You know you are old....

[The emperor has no clothes]

When you pay off your home mortgage. That’s just what we did today. Kind of a strange feeling. First time in my life, except for selling them.

[Serk]

Congratulations!

Kinda funny story - my parents were 32 or 33 years into their 35 year VA loan when they got a letter from the company that held the loan saying basically it was costing them more to process what was left of the mortgage at that point than they were making, you're free and clear, the house is yours.

The sad part was that after property taxes and insurance, the actual amount of money they were paying every month barely dropped.....

[The emperor has no clothes]

Thanks  we originally had a 30 year loan. After a year we switched to a 15 year loan at no charge. Sometimes things just work out. At the time it seemed not to be a great move, today I feel brilliant 

[Beardo]

Congrats.

...that frees up some $$ for that new Wing you were contemplating. 

[J.Mencalice]

Thanks  we originally had a 30 year loan. After a year we switched to a 15 year loan at no charge. Sometimes things just work out. At the time it seemed not to be a great move, today I feel brilliant 

My wife and I did the same thing that you folks did.  Switched over to the 15 year plan and doubled up on paying down the principal by pulling that plow day and night, literally.  Haven't had a mortgage for about fourteen years now.  Great feeling, isn't it?  Congrats to you and your missus on a piece of freedom that money does buy.
Every once in a while I look out on our old place from up at the head of our land and just grin that I'm beholden to no man or +%$#@ banker for what I'm standing on.  Then I hug my wife for her sacrifice in getting us here.
Welcome to that blue collar slice of life. Your parents would be proud.

[bill-jr]

Just turned 38 the 17th plan on having mine payed on my 40th Bday . . .
BTW congrats on paying yours off . . . .

[Bighead]

Congrats Rob I hope to have mine paid in two more years. That is all I owe. So could do it quicker.

[Jess from VA]

Congrats.  It is a good feeling.  

I needed 70K to do it, but had to take almost 30K more to pay State and Fed taxes on the previously untaxed 401K money.  And I had to pay income taxes on both the principle (70K) AND the extra tax money (30K).  

Vaseline helps, but it's still sodomy.  

PS, don't forget to get your official release of lien from the Mortgage people, and with the County recorder of deeds too.  You may never move and sell, but you never know.

[The emperor has no clothes]

Congrats.

...that frees up some $$ for that new Wing you were contemplating. 

unfortunately we went right into another loan for some property in AK. At least we only have a year on that.

[98valk]

should never pay off a mortgage.  house owner takes all of the risk, has all that money locked up and not making money for u. carrying a mortgage the bank takes the risk.  major housing market crash your money is gone.

If not familiar with Ric Edelman he is the top rated financial adviser in the nation yr after yr.

https://www.edelmanfinancial.com/education-center/articles/11-great-reasons-to-carry-a-big-long-mortgage
 
https://www.edelmanfinancial.com/education-center/articles/yes-even-under-the-new-tax-law-you-should-still-carry-a-big-long-mortgage

Reason #11: You’ll never get rid of your monthly payment, no matter how hard you try.

You want to eliminate your mortgage so that you don’t have to make any payments in retirement. That’s too bad, because even if you somehow eliminate your mortgage, you won’t eliminate your payments.

Sure, paying off your mortgage means you no longer make any principal or interest payments. But mortgages are known as PITI, and we’ve only addressed the P and the I. Let’s not forget about the T and the other I — or the M and the R.

I’m talking about taxes and insurance. Even if you manage to pay off the loan, you’ll still have to pay property taxes and homeowner’s insurance. Thus, your goal of “getting rid of the mortgage payment” is impossible! Even if you eliminate the mortgage, you’ll still have tax and insurance payments.

And as long as you own your house, you’ll have Maintenance and Repairs to contend with as well. So don’t bother trying to make your mortgage go away. Instead, create wealth so that you can comfortably afford the cost of living in and owning your home.

[Beardo]

Congrats.

...that frees up some $$ for that new Wing you were contemplating. 

unfortunately we went right into another loan for some property in AK. At least we only have a year on that.

Well that sounds pretty good too!  Congrats again!

