Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-06-2008, 08:33 AM   #21
Recycles dryer sheets
ikubak's Avatar
 
Join Date: Dec 2007
Posts: 391
Congrats! I've been mortgage free for almost 4 years. Now I wonder how people manage to pay a mortgage for all those years. I have friends with a mortgage and two car payments and I think, damn...what a way to go through life.
__________________

__________________
Retire date Jan. 10, 2018
ikubak is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-06-2008, 08:36 AM   #22
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,613
Quote:
Originally Posted by ikubak View Post
Congrats! I've been mortgage free for almost 4 years. Now I wonder how people manage to pay a mortgage for all those years. I have friends with a mortgage and two car payments and I think, damn...what a way to go through life.
Some people are just addicted to stuff. That stuff addiction can get you into a real financial bind. Best case, it only means being forced to work a few more years to pay for your stuff "fix." Worst case you can never break free of the work force and you start losing your stuff because you can't make the payments on too much of it any more.

I like stuff as much as anyone, but these days "stuff" represents a complication of life and a draining of our "financial freedom fund." As a result, I've become very selective about which "stuff" is worth it.
__________________

__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 03-06-2008, 09:09 AM   #23
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by lucija View Post
This is quite an accomplishment for us which, sadly, will slip by totally un-noticed by our family & friends. Even though a part of me wants to tell everyone, I don’t want to create a “rift” by making anyone feel uncomfortable (we have several friends who are struggling financially) or somehow less worthy.

I just felt like sharing this milestone with someone…
I honestly can't understand not telling one's family and very close friends. Just possibly NOT one's manager, since that could lead to unplanned really early retirement .
I've told my siblings and parents that we have a 15 year mortgage, and they gasp (thinking there's no way we can afford that, 2 new cars (OK 1 is 2 years old, and the other is 3 years old) ... but only one small car payment, and 4 kids.
I'm really hoping my parents and parents-in-law are still around for the mortgage burning party we'll have.

In any case, I'll stop ranting ....


CONGRATULATIONS!
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 03-06-2008, 09:28 AM   #24
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 191
Quote:
Originally Posted by myself View Post
I honestly can't understand not telling one's family and very close friends....<snip>
You are very lucky. If you had families like ours, you would understand – with one exception, they range (no exaggerations) from folks who had not held on for a job for more than a month or two (with many months/years in between), beach bums and people who are drowning in debt. The last category every now and then attempts to hit us (and whoever else may be around) up for cash.

Pretty much all of our friends are not doing well financially – so, why rub it in…

We did end up telling my SIL/BIL and that felt good! With no other family support on either side, the four of us tend to stick together and help each other out. They always had a general idea of our finances and are the ones who will be inheriting our kids if something happens to us, so it seemed natural and logical thing to do…
__________________
lucija is offline   Reply With Quote
Old 03-06-2008, 10:49 AM   #25
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by lucija View Post
You are very lucky. If you had families like ours, you would understand – with one exception, they range (no exaggerations) from folks who had not held on for a job for more than a month or two (with many months/years in between), beach bums and people who are drowning in debt. The last category every now and then attempts to hit us (and whoever else may be around) up for cash.

Pretty much all of our friends are not doing well financially – so, why rub it in…

We did end up telling my SIL/BIL and that felt good! With no other family support on either side, the four of us tend to stick together and help each other out. They always had a general idea of our finances and are the ones who will be inheriting our kids if something happens to us, so it seemed natural and logical thing to do…
Please accept my apologies for your situation. I was not trying "rub it in", honestly.
My parents aren't drowning in debt, but they still have a decent amount, even though all the kids have been out of their house (and fully functioning on their own,) for about 10 years now. 2 of my siblings have 30 year mortgages (one has an ARM), and the other has a 15 year (at the request of my sister's hubby).
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 03-06-2008, 11:11 AM   #26
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 191
myself - no offense taken... we have accepted our families "as they are" long time ago... we can't "return" them and there's no changing them... a bit of distance seems to work best.
__________________
lucija is offline   Reply With Quote
Old 03-06-2008, 11:48 AM   #27
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 514
Quote:
Originally Posted by myself View Post
2 of my siblings have 30 year mortgages
I don't necessarily think that that alone indicates a problem. My wife and I also have a 30-year mortgage (only 28.5 years to go!).

I think what matters is the "save rate." If someone has a 30 year mortgage and isn't saving anything for retirement, then I'd agree that's a problem. But if a 30 year mortgage allows them to sock away tons of cash every month in their retirement fund, then what's the problem?
__________________
kombat is offline   Reply With Quote
Old 03-06-2008, 12:24 PM   #28
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by kombat View Post
I don't necessarily think that that alone indicates a problem. My wife and I also have a 30-year mortgage (only 28.5 years to go!).

