, was quickly eaten up by doctor and hospital bills.
my wife and i are doing pretty good living on a fixed income, but we never know when a big medical bill will rear it's ugly head.
i have to be pretty judicious when it comes to "toy money" spent.
beer
Posted By: not_a_charger

Re: Who has paid off their house? - 07/03/19 03:31 PM

Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I think any research of self made millionaires will find paying off their home early is a common denominator. Those who pay off their homes are managing their money in other areas too.

Then again, there are people who decide to pay off debts by the interest rates, rather than the balance. Must make them feel like Wall Street tycoons.




Between Roths, 401k, and 403b, we've got a very significant amount banked for retirement thus far, and we're 47 and 46. That doesn't account for anything we will get from SS, and it doesn't account for my wife's pension, either. I know how much all of the public school teacher haters LOVE that. laugh2 We've got a good amount set aside for our daughters' college funds as well. They are 16 and 11. Paying our house off right now simply to be debt free when I am only paying 3.5% on the mortgage to begin with would not be a sound financial move, not when I can take the $$ I owe on the house and make more than 3.5% with it, and do so with low-risk investments.

I'll never understand why so many of the "cash only" folks (not you) get so bent out of shape about this topic. No one ever criticizes the cash only approach, other than pointing out that if you do need credit for some reason, or a credit card for some reason, you may have some difficulty getting it. Meanwhile, some of the cash only folks rage against what I'm doing. LOL it seems to be working out just fine for me. Still waiting to hear how it's "BS." whistling
Posted By: KWF340

Re: Who has paid off their house? - 07/03/19 04:39 PM

Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.


I'm not there yet but on my way. Paid off my first house in 2007 and then sold it in 2010 to move into a new build. Since 2010 I've been maxing my retirement contributions (SEP and catch-up) and also paying extra on the house. Should be paid off in 2 years at the current rate.
Posted By: second 70

Re: Who has paid off their house? - 07/03/19 04:40 PM

Originally Posted by 69hemibeep
Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.
I packed my retirement instruments pretty well, that aside when you pay into a mortgage there is a point where there is little intrest to deduct and that's when Its time to pay it off or start over. I wanted to retire


Those accounts weren't available when I bought my home in 1980. There were savings and loans paying 13% plus in interest then and no end in site. (we now know how that story ended). If you had a fixed mortgage under 10% you were lucky. A 30 year loan is front loaded with interest and after 10 years the amount still owed is only a few thousand less than the original loan. Just paying a few extra dollars each month will take years off the loan. Too many people kept trading up ever 5 years with the free money until the bottom fell out and ended up with loans they couldn't afford and houses they were upside down in and couldn't sell.

When the 401,403, 457 and Roth Ira became available since I didn't have a house payment I was able to max them out for 20 years instead of making a house payment. Had friends take out loans on paid off houses in late 90's when loans got cheap and invested in the tech boom. Didn't become the instant millionaire's they though they would and some still have another 10 years left paying on a house that was paid for 20 years ago.

Total return for S & P 500 Dec. 1, 1999 - Dec 31, 2009 -2.72% if you reinvested the dividends you only lost .95% for a 10 year investment.

As far as writing off interest being a good idea, just think if your taxes are 33% out of every dollar you pay the bank you get .33 back in taxes and they get .66 cents. Why not pay the .33 taxes and keep the .66 cents instead.
Posted By: blaze

Re: Who has paid off their house? - 07/04/19 12:21 AM

We paid off our mortgage 5yrs ago at age 46. Now just the monthly stuff, phone, lights, internet. Taxes and insurance are both about $1400.00/yr. It's a good feeling to be rid of that payment.
Posted By: poorboy

Re: Who has paid off their house? - 07/04/19 03:14 AM

We paid off out house about 3 years ago, about the time my wife retired from work. Our house is a business property, we have to redo the financing every 7 years (the only option available in this town for business zoned property), and it was time to do the refinancing again (would have been the last redo). We pulled money out of a savings account that was growing at 1%, when the interest on the house loan was almost 4% with the likelihood of increasing. With my upcoming retirement and the ability to deduct the interest from the house loan disappearing, it made sense to me. I retired late last year. Not having that monthly house payment sure helps us on this fixed income. Gene
Posted By: nutso suave

Re: Who has paid off their house? - 07/04/19 04:58 AM

I've been maxing out my 401k, Roth IRA, and have some other savings and investments...but who knows how much is enough? Im 43 and hoping to partially retire to a less lucrative part time job at some point. I don't owe on my vehicles but owe on a rental property. Owning things outright makes me sleep better, but it's not necessarily the best plan or the plan for everyone.

I was just pumped to pay off my house once the interest payment no longer offered a tax break. laugh
Posted By: 68Cbarge

Re: Who has paid off their house? - 07/04/19 12:26 PM

I no longer have a mortgage since I sold the house as part of my divorce. No wife,no home,no stress.!! LOL!
I offered to buy her half out but she would not hear of it.

Homeless and very happy to be!
Posted By: 11secdart

Re: Who has paid off their house? - 07/05/19 01:08 PM

Bought my house in 93 put a second level on back in 04 its almost paid off, my wife adds extra to each monthly payment and we refinanced at a low rate a couple years ago so our monthly payment is reasonable. We could pay it off now if need be but advisors have said keep your money in the bank and other accounts for now especially with a low interest rate. I will be retiring in the next few years we hope to have it paid off by then. Theres a completely remodeled ranch style house across the street from me thats renting for over double a month what our mortgage payment is each month. Makes me glad I bought my house when i did as the value has increased dramatically.
Posted By: RWG75

Re: Who has paid off their house? - 07/05/19 01:23 PM

I started my 401k early and invested conservatively so the compound interest over the decades worked out. Yes, a lot of money that could have gone in there went on the mortgage and the fat corporate pay check went poof before I could balance that out a little better. I'm good with that as making the mortgage payment on the bs thin check gigs I've taken since would have been tight and / or dug in to cash reserves. It also balances in how much money I didn't spend on mortgage interest - like $160k. Between pension, 401k and soc sec I should out live my money. One contingency plan is taking a reverse mortgage and living off the 100% equity.
Posted By: moparx

Re: Who has paid off their house? - 07/05/19 02:34 PM

i was wondering about a reverse mortgage type of thing. that would be one less thing my heirs would have to contend with.
anyone have experience with this ?
beer
Posted By: Cometstorm

Re: Who has paid off their house? - 07/05/19 04:55 PM

Paid off 15 years ago: I’m 66, retired in 2008. Wife 61, still works but doesn’t have to.

House 2000 square feet on three acres. Worth around $375k

Yearly real estate state tax around $3400. Three cars, but no payments in over 35 years.

We charge everything we can to our Visa, pay it off every month, and get about $1200
a year back in cash rewards.

Have about 45% investments in cash, laddered CD’s, hard gold and silver, EE savings bonds.

Remainder in GASFX, NÉE, FSDAX, FSKAX, AT & T, AEE

Life pretty darned good...
Posted By: JDMopar

Re: Who has paid off their house? - 07/06/19 12:45 AM

Paid mine off in 2000, when I was 43. Bought a 2004 Dodge quad cab diesel in late 2003, and built a detached garage bigger than my house in 2007. I was still in the line crew at the time, and saved all of my overtime money to help pay of the house, buy the truck and build the garage. It was nice to pay it off, as it was getting to the point that deducting the mortgage on taxes wasn't worth it anymore. I tell all the young guys at work to pay their homes off ASAP, so they can quit working for the evil empire if they want.
Posted By: 67RT

Re: Who has paid off their house? - 07/06/19 02:27 AM

I paid mine off about 3 years ago. I've lived in this house 19 years now, hard to believe. I wouldn't mind buying another place as an investment property, housing prices here keep going up so it is hard to find one. When I bought my house in 2000 it was $68K. I probably wouldn't sell it for under $200K now, there is a house around the corner for sale for $207K and it doesn't have a garage. I'm shocked at the amount some folks in this thread are paying for taxes, it seems outrageous. My taxes are $800 a year for 1,400 sq ft house and 900 sq ft garage on 1/3 acre in a city with fire, police, etc. and they even pick up the trash (included in the taxes). I'm 20 minutes from downtown Charleston and 30-40 minutes from the beach...no wonder so many people are moving here.
Posted By: DAYCLONA

Re: Who has paid off their house? - 07/06/19 04:48 AM

Originally Posted by moparx
i was wondering about a reverse mortgage type of thing. that would be one less thing my heirs would have to contend with.
anyone have experience with this ?
beer



Of the few associates and family members who I know went this route, it wasn't the "Golden Parachute" they had hoped it was going to be....

My In-laws having had the mortgage paid off before retirement, hadn't the pension/savings to cover retirement/medical expenses after a few years, I had proposed they sell their home, the market price sales yield and tax benefits could of had them in an affordable condo/townhouse along with a substantial savings deposit to invest/live off of...but old school pride got the best of them, and the lure of a reverse mortgage keeping them in their home was all too easy, the old man thought they' be dead before the note came due.... long story short, they lost everything they lived/worked for, only to end up in an assisted living home

An associate is going thru the same thing with his reverse mortgage, his note is due on his home, he has no recourse other than pack up what little he has left and move him/wife out, to live with his daughter/son-in law....

I've yet to hear from someone that "it was the best thing they ever did"...
Posted By: moparx

Re: Who has paid off their house? - 07/06/19 02:51 PM

thanks for the heads up dayclona ! bow
i had a sneaky suspicion something was not quite kosher.
beer
Posted By: Doc Fiberglass

Re: Who has paid off their house? - 07/06/19 04:05 PM

Originally Posted by DAYCLONA
Originally Posted by moparx
i was wondering about a reverse mortgage type of thing. that would be one less thing my heirs would have to contend with.
anyone have experience with this ?
beer



Of the few associates and family members who I know went this route, it wasn't the "Golden Parachute" they had hoped it was going to be....

