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Re: Paying off home loan ? [Re: hrdtoflw] #7593200
05/28/22 08:34 AM
05/28/22 08:34 AM
Joined: Feb 2020
Posts: 4,616
Indiana
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Providence Farm Online content
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Providence Farm  Online Content
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Joined: Feb 2020
Posts: 4,616
Indiana
I have a loan in my first mortgage. Got the loan young and was just happy to get it. It was a 30 year term I'm 20 years into it. It was as 7.% I would have re financed it for a lower rate but my credit went into toilet after all the medical bills from the wreck where the guy ran a red light and killed my son. I was mad at the banks decided not to worry about fixing my credit. If I don't have cash I don't need it. Did that for 10 years.

Looked int refinancing last year since I took a year and rebuilt my credit back up just under 800. I wanted to cut the remaining 10 years to 5. Well they didn't want to go under 15 years adding time not reducing it. They offered other loan options but the fees are up most of the interest savings and it was not worth th hassle. I had the Cas to pay it off 2 time and did not and regret it. Currently my inlawa are renting it and paying the payment. I don't make any money but none is going out. I did put a few hundred a month extra on principle when th loan was. New before it was sold and I could pay at the local bank.
I'm getting ready to start adding extra to it again and when it's paid off it still be an income producing asset with value I can sale after they pass.

I bought th farm cash no regrets. Sure with th low rates and the market preforming like it did the last 10 years I would have been ahead way ahead to hav got a loan and let that cash grow at a much higher rare than the interest I would pay. But my credit was not fixed when I bought the farm so I paid cash.

There is freedom and security in both having Cash making money for you and owning your place free and clear. Both would be nice to have but I could only have one. I chose paying thing off and do not regret it.

Re: Paying off home loan ? [Re: hrdtoflw] #7593258
05/28/22 09:47 AM
05/28/22 09:47 AM
Joined: Aug 2010
Posts: 8,863
Asheville, NC
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charles Offline
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charles  Offline
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Joined: Aug 2010
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Asheville, NC
I refinanced last year into a 10-year fixed rate of 1.875%. We pay about 50% more than our scheduled payment every month. Plan to move again in about two years. Sure wish I could take this loan with me. Maybe I can rent the current home to keep the low rate. It is the only debt we carry.

Re: Paying off home loan ? [Re: hrdtoflw] #7593269
05/28/22 10:00 AM
05/28/22 10:00 AM
Joined: Nov 2012
Posts: 3,554
Frazee, MN
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backroadsarcher Offline
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Frazee, MN
Pay it off. Interest is low now but why pay the extra money if you don't have to.

Re: Paying off home loan ? [Re: hrdtoflw] #7593289
05/28/22 10:41 AM
05/28/22 10:41 AM
Joined: Jan 2014
Posts: 368
Western pa
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frank1969 Offline
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Posts: 368
Western pa
Hear is what I did I payed it of fast then to this day I make the same monthly payment to a separate account
I do the same with trucks iget the monthly payment pay it of at dealership and make that payment to my self to for when I need a new one
It's like this u make payments and get used to it so y not keep making them to yourself that is how I do it and still put money in savings monthly

Re: Paying off home loan ? [Re: charles] #7593292
05/28/22 10:54 AM
05/28/22 10:54 AM
Joined: Feb 2014
Posts: 9,950
Ky
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jbyrd63 Offline
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Joined: Feb 2014
Posts: 9,950
Ky
Originally Posted by charles
I refinanced last year into a 10-year fixed rate of 1.875%. We pay about 50% more than our scheduled payment every month. Plan to move again in about two years. Sure wish I could take this loan with me. Maybe I can rent the current home to keep the low rate. It is the only debt we carry.

If your not coming back just sell it before housing crash But do whatís best for you !

Re: Paying off home loan ? [Re: hrdtoflw] #7593298
05/28/22 11:14 AM
05/28/22 11:14 AM
Joined: Feb 2020
Posts: 253
Sandpoint Idaho
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cbat Offline
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Sandpoint Idaho
I am 56 and have not had a house payment for 10 years. Pay it off if you can. You can ride out a pretty bad storm if everything is paid.
But you have to maintain your credit rating. Lots of things based off your CR such as your insurance.


The real Wally
Re: Paying off home loan ? [Re: cbat] #7593330
05/28/22 12:37 PM
05/28/22 12:37 PM
Joined: Feb 2014
Posts: 9,950
Ky
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jbyrd63 Offline
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jbyrd63  Offline
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Ky
Originally Posted by cbat
I am 56 and have not had a house payment for 10 years. Pay it off if you can. You can ride out a pretty bad storm if everything is paid.
But you have to maintain your credit rating. Lots of things based off your CR such as your insurance.

