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paid off mortgage yesterday
Old 10-21-2016, 08:45 AM   #1
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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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Old 10-21-2016, 08:49 AM   #2
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l Yay!
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Old 10-21-2016, 09:06 AM   #3
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One of the best feelings ever is to be debt free! Enjoy...
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Old 10-21-2016, 09:45 AM   #4
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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!)
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Old 10-21-2016, 09:47 AM   #5
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Congrats! That was a great feeling for us also.
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Old 10-21-2016, 09:56 AM   #6
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One of the best feelings ever is to be debt free! Enjoy...
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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Old 10-21-2016, 09:57 AM   #7
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Congratulations. We are just beginning to pursue the same goal, can't wait.
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Old 10-21-2016, 10:47 AM   #8
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Quote:
Originally Posted by are_we_there_yet? View Post
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.
Congratulations!!! That is a big accomplishment. It feels so good to make a plan, do what is necessary, and then watch that plan fall into place. In my experience, being truly, 100% debt free is an amazing, wonderful feeling that no amount of wishful thinking or rationalization can mimic. It's a happy day for you.
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Old 10-21-2016, 10:53 AM   #9
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Old 10-21-2016, 11:05 AM   #10
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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.
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.
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Old 10-21-2016, 11:14 AM   #11
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Best thing we ever did... Congratulations....
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Old 10-21-2016, 11:15 AM   #12
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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.
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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Old 10-21-2016, 11:33 AM   #13
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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?
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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Old 10-21-2016, 11:43 AM   #14
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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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Old 10-21-2016, 11:56 AM   #15
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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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Old 10-21-2016, 12:02 PM   #16
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Congratulations!

Now just remember to keep an eye out for the property tax obligations...
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Old 10-21-2016, 12:40 PM   #17
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Congratulations!

Now just remember to keep an eye out for the property tax obligations...
+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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Old 10-21-2016, 12:48 PM   #18
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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.
The joke around here is that you never really own your home, you're just renting it from the county tax office.
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Old 10-21-2016, 02:37 PM   #19
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Well done. I also greatly enjoyed paying off my mortgage. The added cash flow has been great.
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Old 10-21-2016, 02:49 PM   #20
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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.
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