My In-laws having had the mortgage paid off before retirement, hadn't the pension/savings to cover retirement/medical expenses after a few years, I had proposed they sell their home, the market price sales yield and tax benefits could of had them in an affordable condo/townhouse along with a substantial savings deposit to invest/live off of...but old school pride got the best of them, and the lure of a reverse mortgage keeping them in their home was all too easy, the old man thought they' be dead before the note came due.... long story short, they lost everything they lived/worked for, only to end up in an assisted living home

An associate is going thru the same thing with his reverse mortgage, his note is due on his home, he has no recourse other than pack up what little he has left and move him/wife out, to live with his daughter/son-in law....

I've yet to hear from someone that "it was the best thing they ever did"...


It was a long nite for me and I might be a little slow .... what is this NOTE IS DUE ?

I have a bud considering this .... isn’t this clearly stated ? From the Selleck ads - it suggests you live in your house until you pass THEN this note is due.

????
Posted By: moparx

Re: Who has paid off their house? - 07/06/19 04:27 PM

the guy that has property across the alley from me, and the rear section of what was once my plot many, many years ago, has hinted more than once he is interested in buying my place.
he owns many properties in the big city, as well as a very successful painting business, and i keep telling him i'm fixing up my place for him when i croak.
it would be kinda nice if i could work out a deal with him that would allow me to stay here until i croaked, or ended up in a home, but i have no idea if this would even be possible, legally.
trying to get it so it's as painless as possible for whomever has to take charge of my/our [gotta include the boss] "stuff" when that time comes.
beer
Posted By: DAYCLONA

Re: Who has paid off their house? - 07/06/19 05:04 PM

Originally Posted by Doc Fiberglass


It was a long nite for me and I might be a little slow .... what is this NOTE IS DUE ?

I have a bud considering this .... isn’t this clearly stated ? From the Selleck ads - it suggests you live in your house until you pass THEN this note is due.

????



Generally that's the idea "suggested", reverse mortgages can vary in terms and pay out, lump sum, line of credit when needed, monthly payments to you, or a combination of terms, etc, etc, etc.... generally with a 10 year limit term, but what seems to happen is the money drys up from unplanned/unforeseen living/medical expenses, the home owners no longer have the funds to survive let alone maintain the home's insurance and tax and utility burdens, basically they are forced to relinquish their home to the reverse mortgage lender, much like a voluntary foreclosure or short sale on a standard mortgage...

If you can plan out the money to out last you, then a reverse mortgage might be ideal? keep in mind you usually only receive 50% of the whole equity value your home has... IMHO reverse mortgage lenders are just vultures waiting for their moment, it doesn't matter to them if your dead or alive when your monies are gone ( the "note is due" so to speak because you usually have no collateral to acquire other funds and debt is mounting on many fronts), and like a Las Vegas casino, the "house" always has the upper hand and wins all the time, think hard before you take the gamble...
Posted By: moparx

Re: Who has paid off their house? - 07/07/19 02:12 PM

things i never knew, so that gives me more to think long and hard about.
beer
Posted By: Doc Fiberglass

Re: Who has paid off their house? - 07/07/19 04:13 PM

50% of the FMV of the property? ... and all the other BS ... Tom Selleck should be ashamed ! He’s a smart guy who would have or at least SHOULD HAVE checked out all the fine print !

That ad of his is almost TOTALLY FALSE ! ... it IS a trick to get your property !

This gives being VULTURES new meaning
Posted By: SomeCarGuy

Re: Who has paid off their house? - 07/08/19 04:06 AM

Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I think any research of self made millionaires will find paying off their home early is a common denominator. Those who pay off their homes are managing their money in other areas too.

Then again, there are people who decide to pay off debts by the interest rates, rather than the balance. Must make them feel like Wall Street tycoons.





Post up that research.
Posted By: second 70

Re: Who has paid off their house? - 07/08/19 02:43 PM

That's how it worked for my brother and I. It's not so much about what you make it has a lot to do about how much you keep.
Posted By: HoosierTA

Re: Who has paid off their house? - 07/08/19 07:08 PM

Originally Posted by SomeCarGuy
Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I think any research of self made millionaires will find paying off their home early is a common denominator. Those who pay off their homes are managing their money in other areas too.

Then again, there are people who decide to pay off debts by the interest rates, rather than the balance. Must make them feel like Wall Street tycoons.





Post up that research.



Dude! there are books written on it. The Millionaire Next Door" for one. Ramsey has confirmed it with a book published this year. Really his show is just an affirmation from the research by the author of the the book I referenced. I don't need to post it. Just get a library card. Good grief!
Posted By: HoosierTA

Re: Who has paid off their house? - 07/08/19 07:14 PM

Originally Posted by Doc Fiberglass
50% of the FMV of the property? ... and all the other BS ... Tom Selleck should be ashamed ! He’s a smart guy who would have or at least SHOULD HAVE checked out all the fine print !

That ad of his is almost TOTALLY FALSE ! ... it IS a trick to get your property !

This gives being VULTURES new meaning


You know I felt the same way when I saw Selleck hawking that. think "man, you don't have enough money? you stooped to this?" I don't see how a reverse mortgage is a sound idea.
Posted By: nutso suave

Re: Who has paid off their house? - 07/08/19 07:29 PM

I was interested in buying my elderly neighbor's house and having her remain there as a tenant, so I looked into reverse mortgages. There are many different terms available and most of them appeared to be a bad deal for the property owner. The few that paid a set amount as long as the person was alive, and did not allow the lease terms to be broken unless they passed away, were pretty morbid. They were generally aimed at older folks and as mentioned earlier the bank is playing the odds that the majority of owners will die long before they pay full value of the house.
Posted By: Fat_Mike

Re: Who has paid off their house? - 07/08/19 08:28 PM

Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I think any research of self made millionaires will find paying off their home early is a common denominator. Those who pay off their homes are managing their money in other areas too.

Then again, there are people who decide to pay off debts by the interest rates, rather than the balance. Must make them feel like Wall Street tycoons.





Post up that research.



Dude! there are books written on it. The Millionaire Next Door" for one. Ramsey has confirmed it with a book published this year. Really his show is just an affirmation from the research by the author of the the book I referenced. I don't need to post it. Just get a library card. Good grief!


My sister says "Rich Dad, Poor Dad" is another good book. I haven't read it.
Posted By: Iowan

Re: Who has paid off their house? - 07/08/19 09:41 PM

I bought my house at age 27 in 1987 and paid it off seven years later.
Posted By: SomeCarGuy

Re: Who has paid off their house? - 07/09/19 03:08 AM

Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Originally Posted by HoosierTA
Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I think any research of self made millionaires will find paying off their home early is a common denominator. Those who pay off their homes are managing their money in other areas too.

Then again, there are people who decide to pay off debts by the interest rates, rather than the balance. Must make them feel like Wall Street tycoons.





Post up that research.



Dude! there are books written on it. The Millionaire Next Door" for one. Ramsey has confirmed it with a book published this year. Really his show is just an affirmation from the research by the author of the the book I referenced. I don't need to post it. Just get a library card. Good grief!


So no research, only cottage industry “work?” Ok, dude.

I really don’t care what people do, until it effects me. I’m asked to pay for those that don’t save for retirement. You realize out of pocket healthcare costs alone are 250k+ in retirement? Of course you don’t. You listen to guys with a simplistic message. I read up on personal finance all the time.

To your idea on self made, you must not be aware of literally most anybody you can think of in business using other people’s money to build businesses. From bezos on down to guys I know with 10 million plus net worth and those that make a decent enough living, it’s other people’s money or it’s not happening.

If any of your heroes really advocate against compounding, my goodness. That’s not even including the loss of tax advantages by not funding accounts or not exceeding the standard deduction using mortgage interest as part of that. All to make a singular investment? Just flat out terrible, appalling financial advice from that crowd.
Posted By: Doc Fiberglass

Re: Who has paid off their house? - 07/09/19 03:25 AM

INTERESTING spin off of a house topic !

250k$ PLUS in retirement medical costs ??!! .... in some cases lots mOrE !

Ever ask yourself WHY IS THAT ?
Posted By: thecarfarmer

Re: Who has paid off their house? - 07/09/19 03:27 AM

Originally Posted by rickseeman
I don't think I pay any property taxes. (Of course my house isn't much either.) But if you have to put up with living in Arkansas I don't think you should have to pay any property tax.


LOL'd at that last sentence!

I just moved to Fort Smith from the Seattle suburbs three months ago. Was able to purchase a very modest little house with cash, and have enough left to put up a garage.

Of course, I now worry about tornadoes, after one came through town 200 feet south of my house - about three weeks after I bought the place!
Posted By: AndyF

Re: Who has paid off their house? - 07/09/19 03:29 AM

Originally Posted by SomeCarGuy
Anybody here with a paid for house do so while fully loading all retirement accounts to? You can load around 30k a year into those, maybe more with a spouse added. That’s going to be one short list, if any.

That explains the massive, gigantic, retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


I used to work in the finance department of a large corporation and this topic was one of the regulars at lunch. For middle class taxpayers it can be a very complex analysis. Rich people don't care and neither do poor people but folks in the middle have to navigate a bunch of conflicting tax laws and retirement account restrictions as well as employer match programs, financial aid considerations, etc.

There are some general rules that most people agree with such as pay off high interest debt first and always take the match, but after those general rules it gets more difficult. There isn't a good answer to the question about putting funds towards debt reduction vs. using those funds for additional investments. It is a question of deleverage vs. leverage. There is no answer to that question going forward, only in hindsight.

