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Paying off home loan ? #7592529
05/27/22 01:29 PM
05/27/22 01:29 PM
Joined: Jan 2012
Posts: 1,418
Warren co Mo
H
hrdtoflw Offline OP
trapper
hrdtoflw  Offline OP
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H

Joined: Jan 2012
Posts: 1,418
Warren co Mo
I want to pay off my home 10 yrs early. The more I talk to people, the more confused I become.
Some say do it, and others say that a lien on your property can be useful if some type of lawsuit would happen.
Owing money on a loan, or anything else, seems to me to be foolish.
Those of you that have paid off your home early, are there any regrets?


If your mind draws a blank, turn off the sound, because ya can't learn a thing if you're doin all the talkin
Re: Paying off home loan ? [Re: hrdtoflw] #7592532
05/27/22 01:34 PM
05/27/22 01:34 PM
Joined: Mar 2012
Posts: 3,331
Nevadafornia
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Lazarus Offline
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Lazarus  Offline
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Joined: Mar 2012
Posts: 3,331
Nevadafornia
We paid off our home about 10 years ago and have no regrets. The peace of mind alone is well worth it.

If you are worried about protecting your home from creditors, you should talk to an experienced lawyer. Your state only allows for a $15,000 homestead exemption so it would be a worthwhile discussion. An attorney may advise you to transfer your home to an LLC or take similar measures now, before a creditor comes along.


For SILVER VINE and the latest in visual attractors:
www.wyldwingsproductions.com
Re: Paying off home loan ? [Re: hrdtoflw] #7592538
05/27/22 01:38 PM
05/27/22 01:38 PM
Joined: Jan 2012
Posts: 1,418
Warren co Mo
H
hrdtoflw Offline OP
trapper
hrdtoflw  Offline OP
trapper
H

Joined: Jan 2012
Posts: 1,418
Warren co Mo
No creditors after me,


If your mind draws a blank, turn off the sound, because ya can't learn a thing if you're doin all the talkin
Re: Paying off home loan ? [Re: hrdtoflw] #7592543
05/27/22 01:43 PM
05/27/22 01:43 PM
Joined: Oct 2008
Posts: 268
KY
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learch Offline
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learch  Offline
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L

Joined: Oct 2008
Posts: 268
KY
I sleep good at night.

Re: Paying off home loan ? [Re: hrdtoflw] #7592545
05/27/22 01:47 PM
05/27/22 01:47 PM
Joined: Sep 2012
Posts: 729
Perry, NY
D
Dana I Offline
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Dana I  Offline
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Joined: Sep 2012
Posts: 729
Perry, NY
It all depends.

Do you have the cash to pay it off or are you talking about a little extra on each payment
What is your interest rate
Are you able to write off your interest on your taxes
Is your plan for retirement on track
Do you have kids that will be going to college in the future
What other opportunities do you have available for the money

Often times you are money ahead by doing something else with the money and keeping the mortgage. For example If you are paying 3% on the mortgage but need to beef up retirement accounts you are usually better off doing that. Also right now I bonds are paying 9.62%. It would be hard to make the case that paying off the mortgage is a better use of the money than getting that kind of return.

On the other hand I am sure that the piece of mind knowing that your home is paid for can be a great thing for many people.

Re: Paying off home loan ? [Re: hrdtoflw] #7592550
05/27/22 01:49 PM
05/27/22 01:49 PM
Joined: Feb 2014
Posts: 9,707
Ky
J
jbyrd63 Offline
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jbyrd63  Offline
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Joined: Feb 2014
Posts: 9,707
Ky
look at the savings from interest you don't pay. One good Ideal is get you a HELOC . Home equity line of credit. You don't have to use it and it's like a rainy day check book. Also it keeps your credit rating up and active incase you need it . We paid ours of in 15 years . Saved us a little over 45,000 in interest payments.

Re: Paying off home loan ? [Re: hrdtoflw] #7592556
05/27/22 01:56 PM
05/27/22 01:56 PM
Joined: Jan 2012
Posts: 1,418
Warren co Mo
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hrdtoflw Offline OP
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hrdtoflw  Offline OP
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Joined: Jan 2012
Posts: 1,418
Warren co Mo
I have the money to pay it off now. We have been paying extra on the payments for the last few years.


