Mortgage free!

[aaronc879]

Not sure if it was the best financial decision but it's a done deal. I used most of my cash savings to pay off my mortgage(~$74K). The money was making .40% in a money market account and I didn't want to risk it in the stock market since 90% of my retirement money is already in stocks. I was paying around $200/mo on interest which is a lot from someone who spends less than $2000/mo on everything. Sure I may have been able to do better with the money in stocks but it sure feels good being completely debt free.

 

[EastWest Gal]

You did fine. In 2014 I calculated the interest tax deduction on the last 15 months left on our mortgage and knew it was not worth the trouble. Paid if off (only $25K) and slept easier at night. Still sleeping easier at night 7 years later.

Debt free is amazing.

 

[YakGrl]

Congratulations! What a great accomplishment! Celebrate your success!

 

[finnski1]

Not sure if it was the best financial decision but it's a done deal. I used most of my cash savings to pay off my mortgage(~$74K). The money was making .40% in a money market account and I didn't want to risk it in the stock market since 90% of my retirement money is already in stocks. I was paying around $200/mo on interest which is a lot from someone who spends less than $2000/mo on everything. Sure I may have been able to do better with the money in stocks but it sure feels good being completely debt free.

Sometimes emotional decisions outweigh perfect financial analysis. I have not had a mortgage for 15 years now. I've forgotten what it's like.
Since you already had a very high stock allocation percentage, I probably would have done the same!

 

[wmc1000]

Congratulations you did good!

 

[ProspectiveBum]

Dang, you beat me! Congrats!

 

[Calico]

Congratulations!!

I still remember how great it felt the day I paid off my mortgage in 2017. It provides such peace of mind (to me).

Enjoy your debt-free status!

 

[CardsFan]

Congrats. I think you did just fine. You traded money earning 0.4% against a mortgage at, just guessing, 3% to 4%. Now, the challenge is rebuild that cash account.

FWIW, If I were 90% equity with my retirement funds, I would not have bought equities with that cash either.

 

[aaronc879]

Congrats. I think you did just fine. You traded money earning 0.4% against a mortgage at, just guessing, 3% to 4%. Now, the challenge is rebuild that cash account.

FWIW, If I were 90% equity with my retirement funds, I would not have bought equities with that cash either.

Upon further review it appears i'm only at 83% equities. I'm still fine with my decision. The mortgage was 2.99%.

 

[CardsFan]

Upon further review it appears i'm only at 83% equities. I'm still fine with my decision. The mortgage was 2.99%.

Still a high equity allocation. Enjoy the piece of mind of no mortgage.

 

[ExFlyBoy5]

Congrats! Being mortgage free is one of the best financial decisions one can make...and mentally, it can be VERY liberating.

 

[Another Reader]

With your health issues and difficulty finding employment after your accident, I would have done exactly the same thing. Your house is no longer at risk if you lose a job. Wise move!

 

[Rocky mtn high]

Congrats!! For most people it truly is “I owe, I owe, so off to work I go”

 

[pacergal]

Congratulations, aaronc!
I am sure it feels nice not to have the mortgage payment every month.

 

[braumeister]

it sure feels good being completely debt free.

I completely agree with you and feel the same way. The best decision doesn't have to be the one that makes the most financial sense technically, but the one that lets you sleep well at night and have a feeling of satisfaction. Well done, and congratulations!

 

[teetee]

It may sound snarky but it is just common sense. Took you long enough to figure out it is not worth the risk to be in debt.

I do hope I will be brave enough like you are to put 90% of my AA in stocks when I retire. That is an honest opinion.

 

[Bamaman]

Not everyone in retirement has the cash flow to cash flow substantial mortgages. And it sure feels good to me to have two homes that are paid for.

My biggest expenses are utility bills, internet fees, automobile insurance, homeowners' insurance and an umbrella liability policy. I'm very thankful to be in the #49 lowest property tax state, however.

I always considered getting the house paid off prior to retirement to being one's "Ace in the Hole."

Congratulations to you in being able to payoff your mortgage. It sure is nice not to think about keeping up with the calendar and when to make such payments.

 

[Walt34]

Agree, it's a great feeling and just nice that maybe your biggest bill next month will be for groceries.

 

[REWahoo]

Agree, it's a great feeling...

Yes, it is!

 

[Time2]

Oh know, you didn't ??
OK, congratulations
Sounds right for cash setting at 0.4%.
I always advise people to keep it in the stock market rather than payoff a low % mortgage. But, also usually add, I paid cash for my house 27 years ago and I don't regret it now.

 

[tmm99]

Congrats, Aaron! A wise decision IMHO!

 

[CindyBlue]

Congratulations! We paid off our mortgage (about the same amount of $$$ that you did) last year and it felt great!!
We made a copy of the paid off papers and had champagne and a little burning-of-the-mortgage ceremony. What a wonderful feeling!
Celebrate! You deserve it!

 

[W2R]

Congratulations, Aaron!!! No more mortgage payments, no more rent either. You can just put that money aside for your future if you want to. It's a great feeling.

 

[Sunset]

Good thing to do, where else will you "get" 2.99% after taxes guaranteed.

 

[rodi]

Congratulations.

I remember the feeling well when I lump-summed the final payment of ~50k right before I retired. The cash flow works soooo much better without a mortgage.

You must be feeling great now!