My personal approach was to fund the retirement accounts first, add to the kids college funds next, and then apply extra funds after that to the house payment. That approach worked for me but it didn't work for others.
Posted By: BSB67

Re: Who has paid off their house? - 07/09/19 11:00 AM

Originally Posted by AndyF


My personal approach was to fund the retirement accounts first, add to the kids college funds next, and then apply extra funds after that to the house payment. That approach worked for me but it didn't work for others.


Same here. Single income with stay at home wife and 3 kids. Seems to be working. Started the 401K and 529s in the early 1990s. Last one graduated from college in April. All three have good jobs and no college debt and I could retire at 62, but won't.

If only they let us put 25k/yr or more into our HSA's
Posted By: not_a_charger

Re: Who has paid off their house? - 07/09/19 12:59 PM

Originally Posted by BSB67
Originally Posted by AndyF


My personal approach was to fund the retirement accounts first, add to the kids college funds next, and then apply extra funds after that to the house payment. That approach worked for me but it didn't work for others.


Same here. Single income with stay at home wife and 3 kids. Seems to be working. Started the 401K and 529s in the early 1990s. Last one graduated from college in April. All three have good jobs and no college debt and I could retire at 62, but won't.

If only they let us put 25k/yr or more into our HSA's


Child care reimbursement, too. $5k limit per year is a joke.
Posted By: second 70

Re: Who has paid off their house? - 07/09/19 04:27 PM

How a post about who payed off their house turned into a healthcare and how business uses debt is funny. One an individual tax payer will never be able to write off debt as a business can. Amazon paid $ 0 taxes last year and GE hasn't paid any in over a decade. Try that as an individual on an hourly salary.

To go in debt on a house loan for a tax write off is terrible advise. To be able to buy a house to live in is another story. It's simple math. The average tax payer pays less than 20% effective tax rate. So here's the math you pay a bank $10,000 a year interest to get a $2,000 tax write off for a loss of ($8,000) which is -80% return. Now instead keep the $10,000 pay the $2,000 tax and keep the $8,000 extra you didn't pay the bank. Simple Plus if you're married and don't have over $24,000 in itemized deductions ($12,000 single) you get $0 tax break.
Posted By: Soopernaut

Re: Who has paid off their house? - 07/09/19 07:51 PM

Originally Posted by second 70


To go in debt on a house loan for a tax write off is terrible advise. To be able to buy a house to live in is another story. It's simple math. The average tax payer pays less than 20% effective tax rate. So here's the math you pay a bank $10,000 a year interest to get a $2,000 tax write off for a loss of ($8,000) which is -80% return. Now instead keep the $10,000 pay the $2,000 tax and keep the $8,000 extra you didn't pay the bank. Simple Plus if you're married and don't have over $24,000 in itemized deductions ($12,000 single) you get $0 tax break.


I must have been doing it wrong all those years. I wrote off the entire amount of interest I paid, not a percentage of the total. I've been doing that for 20 years.
Posted By: second 70

Re: Who has paid off their house? - 07/09/19 08:30 PM

Originally Posted by Soopernaut
Originally Posted by second 70


To go in debt on a house loan for a tax write off is terrible advise. To be able to buy a house to live in is another story. It's simple math. The average tax payer pays less than 20% effective tax rate. So here's the math you pay a bank $10,000 a year interest to get a $2,000 tax write off for a loss of ($8,000) which is -80% return. Now instead keep the $10,000 pay the $2,000 tax and keep the $8,000 extra you didn't pay the bank. Simple Plus if you're married and don't have over $24,000 in itemized deductions ($12,000 single) you get $0 tax break.


I must have been doing it wrong all those years. I wrote off the entire amount of interest I paid, not a percentage of the total. I've been doing that for 20 years.


Not doing it wrong. You write off $10,000 which would have been taxed @ 20% so your savings in tax is $2,000 even thou you paid $10 to get it. If you're in a 15% bracket your tax savings is only $1,500. Tax law changed last year and few people will have enough to itemize.

Lets say you have no interest to write off and make $100,000 and are taxed @ 20% your tax is $20,000. Now let's take the same income minus the $10,000 interest write off. $100,000 - $10,000= $90,000 @ 20% is $18,000 tax. For a savings of $2,000. You write off the entire amount but you only save what it would be taxed at. The lower your tax bracket the lower your savings will be.
Posted By: 4406bbl

Re: Who has paid off their house? - 07/10/19 04:01 AM

Originally Posted by second 70
How a post about who payed off their house turned into a healthcare and how business uses debt is funny. One an individual tax payer will never be able to write off debt as a business can. Amazon paid $ 0 taxes last year and GE hasn't paid any in over a decade. Try that as an individual on an hourly salary.

To go in debt on a house loan for a tax write off is terrible advise. To be able to buy a house to live in is another story. It's simple math. The average tax payer pays less than 20% effective tax rate. So here's the math you pay a bank $10,000 a year interest to get a $2,000 tax write off for a loss of ($8,000) which is -80% return. Now instead keep the $10,000 pay the $2,000 tax and keep the $8,000 extra you didn't pay the bank. Simple Plus if you're married and don't have over $24,000 in itemized deductions ($12,000 single) you get $0 tax break.



Nice to see someone else that understands the math and how little people really can write off, but all think they are. I get tired trying to explain it. I own a business, small corporation, and believe me I cant do what the amazons and GEs of the world do, or I get an audit. If I pay myself too much in stock I get tagged for the business being a tax shelter.....duh that is exactly what it is. I feel I spend money better than the government.
Posted By: BSB67

Re: Who has paid off their house? - 07/10/19 06:59 PM

Originally Posted by second 70


To go in debt on a house loan for a tax write off is terrible advise.


I noticed that you edited your post to acknowledge that there is no tax write off.

Yes, very simple. But I've never heard of people giving that advise, or people taking that advise or position.
Posted By: second 70

Re: Who has paid off their house? - 07/10/19 07:22 PM

Originally Posted by BSB67
Originally Posted by second 70


To go in debt on a house loan for a tax write off is terrible advise.


I noticed that you edited your post to acknowledge that there is no tax write off.

Yes, very simple. But I've never heard of people giving that advise, or people taking that advise or position.


That part was not edited. It was in response to a post about getting a new loan after the first one is older and not any interest to write off. As far as no tax write off that was unless you had over the $24,000 standard deduction you wouldn't itemize and use the interest at all.

Most people don't understand. If you have $30,000 in itemized deductions and your standard deduction is $24,000 you will only get credit for ($6,000) less taxable income than if you didn't have any write off. I've had coworkers come in with a new car and say it didn't cost them anything because the payment stayed the same. They couldn't understand they gave up a car that was paid for and had no payments with the new one that came with 3 more years of payments.
Posted By: BSB67

Re: Who has paid off their house? - 07/10/19 07:49 PM

Sure. The point was you went off on a the tax break advise when the tax deduction is essentially non existent for most.
Posted By: hooziewhatsit

Re: Who has paid off their house? - 07/10/19 07:54 PM

Originally Posted by second 70
Originally Posted by Soopernaut
Originally Posted by second 70


To go in debt on a house loan for a tax write off is terrible advise. To be able to buy a house to live in is another story. It's simple math. The average tax payer pays less than 20% effective tax rate. So here's the math you pay a bank $10,000 a year interest to get a $2,000 tax write off for a loss of ($8,000) which is -80% return. Now instead keep the $10,000 pay the $2,000 tax and keep the $8,000 extra you didn't pay the bank. Simple Plus if you're married and don't have over $24,000 in itemized deductions ($12,000 single) you get $0 tax break.


I must have been doing it wrong all those years. I wrote off the entire amount of interest I paid, not a percentage of the total. I've been doing that for 20 years.


Not doing it wrong. You write off $10,000 which would have been taxed @ 20% so your savings in tax is $2,000 even thou you paid $10 to get it. If you're in a 15% bracket your tax savings is only $1,500. Tax law changed last year and few people will have enough to itemize.

Lets say you have no interest to write off and make $100,000 and are taxed @ 20% your tax is $20,000. Now let's take the same income minus the $10,000 interest write off. $100,000 - $10,000= $90,000 @ 20% is $18,000 tax. For a savings of $2,000. You write off the entire amount but you only save what it would be taxed at. The lower your tax bracket the lower your savings will be.


Correct, with the minor caveat that tax brackets don't work like that, though it makes the example much easier laugh2 In reality, if you're in the 20% tax bracket, only the income within that bracket is taxed at 20%. The income within the lower brackets is taxed at their own rates. I know you know this, but I just want to clarify for anyone else reading it wink

Especially in business, there are a lot of things you can write off. But, you have to spend the money first, and the tax reduction is rarely 1:1 with the amount you spent.

-------

I think our rental is ~6 years ahead of schedule to get paid off, and the main property is ~6 years into a 20 year mortgage.

We do have some friends that lived cheap for about 7 years, then bought a fixer-upper for ~$110k, in cash. eek
Posted By: AndyF

Re: Who has paid off their house? - 07/11/19 04:12 PM

I came up with a method a few years back that gave me the benefits of having my house paid off while also keeping the benefits of not having it paid off. That trick worked for me but it probably doesn't apply to most people. It is something I'd recommend to others who have the cash on hand to pay off their mortgage though.
Posted By: DAYCLONA

Re: Who has paid off their house? - 07/11/19 07:21 PM

Originally Posted by AndyF
I came up with a method a few years back that gave me the benefits of having my house paid off while also keeping the benefits of not having it paid off. That trick worked for me but it probably doesn't apply to most people. It is something I'd recommend to others who have the cash on hand to pay off their mortgage though.



Do we wait for your "infommercial"?... or you already have the CD album of "Pay off your Mortgage, but keep the bennies" available for 3 easy installments of $96.49? inquiring minds are waiting smile
Posted By: not_a_charger

Re: Who has paid off their house? - 07/11/19 07:39 PM

Originally Posted by DAYCLONA
Originally Posted by AndyF
I came up with a method a few years back that gave me the benefits of having my house paid off while also keeping the benefits of not having it paid off. That trick worked for me but it probably doesn't apply to most people. It is something I'd recommend to others who have the cash on hand to pay off their mortgage though.



