Mortgage Fatigue- How Long Did it Take You To Pay Off Your Mortgage.

[Anonymous]

Why did I click on this thread?

[Anonymous]

30 year mortgage. Paid it off in 7 years. Several large bonuses were involved.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have been in our house 20 years, so would be 10 years away from paying off our mortgage....

... which we had gotten as a 10-year adjustable at 8%. It would have been insane to not ever refinance, just so we could have been feeling like we were "paying off" the house. We've refinanced a number of times, and are now down to a 3.625% 30yr loan. And our house is now sellable for close to triple what we paid for it (and could probably rent it out for $1,200 more than our monthly payment). But we're not going anywhere. And we love the spending money we have from a small mortgage with a low interest rate.

In days of low low interest rates, paying off a mortgage is not always the end-all be-all.

You could still pay extra in principal. OP here- I've refinanced three times in 13 years with a 30 year mortgage and we are down to ~6-7 remaining years worse case because we paid down the loan (principal). Our 4.5% rate is considered high today but we couldn't "pay" for the refinancing costs anymore because our balance is too low. Each time we refinance, I reamortize our loan based on my estimate of when we will pay it off. IE- if I think we can pay off a 30 year loan in 15 (no penalty for early payment), I calculate the savings and if it more than offsets the cost refinancing costs I go for it. I use to think like you until I lost 1/2 of my 401k savings in 2008. For me paying off the loan represents financial security (less money needed in the emergency checking account which earns no interest). I agree though PP that when life is good, investing in the stock market would yield better long term returns.

Unless you took the money out of your 401k in 2008 you didn't "lose" it. My 401k dipped by about 40 percent in 2008 and it's now at about 120% of what it was prior to that drop.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We have been in our house 20 years, so would be 10 years away from paying off our mortgage....

... which we had gotten as a 10-year adjustable at 8%. It would have been insane to not ever refinance, just so we could have been feeling like we were "paying off" the house. We've refinanced a number of times, and are now down to a 3.625% 30yr loan. And our house is now sellable for close to triple what we paid for it (and could probably rent it out for $1,200 more than our monthly payment). But we're not going anywhere. And we love the spending money we have from a small mortgage with a low interest rate.

In days of low low interest rates, paying off a mortgage is not always the end-all be-all.

You could still pay extra in principal. OP here- I've refinanced three times in 13 years with a 30 year mortgage and we are down to ~6-7 remaining years worse case because we paid down the loan (principal). Our 4.5% rate is considered high today but we couldn't "pay" for the refinancing costs anymore because our balance is too low. Each time we refinance, I reamortize our loan based on my estimate of when we will pay it off. IE- if I think we can pay off a 30 year loan in 15 (no penalty for early payment), I calculate the savings and if it more than offsets the cost refinancing costs I go for it. I use to think like you until I lost 1/2 of my 401k savings in 2008. For me paying off the loan represents financial security (less money needed in the emergency checking account which earns no interest). I agree though PP that when life is good, investing in the stock market would yield better long term returns.

Unless you took the money out of your 401k in 2008 you didn't "lose" it. My 401k dipped by about 40 percent in 2008 and it's now at about 120% of what it was prior to that drop.

True it was an unrealized loss but if we had a job loss or health issue and we would have pulled out it would have been ugly. Made another payment below 65k today.

[Anonymous]

You pay your mortgage on the 19th of the previous month?

[Anonymous]

We got a 30 yr around 1995 or 1996, we refinanced to 20 years a couple years in, then to 15 years around 2002 so mine will be paid off in 2017, looking forward to it!

[Anonymous]

75 years once dead

[Anonymous]

Anonymous wrote:You pay your mortgage on the 19th of the previous month?

Not the PP you're asking, but when we had a mortgage, I always paid it a month ahead. Helped in a few cases where cash was tight for a month and when we travelled and I completely forgot about it.

[Anonymous]

Bought in 2005 with a 30 year, refinanced to a 15 year in 2011. We pay a small amount extra each month, so will probably pay it off in 14 years, or 20 years total. Unless we move, in which case we'll probably end up with a new 20 or 30 year loan.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You pay your mortgage on the 19th of the previous month?

Not the PP you're asking, but when we had a mortgage, I always paid it a month ahead. Helped in a few cases where cash was tight for a month and when we travelled and I completely forgot about it.

Yep that is why we do it. Crazy busy lives. I was late only once while on maternity leave with #2. Ten days late just because I forgot.

[Anonymous]

We just have our on autopay from the bank.

[Anonymous]

we're 18 months into a 15 yr mortgage, no extra payments to principal yet but I'm planning to start that in 2014. Looking for motivation!!!

Our first home, we paid off in 3 years. We bought before the bubble and our mortgage payment was only 12% of our gross annual income. it was easy!

[Anonymous]

Anonymous wrote:Most mortgages are 30 years and most people take 30 years to pay them. But good humble brag OP.

+1