[Bighead]

should never pay off a mortgage.  house owner takes all of the risk, has all that money locked up and not making money for u. carrying a mortgage the bank takes the risk.  major housing market crash your money is gone.

If not familiar with Ric Edelman he is the top rated financial adviser in the nation yr after yr.

https://www.edelmanfinancial.com/education-center/articles/11-great-reasons-to-carry-a-big-long-mortgage
 
https://www.edelmanfinancial.com/education-center/articles/yes-even-under-the-new-tax-law-you-should-still-carry-a-big-long-mortgage

Reason #11: You’ll never get rid of your monthly payment, no matter how hard you try.

You want to eliminate your mortgage so that you don’t have to make any payments in retirement. That’s too bad, because even if you somehow eliminate your mortgage, you won’t eliminate your payments.

Sure, paying off your mortgage means you no longer make any principal or interest payments. But mortgages are known as PITI, and we’ve only addressed the P and the I. Let’s not forget about the T and the other I — or the M and the R.

I’m talking about taxes and insurance. Even if you manage to pay off the loan, you’ll still have to pay property taxes and homeowner’s insurance. Thus, your goal of “getting rid of the mortgage payment” is impossible! Even if you eliminate the mortgage, you’ll still have tax and insurance payments.

And as long as you own your house, you’ll have Maintenance and Repairs to contend with as well. So don’t bother trying to make your mortgage go away. Instead, create wealth so that you can comfortably afford the cost of living in and owning your home.

Sounds good but as long as you owe $1 on it the bank still owns it.

[98valk]

should never pay off a mortgage.  house owner takes all of the risk, has all that money locked up and not making money for u. carrying a mortgage the bank takes the risk.  major housing market crash your money is gone.

If not familiar with Ric Edelman he is the top rated financial adviser in the nation yr after yr.

https://www.edelmanfinancial.com/education-center/articles/11-great-reasons-to-carry-a-big-long-mortgage
 
https://www.edelmanfinancial.com/education-center/articles/yes-even-under-the-new-tax-law-you-should-still-carry-a-big-long-mortgage

Reason #11: You’ll never get rid of your monthly payment, no matter how hard you try.

You want to eliminate your mortgage so that you don’t have to make any payments in retirement. That’s too bad, because even if you somehow eliminate your mortgage, you won’t eliminate your payments.

Sure, paying off your mortgage means you no longer make any principal or interest payments. But mortgages are known as PITI, and we’ve only addressed the P and the I. Let’s not forget about the T and the other I — or the M and the R.

I’m talking about taxes and insurance. Even if you manage to pay off the loan, you’ll still have to pay property taxes and homeowner’s insurance. Thus, your goal of “getting rid of the mortgage payment” is impossible! Even if you eliminate the mortgage, you’ll still have tax and insurance payments.

And as long as you own your house, you’ll have Maintenance and Repairs to contend with as well. So don’t bother trying to make your mortgage go away. Instead, create wealth so that you can comfortably afford the cost of living in and owning your home.

Sounds good but as long as you owe $1 on it the bank still owns it.

a house, real estate is a liability. a rental is not if there is positive cash flow otherwise it is a liability.
  so the money not being put into a residence is in the bank collecting interest or stocks making money. 
its good the bank owns it. they take risk. they can't call anybody on the mortgage loan like they did during the depression, that was outlawed back then.

[RainMaker]

When you pay off your home mortgage. That’s just what we did today. Kind of a strange feeling. First time in my life, except for selling them.

Congratulations on your retirement of the mortgage. It's a great thing to do.  My wife and I paid off ours 3 years ago.

It feels good, doesn't it?

[DDT (12)]

Congrats, Rob & Brenda! Do things the way they make the most sense to you... At the end of the day, YOU are the only ones ultimately responsible for the risk for you decisions. What makes perfect sense in 'ordinary' circumstances may not be the best option when other factors are considered. You have a dream and a plan, that only you know the particulars of; so, I say, "Go for it!"

DDT

[The emperor has no clothes]

When you pay off your home mortgage. That’s just what we did today. Kind of a strange feeling. First time in my life, except for selling them.

Congratulations on your retirement of the mortgage. It's a great thing to do.  My wife and I paid off ours 3 years ago.