If your mind draws a blank, turn off the sound, because ya can't learn a thing if you're doin all the talkin
Re: Paying off home loan ? [Re: Dana I] #7592560
05/27/22 01:59 PM
05/27/22 01:59 PM
Joined: Mar 2007
Posts: 33,416
McGrath, AK
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white17 Offline

"General (Mr.Sunshine) Washington"
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"General (Mr.Sunshine) Washington"
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Joined: Mar 2007
Posts: 33,416
McGrath, AK
Originally Posted by Dana I
It all depends.

Do you have the cash to pay it off or are you talking about a little extra on each payment
What is your interest rate
Are you able to write off your interest on your taxes
Is your plan for retirement on track
Do you have kids that will be going to college in the future
What other opportunities do you have available for the money

Often times you are money ahead by doing something else with the money and keeping the mortgage. For example If you are paying 3% on the mortgage but need to beef up retirement accounts you are usually better off doing that. Also right now I bonds are paying 9.62%. It would be hard to make the case that paying off the mortgage is a better use of the money than getting that kind of return.

On the other hand I am sure that the piece of mind knowing that your home is paid for can be a great thing for many people.


X 10


Mean As Nails
Re: Paying off home loan ? [Re: hrdtoflw] #7592562
05/27/22 02:02 PM
05/27/22 02:02 PM
Joined: Dec 2006
Posts: 9,997
Central Pennsylvania
Nittany Lion Offline
Don't call me Mister, Mister
Nittany Lion  Offline
Don't call me Mister, Mister

Joined: Dec 2006
Posts: 9,997
Central Pennsylvania
I would pay it off, it is a great feeling to be debt free.


I got myself a seniors' GPS.
Not only does it tell me how to get to my destination,
it tells me why I wanted to go there.
Re: Paying off home loan ? [Re: hrdtoflw] #7592565
05/27/22 02:06 PM
05/27/22 02:06 PM
Joined: Apr 2012
Posts: 1,543
new york
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mike mason Offline
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Joined: Apr 2012
Posts: 1,543
new york
Pay the mortgage off early. I put every extra cent on principle every month sometimes it was only $50 but watch the total drop. If worried about liability get an umbrella liability policy, probably one month's worth one interest for the premium.

Re: Paying off home loan ? [Re: hrdtoflw] #7592568
05/27/22 02:11 PM
05/27/22 02:11 PM
Joined: May 2018
Posts: 5,661
SW Georgia
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Wanna Be Offline
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Wanna Be  Offline
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Joined: May 2018
Posts: 5,661
SW Georgia
If you only owe 10 years then youíve already paid your interest. Your just paying the actual loan now.

Re: Paying off home loan ? [Re: hrdtoflw] #7592570
05/27/22 02:14 PM
05/27/22 02:14 PM
Joined: Jul 2019
Posts: 373
South Dakota
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Prn Offline
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Joined: Jul 2019
Posts: 373
South Dakota
No better feeling in the world. Pay it off as soon as you can. Hey if you dont like having a paid off home, you can always take out another mortgage on it.

Re: Paying off home loan ? [Re: hrdtoflw] #7592591
05/27/22 02:38 PM
05/27/22 02:38 PM
Joined: Mar 2012
Posts: 3,136
meadowview, Virginia
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EdP Offline
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EdP  Offline
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Posts: 3,136
meadowview, Virginia
We paid ours off in 2007. Interest rates were not nearly as low then as now, and inflation was much lower. That has all switched. With today's high inflation, the value of the money you are paying to the bank is less and less every month by a considerable margin. Your payment does not change, but it's value does. As I see it, in simple terms, if your rate is 3% and inflation runs 8% over the remaining term of the loan, you are 5% ahead every year by NOT paying off early.

Re: Paying off home loan ? [Re: Prn] #7592592
05/27/22 02:39 PM
05/27/22 02:39 PM
Joined: Dec 2006
Posts: 9,670
East-Central Wisconsin
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bblwi Offline
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Joined: Dec 2006
Posts: 9,670
East-Central Wisconsin
I would not worry too much about legal issues of paying off early. To me the issue is and was do I have places to put that disposable cash that will earn me a better return or more asset gain than paying off a mortgage early. The time value of money shows that the earlier one invests the more growth one gets. Staving off investing or increasing investments for 10 years so one can reduce debt may be more costlly then the gain in being debt free.

