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Re: Paying off home loan ? [Re: hrdtoflw] #7592647
05/27/22 03:48 PM
05/27/22 03:48 PM
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Posts: 734
Perry, NY
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Dana I Offline
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Perry, NY
Originally Posted by hrdtoflw
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!


Paying off the loan is fine if you have plenty of money. But if you will then have to go get even a partial loan to put up your shop it is a bad idea. The interest rate on a new loan will be higher than you are currently paying unless you have a bad deal on your mortgage. Not to mention the fees that go along with the new loan and the hassle of going through the process of getting the new loan.

Re: Paying off home loan ? [Re: Dana I] #7592654
05/27/22 04:10 PM
05/27/22 04:10 PM
Joined: Jan 2012
Posts: 1,418
Warren co Mo
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hrdtoflw Offline OP
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Warren co Mo
I can pay cash for a shop, which is great.


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] #7592659
05/27/22 04:17 PM
05/27/22 04:17 PM
Joined: Sep 2012
Posts: 734
Perry, NY
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Perry, NY
That seems to make more sense to me than paying it off just to go back and borrow the money again.
Unless you could somehow work out a better deal than you currently have. Which in this environment is highly unlikely.

Re: Paying off home loan ? [Re: hrdtoflw] #7592661
05/27/22 04:30 PM
05/27/22 04:30 PM
Joined: Jun 2013
Posts: 86
Florida
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bjansma Offline
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Florida
to revisit the comments about creditors... when people are talking about not paying off your home in case of creditors they aren't talking about loans where payments are current. They are talking about getting sued, maybe a horrific car accident, something like that. If the judgment exceeds the insurance they can go after your other assets. Retirement accounts are protected from these sorts of things.


Bob Jansma
Re: Paying off home loan ? [Re: hrdtoflw] #7592665
05/27/22 04:34 PM
05/27/22 04:34 PM
Joined: May 2007
Posts: 2,383
Flint, Michigan
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Depending on your interest rate, Iíd invest the money and keep paying off the mortgage as others have said. A retirement Roth IRA or 401k is best.


Member MTPCA, FTA and NTA
Re: Paying off home loan ? [Re: bjansma] #7592891
05/27/22 08:42 PM
05/27/22 08:42 PM
Joined: Feb 2020
Posts: 4,574
Indiana
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Originally Posted by bjansma
to revisit the comments about creditors... when people are talking about not paying off your home in case of creditors they aren't talking about loans where payments are current. They are talking about getting sued, maybe a horrific car accident, something like that. If the judgment exceeds the insurance they can go after your other assets. Retirement accounts are protected from these sorts of things.



Thus is why my farm is in a trust. The trust owns it I don't look up assets or property search and it won't show my name . When I die my wife become controler of the true and no probate. If she is able deadvat that point the kids become c ontrolers of the trust. May have been better approaches or options but it's what I did after thinking I would have to go bankrupt on medical bills from a car wreck. The guy didn't have enough insurance.

I didn't have to go bankrupt but I learned a lesson. I don't want to be in that spot again. On paper I don't want to own anything worth anything.

Re: Paying off home loan ? [Re: hrdtoflw] #7592910
05/27/22 09:06 PM
05/27/22 09:06 PM
Joined: Nov 2007
Posts: 8,618
St. Cloud, MN
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Pay it off!


"The voice of reason!"
Re: Paying off home loan ? [Re: Oreamnos] #7593020
05/27/22 11:17 PM
05/27/22 11:17 PM
Joined: Nov 2012
Posts: 653
midland, michigan
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midland, michigan
Originally Posted by Oreamnos
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!


100% of foreclosures happen to homeowners with a mortgage....nothing emotional about that.

Pay your house off. Never, ever talked to a single person that payed their house off early that said they regretted it. Have talked with several that did not pay off early when they had the chance only to unexpectedly lose a job or sustain a serious health problem that forced them out of a job. Those are real risks and that is what the other folks never add into their equations. They like to use straight math, but never figure in risk.

Pay your house off.

Re: Paying off home loan ? [Re: Oreamnos] #7593049
05/28/22 12:08 AM
05/28/22 12:08 AM
Joined: Feb 2014
Posts: 9,921
Ky
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Ky
Originally Posted by Oreamnos
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!

What can you invest in that guarantee More than 3.5% ? If he pays it off NO monthly payment is guaranteed plus mortgages arenít compounded like interest paid to you . Pull up the loan and look at the amortization table itís sickening what a 90,000 loan at 4% ends up costing over 25-30 years

Last edited by jbyrd63; 05/28/22 12:12 AM.
Re: Paying off home loan ? [Re: hrdtoflw] #7593052
05/28/22 12:17 AM
05/28/22 12:17 AM
Joined: Feb 2014
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Ky
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[Linked Image]
Based on this going to cost you 134,280 bucks Up or down based on amount borrowed

Last edited by jbyrd63; 05/28/22 12:18 AM.
Re: Paying off home loan ? [Re: hrdtoflw] #7593056
05/28/22 12:26 AM
05/28/22 12:26 AM
Joined: Dec 2006
Posts: 9,782
East-Central Wisconsin
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East-Central Wisconsin
Pull up the loan and look at the amortization table itís sickening what a 90,000 loan at 4% ends up costing over 25-30 years