It feels good, doesn't it?

Congrats, Rob & Brenda! Do things the way they make the most sense to you... At the end of the day, YOU are the only ones ultimately responsible for the risk for you decisions. What makes perfect sense in 'ordinary' circumstances may not be the best option when other factors are considered. You have a dream and a plan, that only you know the particulars of; so, I say, "Go for it!"

DDT

Thanks guys  It does feel good. Brenda is very happy and proud. I think it hasn’t completely sunk in for me, seems surreal like it’s happening to someone else . 

[The emperor has no clothes]

Congrats.

...that frees up some $$ for that new Wing you were contemplating. 

unfortunately we went right into another loan for some property in AK. At least we only have a year on that.

Well that sounds pretty good too!  Congrats again!

Thanks, Maybe in a year or so after we’ve paid off the loan on the property I’ll indulge myself with that red DCT Wing. I sure did like the looks and reports of my friend Prescott John in Roanoke. Glad you are enjoying yours 

[Tx Bohemian]

Ok, someone needs to explain this to me:
Or is this a joke?

***Disclaimer***
Although it says "quote= 98valk" these statements are from Ric Edelman.

should never pay off a mortgage.  house owner takes all of the risk, has all that money locked up and not making money for u. carrying a mortgage the bank takes the risk.  major housing market crash your money is gone.

If not familiar with Ric Edelman he is the top rated financial adviser in the nation yr after yr.

Reason #11: You’ll never get rid of your monthly payment, no matter how hard you try.

You want to eliminate your mortgage so that you don’t have to make any payments in retirement. That’s too bad, because even if you somehow eliminate your mortgage, you won’t eliminate your payments.

But your monthly payments will be EXCESSIVELY lower! Leaving more money in your pocket!
Probably leaving enough to pay off other bills (CCs, car payments, new bikes, etc...) way sooner!
Or creating wealth (see below)

Sure, paying off your mortgage means you no longer make any principal or interest payments. But mortgages are known as PITI, and we’ve only addressed the P and the I. Let’s not forget about the T and the other I — or the M and the R.

Is there house loans out there that cover the "M and R"?
Which I take it means "maintenance and repairs".
Every house I owned (or was buying) I did my own M&R or I paid to have it done!
And STILL had to make the monthly mortgage payments!!

I’m talking about taxes and insurance. Even if you manage to pay off the loan, you’ll still have to pay property taxes and homeowner’s insurance.

DUH!!!

Thus, your goal of “getting rid of the mortgage payment” is impossible! Even if you eliminate the mortgage, you’ll still have tax and insurance payments.

See my first statement of "way lower payments"!

And as long as you own your house, you’ll have Maintenance and Repairs to contend with as well. So don’t bother trying to make your mortgage go away.

Again, still making M&Rs when making a mortgage payment also!

Instead, create wealth so that you can comfortably afford the cost of living in and owning your home.

With the mortgage paid off "creating wealth" should be a lot easier IMO!


Obviously, I'm seeing this in a way different light, so hence the "someone explain" comment.

We paid off our "new" place last March (with proceeds from the old house we sold).

On the old house we "self escrowed" when we did a 15 year loan so I guess that is why I'm having a time understanding this Edlman guy about not paying off your mortgage.
It's been like 6 months for me and, so far, I have absolutely no problem not having a mortgage.


Oh yeah, Congratulations Meathead on the PAYOFF!!!

[The emperor has no clothes]

Thanks TX 

(You have to take some advice with a grain of salt) 

[Jess from VA]

The best part of having no mortgage anymore (besides the feeling of satisfaction), is watching your checking account grow.... faster than it ever has.

Don't know about your AK property payment, but that aside, you will build cash, and that is always a welcome thing heading for (or in) retirement.

I just paid cash for my new Dodge Ram Promaster 2500, and it came right out of checking.  (not a nickel from long term savings) (and could not have happened if I was still paying my mortgage)

Or, as I call it, the USS Yorktown.  


I'm well aware that keeping all the money you can in your own pocket is better than paying off low interest debt (and mortgage interest is as low as it gets), but as we venture into old age (with little to no investment in or reliance on a volatile and unpredictable market) owning your home outright is a very satisfying thing.