Do we wait for your "infommercial"?... or you already have the CD album of "Pay off your Mortgage, but keep the bennies" available for 3 easy installments of $96.49? inquiring minds are waiting smile


Inquiring minds are also waiting for you to answer the question I posed to you earlier. whistling
Posted By: 67SATisfaction

Re: Who has paid off their house? - 07/12/19 02:18 PM

By having a steady income, managing a budget to keep debt under control, having the discipline to put money into a mix of retirement, college, or investment accounts, and paying off our mortgage ---> your net worth is on solid ground and should grow.

Paying off your house is a good goal, but the cost of mortgage debt is historically cheap so we don't prioritize it. Does anyone remember mortgage rates in the late 70's? Or credit card interest rates? It was crazy high compared to now, and I remember my parents really struggling.

Originally Posted by AndyF
Originally Posted by SomeCarGuy

That explains the retirement shortfall. Look at any chart of savings amounts by age. People either save nothing, or they invest in their house. A house is a nonliquid investment and is about as non diverse as it gets. Lose a big employer, neighborhood goes to pot, anything like that and you can get hurt. It’s just mind boggling how little people understand about personal finance. Lose tax breaks, lose compounding, but hey I own my house. “I don’t have debt, I’m rich”.


There are some general rules that most people agree with such as pay off high interest debt first and always take the match, but after those general rules it gets more difficult. There isn't a good answer to the question about putting funds towards debt reduction vs. using those funds for additional investments. It is a question of deleverage vs. leverage. There is no answer to that question going forward, only in hindsight.

My personal approach was to fund the retirement accounts first, add to the kids college funds next, and then apply extra funds after that to the house payment. That approach worked for me but it didn't work for others.


Usually "a plan" based on the circumstance will work well for anyone who sticks with it. I think "rich" people do care - they didn't get where they are by not caring. Financial professionals keep their jobs for a reason; they can show results.

Yes, a very important component of anyone's household financial plan is managing debt. Short term is the costliest, and perhaps the hardest habit to kick. Credit card debt will drain cash that is critical for anyone with a goal of building equity.

Our personal approach is largely the same as Andy's... with an added piece that fits our particular situation. Before putting extra cash towards the mortgage, we put some into a few investment account(s) and been doing that since before we even bought our house. The investments have a record of earning more % than the mortgage costs us. Taxation enters into the picture, but our CPA offers good advice to manage it.

- Art


Posted By: 67SATisfaction

Re: Who has paid off their house? - 07/12/19 02:20 PM

Originally Posted by AndyF
I came up with a method a few years back that gave me the benefits of having my house paid off while also keeping the benefits of not having it paid off. That trick worked for me but it probably doesn't apply to most people. It is something I'd recommend to others who have the cash on hand to pay off their mortgage though.


The quickest "benefit" I can think of, of having a mortgage, is the interest write-off... ? So what's the gig? We are listening.. .
Posted By: oldjonny

Re: Who has paid off their house? - 07/12/19 02:26 PM

I paid mine off as well last year. Darn nice to not be dealing with a monthly stroke anymore.

But, I am looking forward to hopefully being able to buy someone else a house or maybe multiples. Looking ahead to 2020 it appears that those of us that actually take that responsibility on should be expected (out of the goodness of our hearts) to pay for those that don't. I'm all for it...of course.
Posted By: mopowers

Re: Who has paid off their house? - 07/12/19 02:44 PM

Seems to me that it isn't as simple as comparing the mortgage interest rate with the return rate of the alternative investments. Wouldn't you have to take the increased home value into account? In other words, the extra money you put into paying down the house is worth more as the home value increases. Is this correct?
Posted By: BSB67

Re: Who has paid off their house? - 07/13/19 02:10 AM

Originally Posted by 67SATisfaction
....... ---> your net worth is on solid ground..........


Net worth, not much more really matters.
Posted By: AndyF

Re: Who has paid off their house? - 07/13/19 04:21 AM

Originally Posted by 67SATisfaction
Originally Posted by AndyF
I came up with a method a few years back that gave me the benefits of having my house paid off while also keeping the benefits of not having it paid off. That trick worked for me but it probably doesn't apply to most people. It is something I'd recommend to others who have the cash on hand to pay off their mortgage though.


The quickest "benefit" I can think of, of having a mortgage, is the interest write-off... ? So what's the gig? We are listening.. .


In my case the interest write off didn't apply so that wasn't a factor. But keeping a stack of cash on hand was a benefit since a stack of cash can be used for lots of things. So if you have enough money to pay off your house it might be worthwhile to keep the cash on hand rather than use it to pay off the mortgage. That way you don't have to run to the bank and get a line of credit if you need some money.

The flip side is that paying off the house provides a measure of security. Especially to some people. Others might not care so much but some people really care a lot. So if you're one of those people who care a lot you can put the cash in a dedicated bank account. Have the mortgage payments pulled from that bank account. If it is a money market account the interest you're paid might be close to the interest you pay on the mortgage. When you do it this way you basically have the house paid for but you have the cash if you really, really need it.

The other benefit of doing this is that you have a steady stream of mortgage payments which will help your credit score. If you pay off the house and don't have any other debt then your credit score will dip a bit.
Posted By: AndyF

Re: Who has paid off their house? - 07/13/19 04:29 AM

Originally Posted by mopowers
Seems to me that it isn't as simple as comparing the mortgage interest rate with the return rate of the alternative investments. Wouldn't you have to take the increased home value into account? In other words, the extra money you put into paying down the house is worth more as the home value increases. Is this correct?


Not really, in fact it is probably the opposite of that. Paying off your house decreases your leverage so any gain in value is at a reduced percentage. If you put $10,000 down on a house that is worth $100,000 and the house goes up in value to $110,00 you just doubled your money. If you pay $100,000 for a house that is worth $100,000 and the value goes up to $110,00 then you made 10%. Obviously doubling your money is better than getting a 10% return but the leverage is brutal on the down side.

If you own the house and the value drops to $90,000 you don't really care since you still own the house. If you put $10,000 down and the value drops to $90,000 you are broke. If the value drops to $80,000 you're underwater.
Posted By: second 70

Re: Who has paid off their house? - 07/15/19 04:11 PM

That only works if you sell the house and the $90,000 was a free loan. Here's a calculator that will show you how much a loan for $90,000 @ 4% for 30 years will really cost. After 5 years you would have paid $25,780.2 in total payments and still owe $81,244 of the 90 you borrowed. So the loan for only 5 years cost ($17,024.2). Total payment $154,683 $64,683 interest.

https://www.amortization-calc.com/mortgage-calculator/
Posted By: 3hundred

Re: Who has paid off their house? - 01/02/20 10:48 PM

Originally Posted by nutso suave
Who has paid off their mortgage?


wave ME! Got the "confirmation of loan payoff" letter today! boogie boogie boogie

I thought I had one more full regular payment and a partial for payoff, apparently I had enough escrow accumulated so they applied it to the mortgage. So I'm all done, be 65 in 5 months.

I hardly have anybody to share the info with anymore so you guys are elected. devil wave

Robert
Posted By: Pacnorthcuda

Re: Who has paid off their house? - 01/02/20 11:01 PM

I’m 60, retired three years ago, and have been debt free for over ten years.
If your debt is low interest...like 2-3 percent, it’s not a real big deal (still not great, but likely not a huge problem, depending on your net worth)

If it’s not low interest, pay if off........unless you are really good at playing the markets.
Posted By: Warhawk

Re: Who has paid off their house? - 01/03/20 02:28 AM

Originally Posted by 3hundred
Originally Posted by nutso suave
Who has paid off their mortgage?


wave ME! Got the "confirmation of loan payoff" letter today! boogie boogie boogie

I thought I had one more full regular payment and a partial for payoff, apparently I had enough escrow accumulated so they applied it to the mortgage. So I'm all done, be 65 in 5 months.

I hardly have anybody to share the info with anymore so you guys are elected. devil wave

Robert



That is awesome Robert, Congrats!
Posted By: SomeCarGuy

Re: Who has paid off their house? - 01/03/20 03:59 AM

This post is still going? Lol

It inspired me to go out and catch the rates within 10 basis points of the lows and lock in a fresh 30 fixed rate.

Glad I did. Wife was frustrated with her job one day. I said just walk off. You can’t do that without a cushion. I’ll take financial security for the win every time. Every time.
Posted By: 62maxwgn

Re: Who has paid off their house? - 01/03/20 04:43 AM

Sold my first for four time what I paid for it,paid this one off the day I bought it !
Posted By: 3hundred

Re: Who has paid off their house? - 01/03/20 11:42 AM

Originally Posted by SomeCarGuy
This post is still going? Lol


Yep, I did it! I just had to celebrate the unexpected surprise when I got home from the first day of work of the new year and found my mortgage had retired early. I didn't even get to sign the last payment, sincerely but no longer yours". wink

Robert
Posted By: 67SATisfaction

Re: Who has paid off their house? - 01/03/20 02:10 PM

Originally Posted by 3hundred
Originally Posted by SomeCarGuy
This post is still going? Lol


Yep, I did it! I just had to celebrate the unexpected surprise when I got home from the first day of work of the new year and found my mortgage had retired early.