Which is why we chose to invest and be the earner of interest, gains and dividends. Amazing what a couple hundred per month adds up to in assets over 30 years. If lenders can make money at 4%, so can I.
Roughly you can take about half the rate paid over the length of the loan and multiply that by the principal amount. If one uses even 2.25% that is about $2100 per year or roughly 50-62K depending upon the length of the term.
Putting $200 away per month for 30 years is $72K with no return. At even 4% return that would well over 100K . Infact infation probably increases the equity in your home faster than prepaying debt if you invest even with average returns.
Bryce

Re: Paying off home loan ? [Re: hrdtoflw] #7593078
05/28/22 01:20 AM
05/28/22 01:20 AM
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james bay frontierOnt.
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If you invest in the stock market you likely own some mortgages.
Hope everyone keeps paying once the rates go up soon.


Forget that fear of gravity-get a little savagery in your life.
Re: Paying off home loan ? [Re: hrdtoflw] #7593089
05/28/22 05:08 AM
05/28/22 05:08 AM
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Posts: 1,480
Wisconsin
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I am in the pay it off group. As mentioned by others, pay off other debts first with high interest rates and save paying the mortgage off last. Once you have absolutely no debt you can really get serious about your other financial goals. Once your final debt is paid don't borrow any more money, ever, for anything.

Financial security is knowing that everything you have is yours and no matter what you will have a place to live.

Re: Paying off home loan ? [Re: hrdtoflw] #7593105
05/28/22 06:30 AM
05/28/22 06:30 AM
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PA
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When I moved in to my house one of my goals was to have it paid off by the time I 50 .It took some determination .It required me to not have or wait for some things I would have liked to have / My thought at 50 I was still young enough to have many years left to treat ourselves to the things we wanted . I ended up being about 6 months short of my goal Sounds good except the company I was working went out of business right before I made my last payment .So after 33 years there I was now unemployed .Good news bad news No house payment to make .But no income .I was able to find another job .But at a lower wage and greater travel time . After about 2 years there things got slow and I was unemployed again That was during the Too Big To Fail Bank Crisis. Jobs where hard to find at he time .So I was unemployed for a long time .Once I got another job after about 6 months there I had a serious medical issue. So if I had not had my house paid off it would have been very difficult to get through the paying the bills and making house payments also . My idea of having money to spend to enjoy some of the nicer things in life did not work like I was planning . But I still am glad I was done with not owning my home free from any mortgage payment

Re: Paying off home loan ? [Re: Green Bay] #7593108
05/28/22 06:37 AM
05/28/22 06:37 AM
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Northern lower Michigan
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Originally Posted by Green Bay
I am in the pay it off group. As mentioned by others, pay off other debts first with high interest rates and save paying the mortgage off last. Once you have absolutely no debt you can really get serious about your other financial goals. Once your final debt is paid don't borrow any more money, ever, for anything.

Financial security is knowing that everything you have is yours and no matter what you will have a place to live.

Add me to this group. other than taxes, utility bills, yearly medical copays, haven't had a debt in over 25+ years. I struggled with buying a Kubota tractor, loader backhoe this spring. Couldn't decide, pay cash or zero % interest loan. The tractor cash was making money where it was sitting.


your only allowed so many sunrises... I aim to see every one of them!
Re: Paying off home loan ? [Re: hrdtoflw] #7593128
05/28/22 07:15 AM
05/28/22 07:15 AM
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MN
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If you think you own your home free and clear, try not paying your property taxes every year.

Re: Paying off home loan ? [Re: hrdtoflw] #7593129
05/28/22 07:15 AM
05/28/22 07:15 AM
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Greene County,Virginia
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Pay the home loan off. That way you can focus on other things. I'm not a financial expert.


wanna be goat farmer.
Re: Paying off home loan ? [Re: walleye101] #7593170
05/28/22 08:03 AM
05/28/22 08:03 AM
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PA
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Originally Posted by walleye101
If you think you own your home free and clear, try not paying your property taxes every year.

I could not agree more All you do is rent the property you have paid off from the school district and any other government agency This country was established as a result of no taxation without representation .And it is supposed to be the government of the people for the people by the people .It has evolved into a government for the government of the government by the government

Re: Paying off home loan ? [Re: hrdtoflw] #7593196
05/28/22 08:33 AM
05/28/22 08:33 AM
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Friend, NE
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Always a great feeling not to be a slave to debt.


Sledge
Re: Paying off home loan ? [Re: hrdtoflw] #7593198
05/28/22 08:33 AM
05/28/22 08:33 AM
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Ky
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So bbw your saying instead of putting extra towards the principal to pay off early invest it somewhere? Thatís crazy ! You want to get a retuning you money howís this in 1996 we paid 84,000 fir our house interest was 7% ( no the world didnít end) Paid 150 per month extra until we refinance at 4% anyway paid the house off in 12 years Now our house was appraised for 315,000 Howís that for an investment Plus no longer have a 800 bucks a month house payment Instead of putting money some where you hope is going to get 4 percent return why not pay off a loan that YOU KNOW is costing you interest Any interest you pay is wasted money When the crash hits and itís coming those people that ran out a mortgage a paid for home and stuck it in a over inflated stock market or Bitcoin are going to be sorry 2008 all over again High fuel was the trigger then Now we have high everything

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