[98valk]

Ok, someone needs to explain this to me:
Or is this a joke?

***Disclaimer***
Although it says "quote= 98valk" these statements are from Ric Edelman.

should never pay off a mortgage.  house owner takes all of the risk, has all that money locked up and not making money for u. carrying a mortgage the bank takes the risk.  major housing market crash your money is gone.

If not familiar with Ric Edelman he is the top rated financial adviser in the nation yr after yr.

Reason #11: You’ll never get rid of your monthly payment, no matter how hard you try.

You want to eliminate your mortgage so that you don’t have to make any payments in retirement. That’s too bad, because even if you somehow eliminate your mortgage, you won’t eliminate your payments.

But your monthly payments will be EXCESSIVELY lower! Leaving more money in your pocket!
Probably leaving enough to pay off other bills (CCs, car payments, new bikes, etc...) way sooner!
Or creating wealth (see below)

Sure, paying off your mortgage means you no longer make any principal or interest payments. But mortgages are known as PITI, and we’ve only addressed the P and the I. Let’s not forget about the T and the other I — or the M and the R.

Is there house loans out there that cover the "M and R"?
Which I take it means "maintenance and repairs".
Every house I owned (or was buying) I did my own M&R or I paid to have it done!
And STILL had to make the monthly mortgage payments!!

I’m talking about taxes and insurance. Even if you manage to pay off the loan, you’ll still have to pay property taxes and homeowner’s insurance.

DUH!!!

Thus, your goal of “getting rid of the mortgage payment” is impossible! Even if you eliminate the mortgage, you’ll still have tax and insurance payments.

See my first statement of "way lower payments"!

And as long as you own your house, you’ll have Maintenance and Repairs to contend with as well. So don’t bother trying to make your mortgage go away.

Again, still making M&Rs when making a mortgage payment also!

Instead, create wealth so that you can comfortably afford the cost of living in and owning your home.

With the mortgage paid off "creating wealth" should be a lot easier IMO!


Obviously, I'm seeing this in a way different light, so hence the "someone explain" comment.

We paid off our "new" place last March (with proceeds from the old house we sold).

On the old house we "self escrowed" when we did a 15 year loan so I guess that is why I'm having a time understanding this Edlman guy about not paying off your mortgage.
It's been like 6 months for me and, so far, I have absolutely no problem not having a mortgage.


Oh yeah, Congratulations Meathead on the PAYOFF!!!

if u have a 200k house paid off its not making u any money.   200k in certain financial instruments can make one more money than the interest one is paying on the mortgage which most of it one writes off on taxes.   ie. 4% mortgage minus tax write off vs 4% and more in investment income. one has to run all the numbers on paper. most good safe investment funds return 8% yr after yr. its all about running the numbers for each person. and as Edleman always states just building up checking account does not keep up with inflation, the biggest killer for retirees besides health costs each yr.
his site has a lot of free info.
or refinance the paid off house buy a rental and have positive rental cash flow.

[Oss]

congrats Rob

Our last payment just went in last week. We also prepaid the taxes for this year as there is now a limit on the deductability of taxes paid etc.

NY real property tax blows chunks but at least the mortgage part is now over.

I said to Bonnie lets get a 3rd Valkyrie....the silence was deafening   

Remember don't burn the mortgage satisfaction.  It has to be recorded or you are still on the hook !!

[msb]

Paid 64K for a new house in 1985. Paid off our mortgage in 14 years and enjoyed a good life raising our daughters through their teen years and paying for their universty educations, etc. without the burden of a mortgage payment and cumbersome debt. Sold that same house last year for 750K and purchased a brand new one outright further out where we plan to retire for 500K...I think it was  pretty good investment. I also think that freedom from debt and worrying about mortgage rates, and knowing that you own your home outright are positive things that add to the quality of life (which really, is what it'a all about, right?). Accumulating wealth is great and a worthwhile endeavor of course, but not at the absolute expense of your family living a good life along the way.
Congrats to you and your wife Rob...it's a good accomplishment

[Robert]

Congrats on paying off the house. 

I remember when I paid off my first house it was such a good feeling, had paid off 2 more since then. So you dont have to be old to payoff a house.