That's awesome - Congratulations! thumbs We have 6 years to go on a 15yr fixed rate. It doesn't seem long.
Looking forward to the end of it, and love seeing the Principal drop more rapidly as interest tapers off.
I love Net Worth.
- Art
Posted By: second 70

Re: Who has paid off their house? - 01/03/20 05:11 PM

Originally Posted by 3hundred
Originally Posted by SomeCarGuy
This post is still going? Lol


Yep, I did it! I just had to celebrate the unexpected surprise when I got home from the first day of work of the new year and found my mortgage had retired early. I didn't even get to sign the last payment, sincerely but no longer yours". wink

Robert


Congratulations Robert and welcome to the mortgage free club. Great surprise for the new year.
Posted By: Mastershake340

Re: Who has paid off their house? - 01/03/20 06:25 PM

Coincidentally I just got the letter from the mortgage company a week or so ago that mine is paid off. Finally after 30 years and 8 or 9 months! I did a cash out refinance of my 30 year mortgage in 2008 to a new 15 year mortgage just before the banks cut off doing that sort of thing with things collapsing, to get funds to tear down my 2 car garage and build a 3 car garage, and do a desperately needed kitchen remodeling. I've been paying a little extra every month to try to cut the years down, but about a year ago I ramped up the extra payments to get the loan paid off altogether and I'm glad I'm done with that!
My budget will be easier now, though sadly here in this mis-run state, taxes even on my modest abode are as high as many in other parts of the country pay for their mortgages. no
Posted By: moparx

Re: Who has paid off their house? - 01/03/20 06:59 PM

paid mine off before i "retired" [laugh2], and haven't regretted it one bit !
welcome to the club ! you won't be sorry your house is paid for.
beer
Posted By: tboomer

Re: Who has paid off their house? - 01/03/20 08:19 PM

Mine will be paid off in August...maybe sooner. We have been thinking about building a new modular home but wow! The new basement would cost 40 grand! We may be stuck here... shake_head
Posted By: copchaser

Re: Who has paid off their house? - 01/04/20 06:43 PM

Loan company sold my loan. I called the new owner of the note to ask a few questions. They wouldn't talk to me. So I said ok, went to my bank and transferred the money and paid it off. The new loan company didn't own the note for a week, lol. Great feeling, lock, stock and barrel I own it!
Posted By: Morty426

Re: Who has paid off their house? - 01/05/20 09:56 AM

Originally Posted by copchaser
Loan company sold my loan. I called the new owner of the note to ask a few questions. They wouldn't talk to me. So I said ok, went to my bank and transferred the money and paid it off. The new loan company didn't own the note for a week, lol. Great feeling, lock, stock and barrel I own it!


I like it up
Posted By: klunick

Re: Who has paid off their house? - 01/06/20 03:27 PM

54 and mine has been paid off 2 years now. Took another 1 1/2 years to pay the new garage off. I'll admit my whole perspective on life has changed with not having that debt hanging over my head. We recently finished up redoing the first floor of the house after 22 years. Now it is the house that we wanted it to be and we got rid of the 32 year old furniture and bought nice real wood stuff. The projects(cars) have finally started moving(slowly) but we still have college for 2 to pay for so there is that. Just a great feeling when you know that when you go to work, it is because you are funding what you want.
Posted By: second 70

Re: Who has paid off their house? - 01/06/20 04:44 PM

It's hard to believe but I just realized it's been almost 30 years since I paid of my house and I'm only 62. My depression era parents taught me valuable lessons on saving. I bought the house on a 30 year contract for deed for $60,000 @ 9.75%. put down 20% ($12,000) so loan was $48,000. On a 30 Year loan you pay the interest back first so it only take a few dollars off the loan in the first years so paying as little as an extra $10 a month can shorten the loan by years. The interest on that loan for the 10 years I had cost me over $30,000. I was broke and had roommates, drove a $100 car with holes in the floorboard that always needed oil,ate peanut butter and drank cheap beer but it saved me around $60K and I still live here today.

Sometimes I forget how hard I worked and how much I did without to live so comfortable today.

Mike
Posted By: DAYCLONA

Re: Who has paid off their house? - 01/06/20 05:18 PM

Originally Posted by klunick it does
Just a great feeling when you know that when you go to work, it is because you are funding what you want.



Agreed!, I paid off my 30 yr mortgage 10 years early, I didn't want to ride out the last 10 yrs worrying about the mortgage and the rest of life's other expenses, and it does change your out look and attitude knowing that the pressure is off, I always took on a ton of side work for decades outside my regular full time job just to keep ahead, now it's like "F@3k the side work!", I'm taking care of my priorities, more relaxed and more money at hand... I don't know how some today can handle having a $2000-$3000 a month 30 year mortgage, car payments, living expenses, etc, etc without worrying thru out the life of the loan that it might just go bust at the wrong time
Posted By: cgall

Re: Who has paid off their house? - 01/06/20 09:36 PM

First house was $72K in 1986, sold for $95K in 1990, second was $130K, sold for $175K in 1997, it was fun writing that $100K check to buy my current $350K house. I was on track to pay off the balance by 2021, when I will be 64 and ready to retire. This on two good incomes and raising 3 boys in private schools, two have graduated college. All the while I have been able to bracket race my '72 Duster, usually 10-12 races per year. All my plans hit a landmine in 2016 when my wife of 29 years packed her stuff and is now living with a man 10 years younger than I am. I had to pay her 1/2 of the equity in the house and refinance a new 30 year loan. So I will never own my house, I feel very fortunate to be able to hang on to it though, despite the $600 per month property taxes. I will be 63 this month and am thankful for good health and the ability to continue to work. When I retire, I will have to use retirement funds to pay the mortgage, or sell out and pay cash for a smaller place in a more rural area with lower taxes. I'm not complaining, I have a very blessed life, just offering up another tale of how unexpected changes can change your plans.
Posted By: crackedback

Re: Who has paid off their house? - 01/06/20 10:02 PM

Originally Posted by second 70
On a 30 Year loan you pay the interest back first so it only take a few dollars off the loan in the first years so paying as little as an extra $10 a month can shorten the loan by years.


You pay more in interest at first because the amount owed is higher, not that the interest is front loaded to benefit the lender. The lender wants to repaid on the amount that you owe, The interest decreases as the loan balance is reduced.

If you borrowed 100K at 10% you'd pay about $10,000 in interest the first year, same as on a 30 year loan/mortgage ($9975). Balance after 12 months of payments (99,444) Following year interest $9917. Check out an amortization calculator/schedule.

Yes paying a little extra every month can make a HUGE difference. I used to tell clients, if they were disciplined, to get a 30 year mortgage and pay the 15 year amortization amount. It will take about 15.5 years instead of 15 to pay off from a higher rate, but, it allows some flexibility in case something happens.
Posted By: polarconvert

Re: Who has paid off their house? - 01/07/20 01:02 AM

52yo, have a house with a 2.75% 15yr. I owe 1/4 its worth, 240k. Paid for my 3 children to gain degrees in the state university, None of them have a debt. all three drive cars nicer than mine. I have my old cars and an allowance my wife gives me and I could buy what ever I want to. But I do not care. I could die tomorrow. Its all about setting my kids up. I have the cushion to help them buy houses when the time comes, I rather spend the money on them now. The 3% is a drop in the bucket. The way I see it, YOU have to die broke! otherwise MOdern Medical will suck it up. Wake the [censored] up kids! Thats how the game is played. Help your kids, do not hoard your wealth.
Posted By: klunick

Re: Who has paid off their house? - 01/07/20 03:15 PM

Here is a money saving tip: If you have kids that want to go to college, check into sending them to the local Community College for the first 2 years. Here, it runs about $4600 per year and many of the 4 year universities are set up to accept all the credits. In MD, the cheapest University my oldest wanted to go to was $10500 for tuition and another 20k for the dorm and food plan. Boom, instant savings of 25k for the first year. Once they finish the community college they transfer, find some friends with an apt and split the housing costs. Sorry for the hijack of the thread.
Posted By: second 70

Re: Who has paid off their house? - 01/07/20 04:03 PM

Same advice I always gave take a 30 year loan and try and make the payment of a 15 year loan but you have the safety net if times get hard you can make the lower required payment.

The point I was trying to make using your example of 100 @10% is the payment would be $877.57 a month and after 5 years you would still owe $96,501 after 10 years $90,818. So in 5 years 60 payments you only reduced the loan by $3499 so just increasing your payments a little saves a lot. Total interest on loan $215,925.77
Posted By: Runner2go

Re: Who has paid off their house? - 01/07/20 05:44 PM

Originally Posted by ScottSmith_Harms
Paid mine off in 2003, very glad I did, its not fancy but its comfortable and living modestly has made many other things I've done financially possible. One thing that sucks though, there's still property tax and it is always going up. Mine is about $250.00 a month now.


Haven't paid mine off yet, mainly because I'm down to the last 48months and it's only 3.375% loan... investments earn more than that.

What does suck are the property taxes in PA.... House is only accessed at $175k, and taxes are approaching $5500 per year.
They were just over $4k 11 yrs ago, and the house assessment has never changed... millage just keeps climbing!
Schools suck you dry, & back in 2015 the Mayor made York a sanctuary city, then in '16 & '17 they raised taxes 20% to pay for it.
We are now sitting just over 3.1% of accessed value, being paid every single year to the county, township & school district. rant
Posted By: BloFish

Re: Who has paid off their house? - 01/07/20 06:01 PM

The next question is where to move to avoid these bull$#!¥ taxes thumbs
Posted By: Pacnorthcuda

Re: Who has paid off their house? - 01/07/20 06:27 PM

Originally Posted by BloFish
The next question is where to move to avoid these bull$#!¥ taxes thumbs


Have fun in Cambodia.
Posted By: Mr. Potatohead

Re: Who has paid off their house? - 01/07/20 06:34 PM

Move to no place fly over country, My main house not attached to my farming would be 5x-6x its worth in a metro area. I pay 2.8 sales tax on anything and my property taxes are under $300 a year and thats even with my 75x30 shop on the property.