I think what matters is the "save rate." If someone has a 30 year mortgage and isn't saving anything for retirement, then I'd agree that's a problem. But if a 30 year mortgage allows them to sock away tons of cash every month in their retirement fund, then what's the problem?
This is true.
I wasn't attempting to suggest that a 30 year mortgage is a bad thing. In their case, I believe it is (since they'll be 70 or more before it's paid off). But then again, that's JMHO and my be incorrect.
I was merely pointing out that my siblings thought it was rather normal to have a 30 year mortgage, and chose to go that route while saving anywhere from 5%-6% of their income (which is better than most of the US).
Meanwhile lucija just paid their mortgage off!
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 03-06-2008, 12:27 PM   #29
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
FWIW, I know there's not a single "right" way to approach retirement.
I honesty wish I would have learned what I have in recent years about 10 years ago. Then we'd probably be completely debt-free and stashing most of our single income away for retirement ... if not retired already.

Granted, having 4 kids wasn't the best financial move. But it sure is great when I get home from work !
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 03-06-2008, 12:36 PM   #30
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by lucija View Post
We decided not to tell anyone due to all the lamenting we have been hearing lately… it would come across as gloating. .
It might not actually be gloating, depending on how you do it. But, announcing you've paid off your mortgage does open yourself up for further questions. Was your mortgage tiny compared to your total net worth? Therefore, your decsion to pay it off was simply one of convenience or your decision that opportunties in the market to earn more than the mortgage interest were nil? Or, did the original mortgage debt far overshadow your net worth at the time and paying off the mortgage signals some significant financial success?

Who knows? So, when someone shares the fact they paid off their mortgage with me, I just smile and congratulate them and I'm happy because they're happy. But, I don't ask further and therefore I don't really know the financial implication of the event for them.

In that spirit, congratulations! Good job!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 03-06-2008, 12:47 PM   #31
Recycles dryer sheets
 
Join Date: Jan 2008
Posts: 314
Quote:
Originally Posted by youbet View Post
It might not actually be gloating, depending on how you do it. But, announcing you've paid off your mortgage does open yourself up for further questions. Was your mortgage tiny compared to your total net worth? Therefore, your decsion to pay it off was simply one of convenience or your decision that opportunties in the market to earn more than the mortgage interest were nil? Or, did the original mortgage debt far overshawdow your net worth at the time and paying off the mortgage signals some significant financial success?

Who knows? So, when someone shares the fact they paid off their mortgage with me, I just smile and congratulate them and I'm happy because they're happy. But, I don't ask further and therefore I don't really know the financial implication of the event for them.

In that spirit, congratulations! Good job!
My thoughts of talking to family/friends about it (without gloating), were more along the lines of "I'd ask the person what allowed them to pay it off early".
Was it because they had saved so much early, or because the tax break they were getting helped (i.e. putting any tax refunds onto the mortgage instead of a new plasma TV), etc.
I do know someone personally that paid his mortgage off in 5 years. He was (and still is) single. Was never able to take advantage of any tax benefits due to having the mortgage. The house isn't very big, but it definitely fits his lifestyle and goals. He was whining one day about not being sure if he should keep working until he's got $1.5M or $2M in retirement savings. And he could literally retire today (barring any unforseen health issue) without changing his lifestyle at all.
__________________
Primary title "chief moron"
myself is offline   Reply With Quote
Old 03-06-2008, 01:11 PM   #32
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
youbet's Avatar
 
Join Date: Mar 2005
Location: Chicago
Posts: 9,965
Quote:
Originally Posted by myself View Post
My thoughts of talking to family/friends about it (without gloating), were more along the lines of "I'd ask the person what allowed them to pay it off early".
.
Yeah, I hear ya and I get curious about other people's financial situations too. I just try to bear in mind that asking that question might be prying into areas they chose not to share before. Maybe they paid off the mortgage with a big inheritance and had decided, for whatever reason, not to share that inheritance info. Or, maybe they got some big bonuses at work they had decided not to talk about. Or......whatever reason.

In today's world, the classic scenario of folks paying off the mortgage being their primary financial strategy and a marker of financial success isn't as common as it once was. So when you announce you've paid off the mortgage or you ask questions to someone else about paying off the mortgage, you might be opening the door to further inquiries or disclosures beyond what you/they are actually comfortable with.

Like I said, paying off the mortgage has different implications for different people depending on their circumstances. Especially on this board where there are some serious, talented investors (not me!), debt is often just another tool in accumulating wealth.

It's fabulous that lucija accomplished a personal goal of paying off the mortgage. Congrats and it makes me feel good just hearing lucija sound so happy!
__________________
"I wasn't born blue blood. I was born blue-collar." John Wort Hannam
youbet is offline   Reply With Quote
Old 03-06-2008, 01:15 PM   #33
Moderator
bssc's Avatar
 
Join Date: Dec 2005
Posts: 9,936
Congratulations

We didn't tell anyone in the family either, except for my parents, who could be the executors for our estate. Only told a few friends too so you made the right decision.
__________________
Angels danced on the day that you were born.
bssc is offline   Reply With Quote
Old 03-06-2008, 01:19 PM   #34
Full time employment: Posting here.
citrine's Avatar
 
Join Date: Mar 2007
Posts: 944
Congratulations! It is a great feeling to not owe anyone!
When I own a home again....I will be paying it off as soon as I can!
__________________
citrine is offline   Reply With Quote
Old 03-06-2008, 02:37 PM   #35
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 488
Quote:
Originally Posted by lucija View Post
As of this week, we’re mortgage free! We have been meaning to “pay it off” for a few months now, but until now never got around to actually getting rid if it…

This is quite an accomplishment for us which, sadly, will slip by totally un-noticed by our family & friends. Even though a part of me wants to tell everyone, I don’t want to create a “rift” by making anyone feel uncomfortable (we have several friends who are struggling financially) or somehow less worthy.

