donheff
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Congratulations. I felt the same way and I don't care what the pay off skeptics think. 
Happy day - paid off the mortgage!
- Thread starter WM
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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.
+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.
Congratulations, it's a great feeling.
scrabbler1
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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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.
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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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!
Free To Canoe
Thinks s/he gets paid by the post
ducky911
Recycles dryer sheets
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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.
Tadpole
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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.
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.
martyp
Thinks s/he gets paid by the post
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.
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!
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.
obgyn65
Thinks s/he gets paid by the post
Well done. Congratulations.
Retch The Grate
Full time employment: Posting here.
congrats
smileydog
Recycles dryer sheets
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Good Job!
I know for me paying off the mortgage was key for the FI part if RE. Debt free is the way to be!
I know for me paying off the mortgage was key for the FI part if RE. Debt free is the way to be!
It was actually a few days ago, but what a great day! Funny, too - I called to find out how to make the final payment, assuming they'd have to send paperwork or we'd have to go into a branch. Turns out you can make the final payment over the phone, they just transfer the money from your checking account and presto!
I knew we'd be able to pay it off by the end of this year or early next year, but it was still stunning to actually do it. Partly because, as DH said, it makes the prospect of FIREing in a few more years that much more real. Also, just because it's a big accomplishment and I'm impressed with ourselves for pulling it off.
So - a huge thank-you to the community here for all the great wisdom and encouragement for those of us who aren't there yetI can't even tell you what a difference it's made in helping us get where we're trying to go.
Dont forget to get the deed from your bank. In my case, I was directed to the county to obtain it which I have not had a chance to go there and that was 4 months ago. Thanks for the indirect reminder
meierlde
Thinks s/he gets paid by the post
One faster way to tell if the morgage co regards the mortgage as paid off, is how long till they refund the escrow account. (You will want that money since now you have to pay the taxes and insurance yourself). This should happen long before the mortgage release appears.
Well, yeah, I was!
A number of factors pushed us to pay it off. The bank originally holding the mortgage was a local bank and we chose it because they were local and up to then they did hold their own mortgages so selling it was a major policy change for the bank.
Then the purchasing bank resold it to another within a month or two - I envisioned our file just getting lost in the shuffle and we never be able to clear the note, or at least not without a lot of expensive legal help.
We received a small inheritance that was not even enough to pay off the mortgage but was enough to leave a comfortable enough margin if we did pay it off, so we did.
Zero Debt is really kinda neat.
Well, congratulations are certainly in order. I think some of us do like to take a different approach though. And I believe everybody's situation is different. When I retired in 2010 I had a paid off house which took a lot of sacrifice the last 10 years before I retired. When I did retire we built our dream ranch. A much smaller house but in a much better neighborhood. We put down 20% and invested the rest. After two no cost refi's our rate is at 3.375. With the write off for mortgage interest, real estate and state taxes, medical above 7.5%, this is practically free money. The PITI is only 25% of my pension. The reality is we could write a check from our investments tomorrow and pay it off. So I think we keep the mortgage. But again everybody has different situations. I think though we have been down this road before.
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