If your happy doing your own thing, like clean air and nearly zero crime= flyover land with very low population density is the ticket.

If not for my mopar habbit I could live great on 15k a year. Not including health care deductible.

However ive not seen anything come up for sale in years, but I have thought of dividing up some acreage but still market value around here would make it semi pointless.



Originally Posted by BloFish
The next question is where to move to avoid these bull$#!¥ taxes thumbs
Posted By: HoosierTA

Re: Who has paid off their house? - 01/07/20 06:39 PM

Originally Posted by crackedback
Originally Posted by second 70
On a 30 Year loan you pay the interest back first so it only take a few dollars off the loan in the first years so paying as little as an extra $10 a month can shorten the loan by years.


You pay more in interest at first because the amount owed is higher, not that the interest is front loaded to benefit the lender. The lender wants to repaid on the amount that you owe, The interest decreases as the loan balance is reduced.

If you borrowed 100K at 10% you'd pay about $10,000 in interest the first year, same as on a 30 year loan/mortgage ($9975). Balance after 12 months of payments (99,444) Following year interest $9917. Check out an amortization calculator/schedule.

Yes paying a little extra every month can make a HUGE difference. I used to tell clients, if they were disciplined, to get a 30 year mortgage and pay the 15 year amortization amount. It will take about 15.5 years instead of 15 to pay off from a higher rate, but, it allows some flexibility in case something happens.



Right, interest paid is based on the present balance. Paying against principle, even a little bit helps over the life of the loan. Installment loans such as for vehicles are indeed front loaded using the "rule of 78" in which the beginning part of a loan is primarily the first part, until 78/78ths of the owed interest is paid. If a person has a a year remaining on a five year loan on a car, there is little need to pay it off early. Other than it is annoying to still be on your books. I have a 450 dollar balance on a motorcycle. It bugs me to have two more months, but what the heck.
Posted By: Runner2go

Re: Who has paid off their house? - 01/07/20 06:40 PM

Originally Posted by BloFish
The next question is where to move to avoid these bull$#!¥ taxes thumbs

Sad thing is its going to get harder to avoid them, as more and more people leave the High Tax States.
Those people are now invading low tax places like FL, TX & TN, and when enough of them finally show up, they will vote in the same type of idiots that raised the taxes in the States they fled from in the 1st place. Can't fix stupid. It was better for everyone else when they remained rooted in CA & the Northeast.
Posted By: SomeCarGuy

Re: Who has paid off their house? - 01/07/20 07:08 PM

Originally Posted by AndyF
Originally Posted by mopowers
Seems to me that it isn't as simple as comparing the mortgage interest rate with the return rate of the alternative investments. Wouldn't you have to take the increased home value into account? In other words, the extra money you put into paying down the house is worth more as the home value increases. Is this correct?


Not really, in fact it is probably the opposite of that. Paying off your house decreases your leverage so any gain in value is at a reduced percentage. If you put $10,000 down on a house that is worth $100,000 and the house goes up in value to $110,00 you just doubled your money. If you pay $100,000 for a house that is worth $100,000 and the value goes up to $110,00 then you made 10%. Obviously doubling your money is better than getting a 10% return but the leverage is brutal on the down side.

If you own the house and the value drops to $90,000 you don't really care since you still own the house. If you put $10,000 down and the value drops to $90,000 you are broke. If the value drops to $80,000 you're underwater.



This is the “other people’s money” concept used by everyone in real estate. Just applied to your house. Makes sense seeing as most view a house as an investment anyway, proven here by how many are investing in their one house and not a diversified portfolio that will build their net worth.

I don’t care what people do, except when I know it will result in them voting to have me pay for their retirement/healthcare costs do to not saving and investing. Pretty obvious you need to make about 400k per year to load all retirement accounts, plus pay down even an average home. I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.
Posted By: Mr. Potatohead

Re: Who has paid off their house? - 01/07/20 07:42 PM

Alot of good/funny/crazy replies on this deal.

Clearly we all do what we feel is best for us within a set of certain parameters, one of the last posts is funny to me as they are worried about paying for others heathcare, ect.....

Get real, WE ALL TAKE UP OTHERS SLACK ONE WAY OR ANOTHER. Hell I pay a phone bill or power bill and there is always a small charge like 25 cents for the low income people fund, here again we all take up others slack, its just how it is. My vehicle reg. has a small fee taking up slack for others or things that dont apply to me, but I gots to pay it.

The most funny thing is, some think and some do have it figured out well but at the end of the day who is winning? Not a single one of us, some may feel good but the house (gov/banks.) holds all the cards.

For me I read this and well, just read it, no need to figure out whos doing the wrong thing, im actually only concerned about the property I own within a certain set of metal steaks on my property line.

Good luck and good bickering guys.
Posted By: not_a_charger

Re: Who has paid off their house? - 01/07/20 07:46 PM

Quote
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.


I can't speak for anyone here, so I don't know if the first part of your statement is accurate or not. I do agree that my experience is similar to what you suggest. Many (not all) of the people I know who intensely focused on being debt free were/are not especially good savers, especially with regard to retirement. I've been called names, laughed at, and criticized for not paying off my house, typically by people who don't understand the concept that investments earning more than the 3.5% I'm paying on my mortgage are more valuable than paying off my mortgage. That's fine by me. I'm laughing all the way to the bank. I have a very comfortable amount of retirement savings already at age 48. I will be able to pay for my kids' college educations in full. I have no debt other than my mortgage. I use credit cards for everything possible, and enjoy the nice cash back bonuses I get, all while paying $0 in credit card interest. My credit score is 828, so if I did want to borrow, banks will be falling all over themselves to loan me money at a low interest rate.

Bravo to anyone who has paid off their house, or paid cash for their house, and done so while still being able to save for retirement, etc...that's no easy feat. Anyone who is financially responsible, whether they use cash only, or use credit to their advantage, whether they pay off their house, or not, is OK in my book.
Posted By: second 70

Re: Who has paid off their house? - 01/07/20 07:48 PM

I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore. [/quote]

Retired at 55 with a well funded bank account I couldn't disagree with your guess more. Most people who saved enough to pay off their homes are very good savers and invest in themselves instead of making payments to a bank.
Posted By: 3hundred

Re: Who has paid off their house? - 01/07/20 08:13 PM

Originally Posted by HoosierTA
Originally Posted by crackedback
Originally Posted by second 70
On a 30 Year loan you pay the interest back first so it only take a few dollars off the loan in the first years so paying as little as an extra $10 a month can shorten the loan by years.


You pay more in interest at first because the amount owed is higher, not that the interest is front loaded to benefit the lender. The lender wants to repaid on the amount that you owe, The interest decreases as the loan balance is reduced.

If you borrowed 100K at 10% you'd pay about $10,000 in interest the first year, same as on a 30 year loan/mortgage ($9975). Balance after 12 months of payments (99,444) Following year interest $9917. Check out an amortization calculator/schedule.

Yes paying a little extra every month can make a HUGE difference. I used to tell clients, if they were disciplined, to get a 30 year mortgage and pay the 15 year amortization amount. It will take about 15.5 years instead of 15 to pay off from a higher rate, but, it allows some flexibility in case something happens.



Right, interest paid is based on the present balance. Paying against principle, even a little bit helps over the life of the loan. Installment loans such as for vehicles are indeed front loaded using the "rule of 78" in which the beginning part of a loan is primarily the first part, until 78/78ths of the owed interest is paid. If a person has a a year remaining on a five year loan on a car, there is little need to pay it off early. Other than it is annoying to still be on your books. I have a 450 dollar balance on a motorcycle. It bugs me to have two more months, but what the heck.


When I paid extra on the principal my thought was always, that's money they can't charge interest on anymore.

To see how much interest you're paying monthly, multiply the principal by the interest rate, ex. 100,000x0.4375 and divide by 12 = $364.58
Posted By: John Brown

Re: Who has paid off their house? - 01/07/20 08:26 PM

My home loan was at 10.375 interest. That was a huge incentive to pay it off as soon as possible. Paid off a 15 year loan in 7, mainly due to paying whatever I could afford when it was time to make the next monthly payment.
Posted By: Dcuda69

Re: Who has paid off their house? - 01/08/20 12:30 AM

Originally Posted by second 70
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.


Retired at 55 with a well funded bank account I couldn't disagree with your guess more. Most people who saved enough to pay off their homes are very good savers and invest in themselves instead of making payments to a bank. [/quote]

I agree. Wife and I are 58...while we're not retired yet, we have certainly planned. Our house has been paid off for many years(2000 sq ft,4 car attached on 1 acre) We have a 4 family(small mortgage easily covered by rent income) I'm 50% owner of a vacation lake property up north(no mortgage,going on the market in spring)Kids are done with college(both have masters degrees with minimal debt) We have a decent 401k, a couple smaller savings accounts and I'll be 25 yrs into my pension when I retire in 4 years. Our healthcare will be covered until Medicare kicks in and I have a 403b account to cover supplemental coverage for many years after that.

We have lived our lives very conservatively in order to be debt free and not rely on "freebies" when we retire! It's not hard..just requires common sense.
Posted By: BloFish

Re: Who has paid off their house? - 01/08/20 12:31 AM

My only debt is my house, 3.125 % for the next 8 years. I pay extra to the principal every month, so it could be less than eight years. I don’t see the benefit in paying it off in full. My money is busy doing other things.
But congrats to those that have done so.
Posted By: BloFish

Re: Who has paid off their house? - 01/08/20 12:35 AM

Originally Posted by Pacnorthcuda
Originally Posted by BloFish
The next question is where to move to avoid these bull$#!¥ taxes thumbs


Have fun in Cambodia.


https://youtu.be/6eSnwPzNnJ4
Posted By: goldduster318

Re: Who has paid off their house? - 01/08/20 01:00 AM

Originally Posted by not_a_charger
Quote
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.