[Robert]

The best part of having no mortgage anymore (besides the feeling of satisfaction), is watching your checking account grow.... faster than it ever has.

Don't know about your AK property payment, but that aside, you will build cash, and that is always a welcome thing heading for (or in) retirement.

I just paid cash for my new Dodge Ram Promaster 2500, and it came right out of checking.  (not a nickel from long term savings) (and could not have happened if I was still paying my mortgage)

Or, as I call it, the USS Yorktown. 


I'm well aware that keeping all the money you can in your own pocket is better than paying off low interest debt (and mortgage interest is as low as it gets), but as we venture into old age (with little to no investment in or reliance on a volatile and unpredictable market) owning your home outright is a very satisfying thing.

Jess is that your garage 

You cant hide money.

Do you have the 5 cylinder diesel in it?

[sandy]

Jess; I love the new van but it needs more chrome.

BTW: My first mortgage in 1973 was $156 (PITI). My current home is payed for but taxes are $90/month plus $60/month for insurance. Is this progress?

[Kidd]

We own 7 properties , all PAID for , live in one , rent the others out  .
Bought 6 of them when the  market crashed  in 2010  or so for $75K each   ,   now they are worth over $200K   each .

It may be better to keep a mortgage  on your home  , the thing is , nothing feels better than having the thing paid for .

I have about $90K  worth of credit on several credit cards  in case something comes up , like another good deal

[Jess from VA]

Robert, no that isn't my garage.  I don't have a garage, just a couple 10 x 12 sheds.  It sits in the driveway, right under the 90yo white oak with fall acorns.  (All my posted pics are from online, not my own).  

The choices in the Promaster are the 3.6L Pentastar 6 cyl gasser; 280HP, really quick for a big heavy truck, mated to 6 speed auto trans, smooth as silk, and easily gets 17-20mpg (which I have).  OR, a 3L 4cyl diesel, with 174HP, with a really strange automatic shifting manual trans that is jerky and no one likes, and only gets a couple more mpg.  The only reason to get the diesel is if you plan to put a zillion miles on it. (The 5 diesel was only in the original Sprinter, though I didn't look at new Mercedes Sprinters... at $50-60K)

Sandy, no chrome on this thing but the Ram badges.  You can order a chrome grill, but it looks wrong.  With the commercial (fleet) user in mind, all the parts that get bumped in accidents are made to be cheap to fix.  The front bumper is all rubber/plastic, taller than where nearly all cars and trucks will hit you, and comes in three pieces so you only have to replace the parts damaged, and not a whole front clip.  The headlights and tail lights (usually expensive to replace) are also well above ordinary collision areas.  The cutouts in the front bumper are to stick your foot in so you can reach to wash the picture window (I still can't reach the top center)

The front wheel drive with no shaft means no tunnel down the centerline, giving it the lowest floor in any van made, only 21 inches from the ground.  The roof is 6" 4" tall (inside).  The floor was pretty slippery, so I got it sprayed with Rhinoliner which looks and works great, and quieted it down some (though it's really amazingly quiet for a big truck).  The brakes are big, ABS all around, and made by Brembo.  24 gal tank.  Also, trans and oil coolers.

My payload is over 5K lbs.  The big drawback from front drive is only a 5K lb towing ability, but I hate towing and will never do it (it's why I wanted it big inside).  

Not trying to hijack the thread, but I am loving this thing, and enjoy the heck out of driving it around.  I look down into every 2500 and 3500 truck and SUV on the road, and see brake lights on the horizon.  I took it out for a drive this past weekend instead of the bike.  

When I find some small chrome lettering to match the Ram badges, I'm going to put USS Yorktown in back.  

[Beardo]

   ...been thinking one of those or a Ford Transit would make a cool toy hauler/camper to take the bike down south for a week or 2 in the middle of winter.

[Leathel]

should never pay off a mortgage.  house owner takes all of the risk, has all that money locked up and not making money for u. carrying a mortgage the bank takes the risk.  major housing market crash your money is gone.

