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Old 10-21-2016, 01:58 PM   #21
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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.
I, too, won't debate the merits. But like you the right decision for me was to pay off my mortgage (for that same good feeling of being debt-free). I call it my sleep-at-night factor. Congrats.
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Old 10-21-2016, 02:10 PM   #22
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congrats, feels good, I hate debt even so called smart debt, not for me either. Enjoy the fruits of your good planning.
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Old 10-21-2016, 02:45 PM   #23
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It was a good day when I paid off the mortgage -
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Old 10-21-2016, 04:33 PM   #24
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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.
Congrats! I was also a debt adverse person and getting my mortgage paid off was a major step towards being FIRED

Enjoy
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Old 10-21-2016, 04:40 PM   #25
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It's a great feeling to get out from under any obligation.

It was also a good feeling for me today finsihing painting the bedrooms in my "old" house--getting ready to get it on the market. And it'll be a better feeling when it's sold and I can replenish my cash account.

Congratulations to your early payoff. I just love it when a plan of action worlks.
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Old 10-21-2016, 04:48 PM   #26
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Congrats! In the world of $$$, not much feels as good as owning a mortgage free home. Here in Georgia, it is especially great since if you have a mortgage, you actually have to deed your home to the bank...and to me, that's just something I don't like. I know, it's just a a mental thing, but it's still bothersome to me.
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Old 10-21-2016, 11:07 PM   #27
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Congrats! Someday we'll get there!
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Old 10-21-2016, 11:44 PM   #28
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Good for you

I remember going to the bank and making the last mortgage payment. No champagne, no balloons, just stamp the check and a thank you from the teller. This process is a give away to an old school lifestyle 30 years ago. To tell the truth, I did not know what to expect but it was almost a letdown. But then when my husband got home we just laughed at my feelings and congratulated each other for a job well done.

Twenty five years later, we still live in our home, and being debt free at a young age, just reinforced the frugal habits we had while we were young. It has given us a very stable life and I am forever grateful.

My husband has been retired for many years and I am semi retired. Our financial problems today are.......do we have too much money saved....perhaps we should spend money more frivolously....we have earned the right to just blow money on whatever we want....?

So he has the car he has always wanted and I have a beautiful diamond ring. We are frugal but every once in a while we just blow the budget and indulge....and then go about our frugal ways.

My wish for you is that you have the life that you planned for.....enjoy your financial freedom.
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Old 10-22-2016, 06:03 AM   #29
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Congratulations !!!!! I hate having a mortgage payment..... I have considered pulling the money from our savings..... Who knows, we may do that in 5 more years
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Old 10-22-2016, 07:10 AM   #30
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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.
That is the way we look at it. We have a mortgage and 2 car loans, but they total less than a quarter of cash on hand, so if needed we can pay them off. But the interest rates and payments for these items are so ridiculously low (in my view) I have no problem having them. Eventually we may pay them off early, but it is not a priority.

To the OP, congrats!
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Old 10-22-2016, 07:20 AM   #31
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It was a good day when I paid off the mortgage -
My rational is simple really. Our Mortgage would be about $4300 a month even with more than 25% Equity. I love having that extra Income.
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Old 10-22-2016, 07:27 AM   #32
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Awesome feeling, eh? Congratulations.

Second cool experience is paying cash for your next home. Super easy process when you do. Closing took 10 minutes...
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Old 10-22-2016, 07:48 AM   #33
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We paid off our house on 03/21/2001, I remember looking at our account that night after the wire was completed and seeing $0.00 our mortgage account. Since then we auto-drafted the payment amount into various after tax funds, educated two children (state schools), traveled extensively and retired. Two things: (1) the grass in your yard feels different when you own your house and (2) if you are totally debt free, your options and opportunities are infinite.

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Old 10-22-2016, 08:20 AM   #34
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Congrats to the OP! We punched ours out a few years ago. Great feeling and I still like being debt free.
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Old 10-22-2016, 09:44 AM   #35
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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? .
No, not in my opinion. If you owe money, you are not debt free, whether that be a mortgage, car loan or credit cards.

We recently bought a car and could not pass up the 0% financing. So, for the first time in about 12 years, we are not debt free. The fact that we could pay off the loan tomorrow does not change that fact.
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Old 10-22-2016, 11:21 AM   #36
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Congratulations, it is always a good feeling to eliminate debt. ...
Sorry, but this just is not true. You can't say "always".

For me, it is a good feeling to be borrowing money at a very low rate, taking a tax deduction for it, and keeping that money invested. I would not have felt good about paying it off, and losing those market returns.


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The financial aspects of whether to do it vs other investing of that money is a personal decision and choice.
Correct, that why always/never do not apply.

Quote:
However the peace of mind factor having a fully paid for house is definitely worth something in the long term.
I get piece of mind knowing I have the liquidity to take on any big surprises. This could be compromised if all that money was toed up in the house.

Obviously, people can do what they want. But some of these reasons really don't hold water.

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Old 10-22-2016, 11:46 AM   #37
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oh no! turn away, pay off mortgage debate be beyond thar shoals! LOL! It's our political debate, isn't it? Politics, religion, early mortgage payoff. Interest rates are extremely low, it's true. It's all about how you want to structure your portfolio, risk aversion, and cash flow and tax considerations. I can't see buying a 0.3% T-bill when you've got a mortgage, but I can see a point along the risk/reward investment "number line" where keeping the mortgage makes mathematical sense. We aren't paying off the car as it's 0.9%, that's for sure.
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Old 10-22-2016, 12:26 PM   #38
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Congratulations! We paid off our debt 6 years ago and I've never regretted it. We then took that the house payment amount and started putting it into our investment account and it's been rocketing ever since.
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Old 10-22-2016, 12:50 PM   #39
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Sorry, but this just is not true. You can't say "always".

For me, it is a good feeling to be borrowing money at a very low rate, taking a tax deduction for it, and keeping that money invested. I would not have felt good about paying it off, and losing those market returns.
I agree with your point, I should have been a bit more exact in my language used. I meant if feels good emotionally to get rid of a debt obligation. Not whether it is always the pure financial best choice. That emotion of eliminating the debt provides a good feeling, the value of that is up to each person. Call it the sleep well factor as mentioned.

FWIW, I have a low interest rate mortgage and no plans to pay it off while still working. Taking the tax deduction help and keep my funds invested to generate more return than the cost of the interest. Whether to pay it off once no longer working is not decided yet. There are many variables in the decision and it is not a pure financial one.
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Old 10-22-2016, 03:19 PM   #40
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Thanks everyone.

I consider myself a Main Street Joe Schmoe. The intent of my post is to motivate those like me to "stay the course." If I can't offer wise financial wisdom, I'd like to be at least a cheerleader for the team.

I hope to share my next FIRE milestone in the near future!

Cheers.
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