I can't speak for anyone here, so I don't know if the first part of your statement is accurate or not. I do agree that my experience is similar to what you suggest. Many (not all) of the people I know who intensely focused on being debt free were/are not especially good savers, especially with regard to retirement. I've been called names, laughed at, and criticized for not paying off my house, typically by people who don't understand the concept that investments earning more than the 3.5% I'm paying on my mortgage are more valuable than paying off my mortgage. That's fine by me. I'm laughing all the way to the bank. I have a very comfortable amount of retirement savings already at age 48. I will be able to pay for my kids' college educations in full. I have no debt other than my mortgage. I use credit cards for everything possible, and enjoy the nice cash back bonuses I get, all while paying $0 in credit card interest. My credit score is 828, so if I did want to borrow, banks will be falling all over themselves to loan me money at a low interest rate.

Bravo to anyone who has paid off their house, or paid cash for their house, and done so while still being able to save for retirement, etc...that's no easy feat. Anyone who is financially responsible, whether they use cash only, or use credit to their advantage, whether they pay off their house, or not, is OK in my book.


I would say in general that's a blanket statement. My parents and my dad's two brothers haven't had anything on a loan since at least 1987, they all were able to retire early and basically live on investment income very comfortably. They have no chance at all of spending all their retirement savings. Don't worry about us needing your help.

You should be worried about the guy who's mortgaged up to wazoo and is one paycheck loss away from an unrecoverable death spiral which drives all our property values down and crashes consumer spending, so the story of the 2008 crisis. Then the bottom falls out of your investments too. If you time it wrong in a situation like that, it's a real double whammy. The mortgaged to wazoo people are the people that are typically horrible at saving. You can be in the middle and do what you are doing, that works if you can consistently make that money and do better post paying the taxes for the capitol gains.

I paid my first house off at 26, and the second one off at 31 and I'm 33, turning 34 this year now. If your goal is to be debt free and invest like my family all did, you probably need to have a good career (no need to make 400k unless you live on the coasts apparently), and not do a lot of the things that people tend to do (buy new cars before they are needed, go out to eat all the time, spend huge money on smokes and alcohol, lavish vacations, etc), at least until you've gotten to a good place if not paid your debt off. Stuff like new cars and electronics depreciate at an amazing rate. Lots of people my age go on 2 international vacations a year and lease new BMWs then complain about their debt and cash flow...Gotta have some fun but people like that don't even put any value into saving or investing.

In my case I doubled my money on my first house in 6 years, so the investment was still decent. Paying it off didn't take too much really, the market was depressed in Detroit metro and the house was foreclosed. The second house was undervalued and I was able to get a better deal on it because the owners had just finished building a new house - and I ended up not owing much so it was easy to pay off. I never had enough interest to write off on my taxes before the change so it was easy to just throw some extra money that way each month.
Posted By: SomeCarGuy

Re: Who has paid off their house? - 01/08/20 02:07 AM

So you guys boasting about all the “money in the bank” are going to lie to us all and claim you funded all possible retirement accounts to the tune of about 30k, more with a spouse with a 401k, plus paid off a home way early? That requires making a top ten percent of society income. I’m sure some on her make that much. I’m sure one might have pulled it off. I’m saying that didn’t happen for all these guys bragging like they did something special paying off a house.

That doesn’t even get into the lowered net worth by paying off a house with a low rate versus investing in a taxable account.
Posted By: SomeCarGuy

Re: Who has paid off their house? - 01/08/20 02:11 AM

Originally Posted by Mr. Potatohead
Alot of good/funny/crazy replies on this deal.

Clearly we all do what we feel is best for us within a set of certain parameters, one of the last posts is funny to me as they are worried about paying for others heathcare, ect.....

Get real, WE ALL TAKE UP OTHERS SLACK ONE WAY OR ANOTHER. Hell I pay a phone bill or power bill and there is always a small charge like 25 cents for the low income people fund, here again we all take up others slack, its just how it is. My vehicle reg. has a small fee taking up slack for others or things that dont apply to me, but I gots to pay it.

The most funny thing is, some think and some do have it figured out well but at the end of the day who is winning? Not a single one of us, some may feel good but the house (gov/banks.) holds all the cards.

For me I read this and well, just read it, no need to figure out whos doing the wrong thing, im actually only concerned about the property I own within a certain set of metal steaks on my property line.

Good luck and good bickering guys.


A retired couple can expect to spend 285k on healthcare alone in retirement. Who do you think will foot that bill? It won’t be the guys that didn’t save. It won’t be the guys that paid off their house early. Median boomer only has about 175k saved. That’s what is insane about this. Partly do to the misinformation being spread about being debt free as a panacea for all financial problems.
Posted By: SomeCarGuy

Re: Who has paid off their house? - 01/08/20 02:15 AM

And it’s not an argument.

Here are the numbers showing what a 4% mortgage “investment” would get you over ten years in savings, versus the loss of net worth by not buying an index fund. 8% is long run average, I’ve seen people say it’s been more like 10 for last 30 years or so.

If you invested $500 a month for 10 years and earned a 4% rate of return, you’d have $73,625 today.
If you invested $500 a month for 10 years and earned a 6% rate of return, you’d have $81,940 today.
If you invested $500 a month for 10 years and earned an 8% rate of return, you’d have $91,473 today.
Posted By: Sniper

Re: Who has paid off their house? - 01/08/20 02:18 AM

Originally Posted by SomeCarGuy
That requires making a top ten percent of society income.


that is not a hard target to hit. It starts at $118k a year.
Posted By: AndyF

Re: Who has paid off their house? - 01/08/20 02:31 AM

Originally Posted by SomeCarGuy
So you guys boasting about all the “money in the bank” are going to lie to us all and claim you funded all possible retirement accounts to the tune of about 30k, more with a spouse with a 401k, plus paid off a home way early? That requires making a top ten percent of society income. I’m sure some on her make that much. I’m sure one might have pulled it off. I’m saying that didn’t happen for all these guys bragging like they did something special paying off a house.

That doesn’t even get into the lowered net worth by paying off a house with a low rate versus investing in a taxable account.


Actually it isn't that hard to pay off a house and max out the retirement accounts on a worker bee salary. I know machine shop guys who have done that. They work some overtime every week but they don't get stock options or bonuses. The trick is to keep the expenses down.

I worked with guys making $250K a year who didn't have any savings. They went to Hawaii for Christmas, Palm Springs for spring break, Italy for the summer, etc. Their kids went to private school and had horses. They have a big power boat for summer time and belong to the country club. At the end of the day they had zero savings.
Posted By: hooziewhatsit

Re: Who has paid off their house? - 01/08/20 03:04 AM

Originally Posted by Sniper
Originally Posted by SomeCarGuy
That requires making a top ten percent of society income.


that is not a hard target to hit. It starts at $118k a year.


To be fair, if it was easy to get that kind of income, that would be the median, not the current $60k/year household income.


Originally Posted by AndyF
Originally Posted by SomeCarGuy
So you guys boasting about all the “money in the bank” are going to lie to us all and claim you funded all possible retirement accounts to the tune of about 30k, more with a spouse with a 401k, plus paid off a home way early? That requires making a top ten percent of society income. I’m sure some on her make that much. I’m sure one might have pulled it off. I’m saying that didn’t happen for all these guys bragging like they did something special paying off a house.

That doesn’t even get into the lowered net worth by paying off a house with a low rate versus investing in a taxable account.


Actually it isn't that hard to pay off a house and max out the retirement accounts on a worker bee salary. I know machine shop guys who have done that. They work some overtime every week but they don't get stock options or bonuses. The trick is to keep the expenses down.

I worked with guys making $250K a year who didn't have any savings. They went to Hawaii for Christmas, Palm Springs for spring break, Italy for the summer, etc. Their kids went to private school and had horses. They have a big power boat for summer time and belong to the country club. At the end of the day they had zero savings.


There are two separate problems that I see conflated all the time. A household that makes 30k a year and has no savings is equated to be the same as a household that makes 250k and has no savings. The outcome may be the same, but the cause is entirely different.
The first may indeed have a money management/spending problem, but their first problem is a lack of money. The second household does not have a money problem; they have a spending/management problem.

For someone (not you, Andy/SCC), to say the first household can be like the second just by managing their money better is disingenuous.

And I can confirm that horses are an absolute money sink laugh2
Posted By: DAYCLONA

Re: Who has paid off their house? - 01/08/20 06:19 AM

Originally Posted by SomeCarGuy
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.



You might be correct?...but some of us aren't expecting "freebies" when we retire, I learned extremely early in life to rely on no one other than oneself to prosper... I provided for my family, they never went without, I always put myself last, yet I managed to pay off my 30 yr mortgage 10 yrs early, provide for my wife to go back to school to earn a degree, as well as my daughter, payed off all student loans, my own, wife's and daughter's, as well as invest in company/corporate stock, and maintain a constant maximum contribution to my 401K, carry no debt/loans and live by the "cash only" credo .... I expect very little "freebies" from social security

Mike
Posted By: second 70

Re: Who has paid off their house? - 01/08/20 03:22 PM

Originally Posted by SomeCarGuy
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.



I've been retired for 7 years and pay $35K a year in federal taxes so to me I believe I'm the one paying for others freebies. And yes the high tax bill is because of fully funding a retirement account and investments I made due to not having a house payment.

And no I haven't taken any SS either.

But you know I have co-workers that made the same amount of money I did but had to keep getting new cars,bigger houses, latest everything, need it today pay for it tomorrow and are broke and had to go back to work.

I have a neighbor that complains he's always broke and to raise taxes on the rich. Well he is single and his income is in the top 25% so the problem isn't the income it's that he spends it all.

And I agree there isn't much of a benefit to pay off a low interest loan with only few years left. But if it's a high interest loan that's a different story.



