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Old 12-10-2012, 10:55 PM   #21
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Congratulations!!!
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Old 12-11-2012, 05:32 AM   #22
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Great work!

We paid off our mortgage a little more than ten years ago. The surplus cash that was thus made available was ploughed into our investment savings, and was very helpful in reaching FI.
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Old 12-11-2012, 06:42 AM   #23
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It is a great feeling.

I made my last mortgage payment 10 years ago, it really helped me think about ER.

I always say pay yourself, not the bank.
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Old 12-11-2012, 06:53 AM   #24
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Congratulations!
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Old 12-11-2012, 07:08 AM   #25
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Congrats on the payoff, it's a great feeling to know you'll never have to write another check to the mortgage co.!
+1
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Old 12-11-2012, 07:36 AM   #26
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Congratulations. I felt the same way and I don't care what the pay off skeptics think.
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Old 12-11-2012, 07:56 AM   #27
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Great feeling isn't it?

Quote:
Originally Posted by bssc View Post
They should automatically file a document stating that they no longer have a lien on the property, can't hurt to double check in a few months.
+1 on this.

When we paid off ours it was at a time when the bank had sold the mortgage, the purchasing bank was being bought up by another, and all that stuff going on, which was part of the incentive to do it then rather than later.

It took about six months to get the lien released, and the nice lady who found the paperwork said it was in a box stored in a hallway. Not exactly confidence-building. The six month delay wasn't an issue for us but I kept after it because I knew we were going to move in a couple of years and wanted it squared away long before then.

What could have been a major headache when we sold the house was averted because we kept after getting the lien release done.
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Old 12-11-2012, 08:12 AM   #28
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Congratulations, it's a great feeling.
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Old 12-11-2012, 08:17 AM   #29
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As Milton and Grasshopper wrote, paying off the mortgage was a big step in the direction of becoming FIREd. I paid off mine in 1998 after having it for only 9 years. I was in my peak earning years of working full-time and it was during the boom market of the late 1990s.

Even though I knew what was going to happen, I was still amazed at how much lower my expenses were without the mortgage. One biweekly paycheck began to cover my expenses for an entire month as my savings rate soared to over 50% for the next few years.

It took a few weeks for the bank to send me all the documents related to paying off the mortgage including the original stock certificate (I own a co-op apartment) but that was fine. I had to file a small form with the county clerk to indicate a change in ownership from the bank to me. Both were kinda cool.

Because I had ACH payment for the mortgage for many years, I had not been writing paper checks. But it was nice not having to enter any payments nto my checkbook register.

On the tax side, I was still itemizing my deductions on the federal level although I had to give myself a pay "cut" by reducing my exemptions. On the state side, however, I was able to switch to the standard deduction, one key reason which made paying off the mortgage a good move financially. It was also the first time I had a different number of exemptions for state versus federal, requiring a special state-only version of the W-4 form to be filed with my employer.
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Old 12-11-2012, 09:15 AM   #30
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Congratulations! At this point we don't plan to pay ours off early given the incredibly low rate we just refinanced to, but we also know that due to the low rate, if we decide to go that way, it will be that much quicker and easier to pay it off. Amazing how a 15-year mortgage knocks out principal so much faster than a 30-year note!
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Old 12-11-2012, 09:38 AM   #31
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Congratulations!

We are planning to pay ours off next June. I'll be able to stop taking a withdrawal from our retirement accounts because we will be able to live on our pension/SS income alone.
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Old 12-11-2012, 10:45 AM   #32
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As my kids would say "Boom sauce"!!!! Congrats to you. We did the same last year, and it is a very liberating feeling. I still have to pinch myself on occasion because after having a house payment for decades, I really never thought we wouldn't have one.
Boom sauce?
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OP: Congrats on paying off the mortgage!
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Old 12-11-2012, 10:49 AM   #33
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sorry but I think we need a picture of you on the front porch with a Corona and your feet up.
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Old 12-11-2012, 11:02 AM   #34
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Congrats, it is a liberating sensation indeed! And now you can accelerate your progress toward FI, that was the real payoff for me...
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Old 12-11-2012, 11:48 AM   #35
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I think the first time I posted here was to ask the "experts" whether I should pay off my mortgage. I remember paying off the little that was left and the result.

It was like the first day of the rest of my life. From that point on I never have carried any debt for over a couple of months and have saved every penny found in my pocket or on the ground. Our savings boomed while our timeline to retirement shrunk.
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Old 12-11-2012, 11:49 AM   #36
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Way to go. It must be a great feeling. Excellent accomplishment. You managed your finances well and deserve all the good feelings.

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Old 12-11-2012, 03:02 PM   #37
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Congratulations. My mortgage will be paid off in August of 2013. I'm counting down the months. What will I do with the extra money? I'm saving up $30k for an account for the next car and/or house repairs. Then I won't be putting away emergency money each month either. In 2yrs we will be very well set for month to month expenses for when DW retires.
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Old 12-11-2012, 05:59 PM   #38
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Congratulations! Enjoy that debt free feeling.
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Old 12-11-2012, 06:36 PM   #39
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Quote:
Originally Posted by bssc View Post
Congratulations. They should automatically file a document stating that they no longer have a lien on the property, can't hurt to double check in a few months. We are happier without one.
Quote:
Originally Posted by Walt34 View Post
Great feeling isn't it?



+1 on this.

When we paid off ours it was at a time when the bank had sold the mortgage, the purchasing bank was being bought up by another, and all that stuff going on, which was part of the incentive to do it then rather than later.

It took about six months to get the lien released, and the nice lady who found the paperwork said it was in a box stored in a hallway. Not exactly confidence-building. The six month delay wasn't an issue for us but I kept after it because I knew we were going to move in a couple of years and wanted it squared away long before then.

What could have been a major headache when we sold the house was averted because we kept after getting the lien release done.
That's a crazy story! I'd have been really paranoid by then. Our loan was with Navy Fed, they keep their loans and send they would file with the county and send the paper to us. So I'm not as worried but I definitely want it in writing!

Quote:
Originally Posted by MBAustin View Post
Congratulations! At this point we don't plan to pay ours off early given the incredibly low rate we just refinanced to, but we also know that due to the low rate, if we decide to go that way, it will be that much quicker and easier to pay it off. Amazing how a 15-year mortgage knocks out principal so much faster than a 30-year note!
Yes, we initially had a 30-yr when we bought it (2001), then I refinanced to a 15-yr when rates dropped. We got 4.5% and I thought for sure we'd never see rates so low again I'm jealous of all of you that got in even lower! But not enough to have a mortgage...

We're really excited, and will be putting that money into out savings pot - last thing (financially) we need to do before ER is build the cash cushion.
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Old 12-12-2012, 12:37 AM   #40
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Well done. Congratulations.
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