If not familiar with Ric Edelman he is the top rated financial adviser in the nation yr after yr.

https://www.edelmanfinancial.com/education-center/articles/11-great-reasons-to-carry-a-big-long-mortgage
 
https://www.edelmanfinancial.com/education-center/articles/yes-even-under-the-new-tax-law-you-should-still-carry-a-big-long-mortgage

Reason #11: You’ll never get rid of your monthly payment, no matter how hard you try.

You want to eliminate your mortgage so that you don’t have to make any payments in retirement. That’s too bad, because even if you somehow eliminate your mortgage, you won’t eliminate your payments.

Sure, paying off your mortgage means you no longer make any principal or interest payments. But mortgages are known as PITI, and we’ve only addressed the P and the I. Let’s not forget about the T and the other I — or the M and the R.

I’m talking about taxes and insurance. Even if you manage to pay off the loan, you’ll still have to pay property taxes and homeowner’s insurance. Thus, your goal of “getting rid of the mortgage payment” is impossible! Even if you eliminate the mortgage, you’ll still have tax and insurance payments.

And as long as you own your house, you’ll have Maintenance and Repairs to contend with as well. So don’t bother trying to make your mortgage go away. Instead, create wealth so that you can comfortably afford the cost of living in and owning your home.

I have had this discussion with a friend who went down the road of renting for life, he has more income than me by far so he should have been able to save lots of money to invest...... but he hasn't followed his goals, then you add the fact that houses have increased in price in a huge was since we both started working....his rent was more than my mortgage after 4 years and now 25+ years later his $125 a week is now $650 a week rent and I just pay my power/ insurance etc....paid my mortgage off 10 years ago.

I purchased my house for $120K It now has a value of $725K approx (going on other sales, minimum $600K)
 
But I also invested in a business as I finished the mortgage so I still have that mortgage running so not without debt, paid 200K of that debt off and as soon as its near paid off I will buy something else, a rental house or rent the business and start another....not sure yet.

I am not a good saver so if I was renting I would have waisted any spare money I had on "Stuff"

I still kick myself I didn't buy another house as an investment in my old home town, prices have gone up $450K in 5 years.... 

[Leathel]

When you pay off your home mortgage. That’s just what we did today. Kind of a strange feeling. First time in my life, except for selling them.

Saaweeet

Now just start putting the money aside for investments & enjoyment (holidays etc)....you have been without it for all these years so saving should be easy......"Should"

[cookiedough]

congrats,  had the 30 year switched to 15 year and paid house off as well before age 40.  Then again,  my mortgage was only around 50K total not having a fancy house or anything... 

Never understood the reasoning on having a HUGE fancy house with HUGE mortgage when the interest is killing you

[Serk]

Never understood the reasoning on having a HUGE fancy house with HUGE mortgage when the interest is killing you

4 kids is a pretty strong motivator for some elbow room...

[98valk]

  ...been thinking one of those or a Ford Transit would make a cool toy hauler/camper to take the bike down south for a week or 2 in the middle of winter.

nice build up here
https://advrider.com/index.php?threads/ford-transit-adventure-van-build.1271467/

[Jess from VA]

 ...been thinking one of those or a Ford Transit would make a cool toy hauler/camper to take the bike down south for a week or 2 in the middle of winter.

Of course, this was my plan for a long time.  Be able to ride an Interstate up inside (only a 21" from ground to floor), into a chock, strap it to several of the many existing tie downs (each rated at 1K lbs), and go anywhere I want with the bike, and still have room to camp in back.  Use RV parks with power, laundry cheaper than motels with bugs.  



Here's a 2500 high roof with a Polaris RZR 900 Trail inside.


And, front drive is so much better in snow.

[Beardo]

  ...been thinking one of those or a Ford Transit would make a cool toy hauler/camper to take the bike down south for a week or 2 in the middle of winter.

nice build up here
https://advrider.com/index.php?threads/ford-transit-adventure-van-build.1271467/

Yeah, that article really got me thinking about it. 

Jess...great minds think alike. Although mine will probably have to wait til the Wing is paid off. 

My brother in law is a very talented welder/fabricator...I’m thinking a lot of diamond plate, bunks, small fridge, tool box, some shelving, etc.

Someday.


Sorry for the hijack meathead.