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We decided to pay off the mortgage on the house. Even though the rate was low at 2.625% on a 15 year loan, we paid the loan off 9 years early. Keep the congrats to Mrs. PSU. It wasn't really my idea since I would have preferred to keep it to the original payoff date since the interest rate was so low.

PSU
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Huzzah. Congrats. FREEEEDOM!!!


Did the past year's tax law changes play into your decision at all?
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Did the past year's tax law changes play into your decision at all?

No. A large increase in income led into the decision. Also, my kids finished college so there isn't any more tuition to be paid.

PSU
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Congrats! It really is nice to have one less thing to juggle. We paid ours off in December mostly because the rate was set to jump from 2.49% to 4.5% and we had the money allocated in the calculations that got me to retirement.

I admit that it does feel good to have that done.
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"Keep the congrats to Mrs. PSU."

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Congrats to you for the excellent choice in marriage.

Howie52
Lord knows what this thread is liable to evolve into.
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We paid ours off earlier in the year. DH initially wanted to throw all extra money at the mortgage, I talked him into allowing me to use 25% for stocks and the rest for the mortgage. I eventually worked him up to reversing the ratio and we still paid off a 30 yr in under 7 yrs.

I understand the math, but marriage is a partnership and we negotiate important things. He is incredibly debt-adverse. And I have to admit, the feeling of knowing it is ours is pretty cool.

Hopefully this will be our final home until we decide to downsize.

Kristi
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I've got two paid-off homes and two with mortgages. I've been struggling with the idea of paying off one or both of the two mortgages. I'm naturally inclined towards the "don't owe anything to anyone" mindset, but I've been getting more ROI on my stash than the mortgage interest takes away. It's really troubling me.

Another contributing factor is that I've got an insurance pay-out check for a new roof, and I've got to get it endorsed by the mortgage holder. In order to get that, they want me to send them all kinds of documentation about the roofing contractor, the scope of work, etc. I've been thinking it would just be easier to pay off that mortgage and have the insurance company reissue the check in my name only.

First world problems, huh?

xtn
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My husband suggested the same thing back in 2011 when a lot of his miners shot up. He asked what I thought about selling half of it and paying off everything. I agreed and so we paid off our home, two vacation rentals and anything else where we owed money. One of the best decisions we made as the miners went down after that in a couple of weeks.
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I've got two paid-off homes and two with mortgages. I've been struggling with the idea of paying off one or both of the two mortgages. I'm naturally inclined towards the "don't owe anything to anyone" mindset, but I've been getting more ROI on my stash than the mortgage interest takes away. It's really troubling me.

I've never had the "don't owe anything to anyone" mindset but my wife has it strongly. Since all our retirement savings goals are being met, we decided to pay off the mortgage because it was more important to her to be debt-free than it was for me to squeeze a few more dollars into retirement savings.

Another contributing factor is that I've got an insurance pay-out check for a new roof, and I've got to get it endorsed by the mortgage holder. In order to get that, they want me to send them all kinds of documentation about the roofing contractor, the scope of work, etc. I've been thinking it would just be easier to pay off that mortgage and have the insurance company reissue the check in my name only.

You probably saw my posts on my recent insurance claim for a new roof. I had to go through the same send the check and documentation to the mortgage company so I could get back a check in my name only. My wife and I had been discussing when in the next few months to pay off the mortgage. When I received a call from the mortgage company on a Thursday that now an inspector had to come out and inspect the repairs inside and outside the home, I told them I was very busy at work and that they could call the following week to schedule a time. Then that night, I transferred the necessary funds to my checking account. On Friday the next day, I went in my credit union and wired the money to the mortgage company that day.

This brings up a sore spot I had with the mortgage company. Even though the first representative told me there no fees involved, when it got my payoff amount in an email, there was a $10 fee for them computing the payoff amount. I called and no matter what I said, they wouldn't waive the fee. To make sure they were completely paid off, I sent an extra $0.05 to them. Now that amount sits in an escrow account down there. I'm going to call weekly until I see a $0.05 check arrive in the mail. My hope is that they spend much more than the $10 fee they charged me to take care of this matter.