In todays tight home real estate market, many of the buyers are bringing cash and lots of cash to buy homes and most did not make that money by prepaying on their home loans. The last 30 years in the market was very good and many are using those funds now in a down market to invest in housing.

Bryce

Re: Paying off home loan ? [Re: hrdtoflw] #7592593
05/27/22 02:40 PM
05/27/22 02:40 PM
Joined: Dec 2006
Posts: 5,956
Three Lakes,WI 70
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corky Offline
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Three Lakes,WI 70
Mine has been paid off for years. It's a great feeling to have that piece of mind. From a strict financial point of view it may not have been smart but other considerations made it an easy decision. In my younger years I heavily leveraged investment property and stocks but those are different ballgames. In my case it worked out.

Re: Paying off home loan ? [Re: hrdtoflw] #7592596
05/27/22 02:47 PM
05/27/22 02:47 PM
Joined: Jan 2007
Posts: 2,553
NY
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Rat_Pack Offline
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Posts: 2,553
NY
Pay off any other higher interest loans first, then pay off the house. Save or invest the same amount each month as your old mortgage payment

Re: Paying off home loan ? [Re: Wanna Be] #7592601
05/27/22 02:54 PM
05/27/22 02:54 PM
Joined: Jan 2012
Posts: 1,418
Warren co Mo
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hrdtoflw Offline OP
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hrdtoflw  Offline OP
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H

Joined: Jan 2012
Posts: 1,418
Warren co Mo
Actually, there is still interest , but early on was where the most is paid. I wish I could have paid more toward the principal early on, but that wasnít in the cards. I am thinking Iíll just pay it off. I am looking to build a 40í x 60í shop. I could also do that with cash if I want, or get a small partial loan!


If your mind draws a blank, turn off the sound, because ya can't learn a thing if you're doin all the talkin
Re: Paying off home loan ? [Re: hrdtoflw] #7592609
05/27/22 03:03 PM
05/27/22 03:03 PM
Joined: Feb 2008
Posts: 354
TN
Oreamnos Offline
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Oreamnos  Offline
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Joined: Feb 2008
Posts: 354
TN
Dana I and EdP hit the nail on the head with their advice. Note that everyone else who said they paid their mortgage off early talked about the "feeling". It's an emotional decision. Which is totally fine. I'd love to pay my house off. I can't afford to spend money that emotionally right now. I need to be pouring money into retirement investments. My mortgage is around 3.5%. Inflation is 8% currently. For the time being I'll let inflation erode away the weight of that debt and invest in things that bring more than 3.5% returns. One day I hope to have enough invested to buy freedom and retire and then I'll pay that mortgage off! I just know that's an emotional decision, not sound financial decision making. And that's okay if you're in the position to do it!

Re: Paying off home loan ? [Re: hrdtoflw] #7592613
05/27/22 03:09 PM
05/27/22 03:09 PM
Joined: Mar 2010
Posts: 3,786
Oklahoma
Blaine County Offline
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Joined: Mar 2010
Posts: 3,786
Oklahoma
I don't like owing anything and I don't like being owed anything.

Pay it off if you have the ability!


MOLON LABE
Re: Paying off home loan ? [Re: hrdtoflw] #7592614
05/27/22 03:09 PM
05/27/22 03:09 PM
Joined: Aug 2011
Posts: 36,666
james bay frontierOnt.
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Boco Online content
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Boco  Online Content
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Joined: Aug 2011
Posts: 36,666
james bay frontierOnt.
The sooner you pay it off the better-you will have more money in your pocket.
Anyone getting a mortgage should get what is called an accellerated mortgage-pay every 2 weeks instead of once a month.Also an allowance to double up payments from time to time with no penalty.Mortgage insurance is also good to get,in my opinion.it is cheap and your payments are covered if you have to go off work on workers comp or sick benefits.
My home mortgage was a 25 year mortgage and because of it being acellerated I paid it off in 14 years.

Last edited by Boco; 05/27/22 03:12 PM.

Forget that fear of gravity-get a little savagery in your life.
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