I just felt like sharing this milestone with someone…

I paid off my mortgage ten years ago and ten years early. I told some of my friends who were still paying huge monthly mortgage payments.
They gave me a lecture about how stupid it is to pay it off early. The so called tax benifits and all that. It took me only a few years to save back the money I used tp pay off the loan, while my friends have remortgaged and have many years left to pay.
I now have 100% equity in a home worth 500k that I paid 140k for.
I really don't tell people anymore that my house is paid off unless they ask.
__________________
Razor is offline   Reply With Quote
Old 03-06-2008, 03:13 PM   #36
Recycles dryer sheets
 
Join Date: Dec 2006
Posts: 191
Quote:
Originally Posted by youbet View Post
... <snip>...
In today's world, the classic scenario of folks paying off the mortgage being their primary financial strategy and a marker of financial success isn't as common as it once was. So when you announce you've paid off the mortgage or you ask questions to someone else about paying off the mortgage, you might be opening the door to further inquiries or disclosures beyond what you/they are actually comfortable with.

Like I said, paying off the mortgage has different implications for different people depending on their circumstances. Especially on this board where there are some serious, talented investors (not me!), debt is often just another tool in accumulating wealth.
... <snip>

Yes, leveraging someone else's money is great, but we decided against it... this revelation hit us towards the end of 2002 when the market was still tanking and we got hit with the following news (all within a couple of months): we found out I was pregnant, DH's job got outsourced and mine somehow became "obsolete". It all worked out in the end, but suddenly not having a bunch of bills sounded great.

Paying of the house was never a #1 financial priority for us, but when presented with the opportunity, we took it...
__________________
lucija is offline   Reply With Quote
Old 03-06-2008, 04:49 PM   #37
Dryer sheet aficionado
 
Join Date: Feb 2008
Posts: 39
Yes, I hear you. We paid our house off last summer (35 years old for me, 33 for wife) and the major motivation had come in 2000 when the mega-corp I worked for at the time laid off 10% of the development staff and then, 6-7 months later, laid off 50% of the remaining staff...fortunately I survived the cuts. However, one of the development managers still works as a sales associate at the local Sears and has been trying to get back into the business since. So each time I was through there to go to the food court he was a reminder to take advantage of the good times while they last...
__________________
prgsdw is offline   Reply With Quote
Old 03-06-2008, 11:41 PM   #38
Thinks s/he gets paid by the post
 
Join Date: Apr 2007
Posts: 1,304
Congrats ... it's like finding money in your pants pocket that you didn't know you had ... but even better ... it happens every month.
__________________
Life is GREAT!
megacorp-firee is offline   Reply With Quote
Old 03-07-2008, 12:22 AM   #39
Recycles dryer sheets
 
Join Date: Jun 2007
Posts: 316
To heck with any arguments against paying it off early. They are based in sound mathematical principles, but you can't put a price on pride, security, or satisfaction in obtaining a material goal. I've been mortgage free for a little over a month, and I often find myself marvelling and thinking "yup, it's all mine and they can't take it away". It's a grand feeling isn't it.

As for who to tell, it's funny that you can pay off a car and you'd get a high 5 from your friends, but mention that the house is free and clear and be prepared for some low key hostility.

I find that the toughest part is waiting for the sloths at land titles to get off their lazy duffs and send me my mortgage diploma or whatever they call the sheet of paper that says that I own it.
__________________
Grizz is offline   Reply With Quote
Old 03-07-2008, 01:35 AM   #40
Moderator Emeritus
laurence's Avatar
 
Join Date: Feb 2005
Location: San Diego
Posts: 5,234
Congratulations!

A co-worker of mine who also attends the same church as I paid off his mortgage 3 years ago. He and his wife have been married for thirty years yet act like newlyweds, he practically skips through the halls, and is never phased or ruffled by anything that happens at work. He says he'll retire when fixing computers "stops being fun".

He has my unending admiration and respect. I have 17 years left on my 20 year mortgage, I look forward to the day.
__________________

__________________
laurence is offline   Reply With Quote
Reply

Tags
mortgage


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Mortgage dilemma camberiu FIRE and Money 20 11-10-2007 06:41 PM
Walking from mortgage FinallyRetired Other topics 22 08-05-2007 09:40 AM
Mortgage Rates Arc FIRE and Money 37 03-26-2007 09:21 PM
Any mortgage brokers here? thefed Other topics 15 03-03-2007 07:02 PM
Not permitted to deduct mortgage interest from taxes - mortgage v renting? claire FIRE and Money 12 01-06-2007 04:43 PM

 

 
All times are GMT -6. The time now is 04:38 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.