PSU
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<<This brings up a sore spot I had with the mortgage company. Even though the first representative told me there no fees involved, when it got my payoff amount in an email, there was a $10 fee for them computing the payoff amount. I called and no matter what I said, they wouldn't waive the fee. To make sure they were completely paid off, I sent an extra $0.05 to them. Now that amount sits in an escrow account down there. I'm going to call weekly until I see a $0.05 check arrive in the mail. My hope is that they spend much more than the $10 fee they charged me to take care of this matter.

PSU>>


Heh, heh! Apparently your loving wife want to save you from this kind of stress by paying off the mortgage.


I bought a house as a rental and paid cash for it. A few years later my tenant had a fire and I collected $30,000 dollars or so for the damages. The check came to me, and I decided on the repairs and how to make them.

Easy peasy!


Seattle Pioneer
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My hope is that they spend much more than the $10 fee they charged me to take care of this matter.


Nice move. I like that!

xtn
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love the cash flow. not to worry about outgoing. great! 5 more years be there too.
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"t wasn't really my idea since I would have preferred to keep it to the original payoff date since the interest rate was so low."

Congrats and I do agree with your logic.
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Keep the congrats to Mrs. PSU. It wasn't really my idea since I would have preferred to keep it to the original payoff date since the interest rate was so low.

I vote with Mrs. PSU. You've been passing up lots of dividends.

54 Elite Dividend Stocks With Unreal Track Records
https://money.usnews.com/investing/stock-market-news/slidesh...

25 Dividend Stocks You Can Buy and Hold Forever
https://www.kiplinger.com/slideshow/investing/T018-S001-25-b...

These 13 Stocks Have Raised Their Dividends for 50 Straight Years
https://www.fool.com/slideshow/these-13-stocks-have-raised-t...

There's a difference between saving money and making money!
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This brings up a sore spot I had with the mortgage company. Even though the first representative told me there no fees involved, when it got my payoff amount in an email, there was a $10 fee for them computing the payoff amount. I called and no matter what I said, they wouldn't waive the fee.

I know that this would never work, but when some entity screws me over like that, I fantasize about adding my own "special fees," like "final check writing fee" and "mailing it to you" fee.
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I vote with Mrs. PSU. You've been passing up lots of dividends.

I'm not a dividend stock investor.

There's a difference between saving money and making money!

There is a thing called a spreadsheet. It will show that investing extra money instead of extra payments on a mortgage will in the long run earn more money. It's all in the math. Paying off early is just a feel good thing.

PSU
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There is a thing called a spreadsheet.

Really? What is this thing, and how does it work?

;-)

-synchronicity
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Really? What is this thing, and how does it work?

I know some person around here that likes them a lot. One of these days I'd like to have a discussion not on this board with that person on retirement savings. Right now I'm too busy preparing to leave the country.

PSU
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I'm sure you have multiple ways of getting in touch with that person on the off-chance they might not be on TMF that often.

-synchronicity
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I'm sure you have multiple ways of getting in touch with that person on the off-chance they might not be on TMF that often.

Yeah but I'd need to tell others to put up a bat signal on Facebook.

PSU
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"Really? What is this thing, and how does it work?"

**********************************************************

Addition, subtraction - an occasional multiplication and division.
Business analysis tends to be simple - look up tables are about as
extensive as things get when you look at interest payments and such.

You can do almost anything if you put your mind to it - and go to the
library.
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"Paid off the house..."

One of these days. Maybe.


Meanwhile the last 4-5 years we have been adding extra saving over and above 401K savings(max'd with makeup contributions) to a separate stock account. I took a look today and the balance is approaching 1/2 of our principle.

=8-O yea team!

I'm still able to itemize so might as well let it run.
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Right now I'm too busy preparing to leave the country.

PSU

##### #####

So much 'baggage' that the feds are on your trail now?

*bill
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So much 'baggage' that the feds are on your trail now?

I'm busy stashing my money overseas.

PSU
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I vote with Mrs. PSU. You've been passing up lots of dividends.

I'm not a dividend stock investor.


Obviously! It's OK, I forgive you. ;-)

There's a difference between saving money and making money!

There is a thing called a spreadsheet. It will show that investing extra money instead of extra payments on a mortgage will in the long run earn more money. It's all in the math. Paying off early is just a feel good thing.


IIRC a certain someone on this board has argued for checking to see if the money will be better invested in paying interest or being paid dividends. I wonder where he went? ;-)
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