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paid off mortgage yesterday
10-21-2016, 07:45 AM
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#1
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Confused about dryer sheets
Join Date: Aug 2007
Posts: 9
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paid off mortgage yesterday
Hello again everyone. I don't stop by often, so it's been awhile since I last posted.
I enjoy reading progress made by others on their ER journey. As a way to encourage others, I would like to share my own progress. I paid off my mortgage yesterday. I've been pre-paying since day one. It took me 12 years to pay off my 15 years mortgage.
I won't get into the intellectual discussion on the merits of paying off a mortgage vs. investing, but not being in debt feels pretty darn good.
So for those still chipping away, go get'em! We'll wait for you here.
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10-21-2016, 07:49 AM
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#2
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
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__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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10-21-2016, 08:06 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Location: Texas
Posts: 1,065
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One of the best feelings ever is to be debt free! Enjoy...
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10-21-2016, 08:45 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Apr 2012
Location: Nashville
Posts: 2,504
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Congrats!
(DW convinced me to refinance instead of paying off immediately; thus, we will soon be making our first payment on a new 15 year mtg--but don't know how long we'll keep it. The concept of no long-term debt is attractive, no doubt!)
__________________
OMY * 3 2ish Done 7.28.17
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10-21-2016, 08:47 AM
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#5
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 399
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Congrats! That was a great feeling for us also.
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10-21-2016, 08:56 AM
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#6
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: May 2008
Location: No fixed abode
Posts: 8,764
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Quote:
Originally Posted by Tailgate
One of the best feelings ever is to be debt free! Enjoy...
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I consider myself to be debt free, even though I have a mortgage. I can pay it off whenever I feel like it. It's just a different asset allocation, arbing the mortgage to reallocate money out of equity into equities. Fungibility rules.
Still, for those who feel differently, paying it off is great! Congratulations.
__________________
"Good judgment comes from experience. Experience comes from bad judgement." - Anonymous (not Will Rogers or Sam Clemens)
DW and I - FIREd at 50 (7/06), living off assets
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10-21-2016, 08:57 AM
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#7
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Dryer sheet wannabe
Join Date: Aug 2016
Posts: 13
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Congratulations. We are just beginning to pursue the same goal, can't wait.
__________________
You get what you inspect, not what you expect.
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10-21-2016, 09:47 AM
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#8
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Moderator Emeritus
Join Date: Jan 2007
Location: New Orleans
Posts: 47,468
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__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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10-21-2016, 09:53 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Sep 2016
Location: Acworth
Posts: 1,214
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Congrats
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10-21-2016, 10:05 AM
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#10
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Moderator Emeritus
Join Date: Sep 2007
Posts: 17,773
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Quote:
Originally Posted by harley
I consider myself to be debt free, even though I have a mortgage. I can pay it off whenever I feel like it. It's just a different asset allocation, arbing the mortgage to reallocate money out of equity into equities. Fungibility rules.
Still, for those who feel differently, paying it off is great! Congratulations.
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Yes, we consider we now have an allocation in real estate with the house paid off. Interesting re debt free--I never thought of it this way. Does that apply to all obligations as long as one can pay them off whenever one feels like it? We are planning to buy a car soon and may or may not finance it, but it will sure feel like a debt to me if we do take out a loan.
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
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10-21-2016, 10:14 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2003
Location: Florida's First Coast
Posts: 7,654
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Best thing we ever did... Congratulations....
__________________
"Never Argue With a Fool, Onlookers May Not Be Able To Tell the Difference." - Mark Twain
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10-21-2016, 10:15 AM
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#12
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Thinks s/he gets paid by the post
Join Date: Dec 2009
Location: Alberta/Ontario/ Arizona
Posts: 3,393
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Quote:
Originally Posted by harley
I consider myself to be debt free, even though I have a mortgage. I can pay it off whenever I feel like it. It's just a different asset allocation, arbing the mortgage to reallocate money out of equity into equities. Fungibility rules.
Still, for those who feel differently, paying it off is great! Congratulations.
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A reasonable approach as long as you treat the mortgage as an offset to your FI AA? You should if you want to maintain your AA. If you do, you should really view the mortgage funding cost against your FI returns. Maybe not as good a spread as you previously thought?
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10-21-2016, 10:33 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,515
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Quote:
Originally Posted by Danmar
A reasonable approach but do you treat the mortgage as an offset to your FI AA? You should if you want to maintain your AA. If you do, you should really view the mortgage funding cost against your FI returns. Maybe not as good a spread as you previously thought?
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Agreed. I will be paying mine off when I no longer get a tax benefit, since I still w*rk. In this low-rate environment, the guaranteed return will be pretty attractive at that point.
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10-21-2016, 10:43 AM
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#14
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Recycles dryer sheets
Join Date: May 2010
Location: Cincinnati
Posts: 383
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Thanks for sharing.
As much as I come here to gather information and learn, I also come here daily for motivation and to read about others in the same situation.
I'm in the debt aversion camp as well, just going about my mortgage payoff a bit differently.
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10-21-2016, 10:56 AM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,633
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We paid off our mortgage in 2010 and have had no regrets and sleep better at night debt free. Those who choose to have a mortgage are leveraging their investments assuming they will make a profit. It's a matter of risk tolerance and our choice was to keep a roof over our heads in case the market tanks.
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10-21-2016, 11:02 AM
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#16
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Full time employment: Posting here.
Join Date: Mar 2012
Location: seattle
Posts: 646
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Congratulations!
Now just remember to keep an eye out for the property tax obligations...
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10-21-2016, 11:40 AM
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#17
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,973
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Quote:
Originally Posted by bld999
Congratulations!
Now just remember to keep an eye out for the property tax obligations...
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+1.
True, Unlike a coffee pot that you buy and own outright. A property, due to taxes is always never paid in full.
However, we have been debt free for well over a decade, it feels good, even if we have paid over $50,000 in property taxes during that time.
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10-21-2016, 11:48 AM
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#18
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Full time employment: Posting here.
Join Date: Jan 2014
Location: Austin
Posts: 661
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Quote:
Originally Posted by Sunset
+1.
True, Unlike a coffee pot that you buy and own outright. A property, due to taxes is always never paid in full.
However, we have been debt free for well over a decade, it feels good, even if we have paid over $50,000 in property taxes during that time.
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The joke around here is that you never really own your home, you're just renting it from the county tax office.
__________________
ER'd 6/1/2014 @ age 53. Wow, is it already 2022?
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10-21-2016, 01:37 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Dec 2015
Location: Michigan
Posts: 4,939
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Well done. I also greatly enjoyed paying off my mortgage. The added cash flow has been great.
__________________
"The mountains are calling, and I must go." John Muir
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10-21-2016, 01:49 PM
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#20
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Thinks s/he gets paid by the post
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 4,344
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Congratulations, it is always a good feeling to eliminate debt. The financial aspects of whether to do it vs other investing of that money is a personal decision and choice. However the peace of mind factor having a fully paid for house is definitely worth something in the long term.
__________________
The problem isn't artificial intelligence, it's natural stupidity.
You can't spend yourself to prosperity.
Semi-Retired 7/1/16: working part-time (60%) for now [4/24/17 changed to 80%]
Retired Aug 2, 2017; age 53
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