Exactly Cbat . That's why I suggested a HELOC (home equity line of credit. It shows up on your credit report but you aren't paying anything if you don't use it . Some banks charge 20 bucks a year to keep it active depending on what you have in other accounts.

Re: Paying off home loan ? [Re: hrdtoflw] #7593378
05/28/22 02:05 PM
05/28/22 02:05 PM
Joined: Dec 2006
Posts: 9,807
East-Central Wisconsin
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bblwi Offline
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East-Central Wisconsin
If you don't like debt, pay it off or save until you have the cash. Investing over the long haul has been a proven way to gain assets. For those that lost their home in 2008 those with the least cash in them came out the best as they could file and start over in life. The system has been created to figure out how to manage money and cash is becoming less a part of that every decade.

Bryce

Re: Paying off home loan ? [Re: hrdtoflw] #7593434
05/28/22 03:24 PM
05/28/22 03:24 PM
Joined: Sep 2013
Posts: 10,100
Northeast Oklahoma
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Mike in A-town Offline
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Posts: 10,100
Northeast Oklahoma
We paid our home off shortly before the "pandemic." And I lived in a state that didn't go jackboot and force people to stay home...

But for folks still having to make payments and living in a dictatorship... It must have been a nightmare.

Point is, with the current state of affairs it might be a good idea to own your place free and clear.

Mike


One man with a gun may control 100 others who have none.

Vladimir Lenin
Re: Paying off home loan ? [Re: hrdtoflw] #7593475
05/28/22 05:03 PM
05/28/22 05:03 PM
Joined: Jan 2012
Posts: 1,418
Warren co Mo
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hrdtoflw Offline OP
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Warren co Mo
Thanks to all of you for the advice. I am going to pay it off, then save save save.


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] #7593515
05/28/22 06:20 PM
05/28/22 06:20 PM
Joined: May 2010
Posts: 9,050
mn north of blakely
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Steven 49er Offline
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mn north of blakely


Originally Posted by jbyrd63
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


High fuel wasn't the trigger in 08.


How's that for an investment? Not all that good unless you didn't pay any RE taxes, insurance and upkeep. Looking at it from a strictly investment standpoint, you would have been far better off in an IRA in an IRA or incoming producing framland. From a strictly investment viewpoint BBW is correct. It's math pure and simple. No one can guarantee 4 percent but here is something to think about. If you have a loan for 4 percent today and inflation is 8 percent you are making 4 percent profit on that loan as long as inflation is 8 percent. I know it's hard to grasp yet simple math.

harttoflow, what to do is a personal decision. There is something to be said about owning your home free and clear and the sense of stability that comes with it. My recommendation is to take into consideration several factors and do what you think is best for your tolerance to risk.

One thing that was mentioned by Dana is if you pay it off and then have to borrow to build the shop, pay for the shop in cash and keep making the home payments. As he said your old loan will be at a lower interest than the new one will be.

Good luck to you.


"Inflation is always and everywhere a monetary phenomenon". Milton Friedman.
Re: Paying off home loan ? [Re: hrdtoflw] #7593516
05/28/22 06:25 PM
05/28/22 06:25 PM
Joined: Dec 2010
Posts: 1,481
Wisconsin
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Green Bay Offline
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Wisconsin
I think that is a smart move.

Re: Paying off home loan ? [Re: hrdtoflw] #7593529
05/28/22 06:47 PM
05/28/22 06:47 PM
Joined: Nov 2012
Posts: 655
midland, michigan
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midlander Offline
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midland, michigan
Originally Posted by hrdtoflw
Thanks to all of you for the advice. I am going to pay it off, then save save save.


Good decision, you wont be sorry

Re: Paying off home loan ? [Re: hrdtoflw] #7593535
05/28/22 06:58 PM
05/28/22 06:58 PM
Joined: Apr 2017
Posts: 2,458
TN/OH
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RM trapper Offline
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TN/OH
I just turned 40 Wednesday and I have 5 years left on mortgage, and I can't wait to pay it off. I bought a second home in Ohio 8 years ago with cash that I could have put on the loan but don't regret it. I am self employed and don't have a retirement so my wife has been putting 20% of her pay into a 401k for awhile. If I can just keep her from divorcing me later in life hopefully I should be okay. I say pay it off

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