Mike
Posted By: klunick

Re: Who has paid off their house? - 01/08/20 03:44 PM

Originally Posted by DAYCLONA
Originally Posted by SomeCarGuy
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.



You might be correct?...but some of us aren't expecting "freebies" when we retire, I learned extremely early in life to rely on no one other than oneself to prosper... I provided for my family, they never went without, I always put myself last, yet I managed to pay off my 30 yr mortgage 10 yrs early, provide for my wife to go back to school to earn a degree, as well as my daughter, payed off all student loans, my own, wife's and daughter's, as well as invest in company/corporate stock, and maintain a constant maximum contribution to my 401K, carry no debt/loans and live by the "cash only" credo .... I expect very little "freebies" from social security

Mike


Dayclona is spot on. Yes, he and I probably live in an area that is more expensive but the pay is also better. House was paid of at 52 after we converted the 30 year mortgage to a 15 and added additional money against the principle every month. My DD is a base 09 Corolla no options. Why? It won't break, gets 32-40mpg and will last forever. Before that I drove my wife's 92 Paseo. We didn't live large but chose to pay off things early. No fancy vacations, cruises, timeshares, etc. Vacation for us was a long weekend to Hershey Park. Married 22 years and have been to Gatlinburg perhaps 3 times. 15% goes into the 401k. My point is it is what you do with the money that counts. I could have finished off the cars long ago but they are a "Luxury". In the same neighborhood, we have folks that make about the same as the wife and I do. they have larger nicer homes, boats, ATV, SUV, motorhomes, and all the newest gadgets. They are all living for today and trying to keep up with the Jones. Most also don't have their house even close to being paid for or have a clue how they will ever retire. That is what is great about America. We are all free to make these decisions, life the life we want, but also to live with the consequences of our decisions.
Posted By: Transman

Re: Who has paid off their house? - 01/08/20 03:57 PM

There is a lot of comfort in knowing your house is paid off and if it hits the fan, you have s place to live instead of in a tent on a sidewalk.
Even a better feeling knowing that if something happens to you (assuming everyone reading this is the primary breadwinner/maintenance guy) that the wife, kids/grandkids have a place to retreat to if it hits the fan.

My opinion only but for those of us with Depression Era parents - we heard the stories and learned how to try and prevent them from affecting our families firsthand.
Posted By: moparx

Re: Who has paid off their house? - 01/08/20 04:38 PM

Originally Posted by Transman
My opinion only but for those of us with Depression Era parents - we heard the stories and learned how to try and prevent them from affecting our families firsthand.


i grew up around my grand parents, plus my aunts and uncles, who went through the depression.
i therefore throw nothing away if it can be put to another use [that can be a whole 'nother problem in itself ! biggrin], drive a 99 caravan [used as a truck, with cheaper tags] fix everything i can myself, and over the years have taught myself to rely on my skills and a few very close friends to be able to survive the times at hand.
if i want something, i save for it.
i never made much money my entire career as a CNC machinist, but it was a good salary for this area. i saved as much as i could while paying all my bills and taxes on time.
being retired for some time now, i take advantage of the "homestead exclusion" on my property and school taxes this area offers, and plan on using up my savings by the time i croak.
it is what it is, and i don't complain because i have health issues.

however, some game the system [ALL income groups !] and that is NOT right !
others NEED to go through a depression and learn some valuable life lessons.
beer
Posted By: chargervert

Re: Who has paid off their house? - 01/08/20 07:50 PM

Who can afford to build Mopars, and pay a mortgage too?
Posted By: 4406bbl

Re: Who has paid off their house? - 01/08/20 08:55 PM

Originally Posted by DAYCLONA
Originally Posted by SomeCarGuy
I’ll guess most on here posting they paid off early didn’t manage to build their accounts while paying off the house. Loss of wealth and will expect freebies when they can’t work anymore.



You might be correct?...but some of us aren't expecting "freebies" when we retire, I learned extremely early in life to rely on no one other than oneself to prosper... I provided for my family, they never went without, I always put myself last, yet I managed to pay off my 30 yr mortgage 10 yrs early, provide for my wife to go back to school to earn a degree, as well as my daughter, payed off all student loans, my own, wife's and daughter's, as well as invest in company/corporate stock, and maintain a constant maximum contribution to my 401K, carry no debt/loans and live by the "cash only" credo .... I expect very little "freebies" from social security

Mike


We could be brothers....always put myself last to a fault, 4 kids went to college debt free, supported my mother after my dad died, worked whatever hours it takes. It really pisses me off when someone calls whatever social security or medicare I get, if there is any left, a "freebie", I have paid more than a million in taxes and health insurance so I do not see it as a "freebie". I paid cash for my business, cash for my last house, cash for my new cars, fully fund iras, bought stock when it was at 6666, made sure my girls had 100k before they left home, never borrow ever. My great grandfather was a european war immigrant, died when I was nine. The one thing I will never forget is he said never rent, and never borrow against your property, there are better ways. Owned property gives you options, bank owned limits options. Cash only for us or do without. I never planned on soc security to support me, but plan on taking it if any is left, it will be my vacation money after paying in for 50 years good lord willing.
Posted By: skicker

Re: Who has paid off their house? - 01/08/20 09:23 PM

Originally Posted by chargervert
Who can afford to build Mopars, and pay a mortgage too?


There's a lot of ways to do both and much more...I always liked the "checkbook" guys that own cars...you know... the one's that pay someone else for everything... up

Used to vacation for 4 days a year at Carlisle...I got paid for that vacation time twice...

I gotta admit my house isn't paid off yet...The refi from 30 years down to 15 a bunch of years back was a wise move but made everything a little tighter...

Maybe 4 years or so left...Probably could have been but the extra monies now go towards 401K...finishing my garage and some remodeling...

I do everything I can myself and usually can afford to buy better grade materials because of it...

Everyone follows their own path...I have friends that make a lot more money and are always broke...hopefully they're not headed to a dead end... shruggy
Posted By: Doc Fiberglass

Re: Who has paid off their house? - 01/08/20 10:08 PM

Takea diff PATH Sonny !

QUIT spending money... my GF and I need a extensive Caravel Cruise !
Posted By: HotRodDave

Re: Who has paid off their house? - 01/08/20 10:20 PM

We lived in a crappy 800sqf 1973 trailer house for 5 years with eventually 6 kids in a 2bedroom so we could pay cash. Absolutely no regrets and yes I am aware I could have made money on that money butt there is nothing like the peace of mind that comes from knowing when the economy tanks again wells faggo or bank of evil (bank of america) or any other satanic institution won't come asking for the keys when I can't make a payment. Now the house is paid off I can invest in other stuff with much less worry. In Montana we can homestead our house (makes it very hard for someone to ever take our primary residence) if it's paid off.
Posted By: skicker

Re: Who has paid off their house? - 01/08/20 10:26 PM

Originally Posted by Doc Fiberglass
Takea diff PATH Sonny !

QUIT spending money... my GF and I need a extensive Caravel Cruise !


I'm good with that as long as your good with being bait... up

Now get off your a$$ and start making me some 65 fiberglass parts...for free of course... devil
Posted By: Doc Fiberglass

Re: Who has paid off their house? - 01/08/20 11:40 PM

Originally Posted by skicker
Originally Posted by Doc Fiberglass
Takea diff PATH Sonny !

QUIT spending money... my GF and I need a extensive Caravel Cruise !


I'm good with that as long as your good with being bait... up

Now get off your a$$ and start making me some 65 fiberglass parts...for free of course... devil


Bait ?

65 ? ... could be a very costly project !
Posted By: 71TA

Re: Who has paid off their house? - 01/09/20 07:12 PM

Wifey just mailed in a $60,000 check. She had been sneaking double payments for a couple years and I mailed a $15,000 check a couple months back. Only $25,000 left. We wanted to get the house paid off before the next downturn (we all know its coming - nope, it's not gonna be different this time ) Just hope I can save enough to make one final buy when there's blood in the streets and people think the world is coming to an end (it's not). Bought my $250k industrial building for $100k last time after a big spender, financial know it all, family friend(?) lost it and it sat vacant for 3 years. Go figure. Wouldnt mind getting a $650K industrial building for $350k that I couldn't afford last time. Nice ranch homes sold in our neighborhood for $125k. Now about $400k. Wouldnt mind grabbing one of those next time too. Good luck to us all. Need to sell our house and maybe buy a cheap condo this year so we have a pile of cash to work with. At 57 I may not have the opportunity or drive/strength to do it again in another 10-20 years smile
Posted By: nutso suave

Re: Who has paid off their house? - 01/16/20 06:44 AM

3hundred- congrats!
Posted By: ZIPPY

Re: Who has paid off their house? - 01/16/20 07:24 PM

wave

My first mortgage, and quite possibly my last!
Posted By: calmopar

Re: Who has paid off their house? - 01/17/20 12:47 AM

Paid off 1st house because I was single and frugal. Sold a business and bought house #2 with that money. Sold those two and bought house #3 where I am now. Locked that up legally and got married and divorced and still have it. Got ripped off as a commercial tenant and decided to buy a tiny place in a crummy part of a crummier town 24 years ago. Both the town and that part of the town have improved so it's paying some bills for me now. I learned from my dad - spend modestly, save, and buy real estate with low risk. It takes patience and I went on fewer trips and had fewer toys but it's the long game to play especially if you want to try and set your kids up a little.
Posted By: ArcticCuda

Re: Who has paid off their house? - 01/17/20 06:55 AM

Huge property taxes over there! I am paying 190 usd / YEAR. Not fancy house, but 3 bedrooms, living room, kitchen, sauna, outside balcony and separate heated garage for 2 cars.

Mortage interest rates are now between 0-1 %.

Location, Finland, Europe.
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