You need to get a payment breakdown.
House interest is not calculated the same as a cd or savings account. As for tax write off the IRS now gives a standard deduction of 27,000 for a married couple filing jointly so that loan isn't helping you at all. Get the break down from the bank. See how much interest you will be paying. Then see how much the money will earn over 6 years. Only way to see if you really are saving / earning anything...

Also if that money is in the stock market it ALL could be gone before you get the chance to "cash out" UNLESS you are staring at the ticket 24 -7

Bingo.

Great job!

For those interested you can get online or your bank can print you an ammortization schedule for your loan or get the book and you can do multiple years, amounts and rates. It will show you how much more advantagious it is to pay down early in the loan. You can also compare say 10, 15,20 or more years and see what works best for you.
I chose not to pay ahead after the first 5 years on our 20 year loan. I put the extra money into investments be they securities, cash, IRA etc. I wanted at least 30 years of investment before retirement. I actually had 35 years. We also priced a newer and larger home in the mid 90s and chose not to sell and buy that and invested that difference into our investments as well. Getting out of debt is good but not at the expense not investing, especially when employers match up to levels like 4-6%. Since we paid off our mortgage we have taken out 3 home equity loans with 3 year paybacks instead of pulling funds out of our investments and I am glad we did that as well.
If time is worth money to a bnak it is to you as well.
Bryce

I know what you mean, it is a total relief to know you own your home free and clear. We went out and celebrated for supper when we paid off our loan. I even remember what I had to eat, walleye filet and asparagus spears. My wife had an Italian spaghetti dish of some kind.

Bought my house in 1988 payment with 9 percent interest was 650 a month,been paid off gor 20 years.Now taxes and ensurance are 530 a month.

You can cut down the length of time you pay a mortgage by getting an accellerated payment plan.Pay every 2 weeks instead of once a month.By doing that my 15 year mortgage was paid off in 11 years,
Also its a good idea to get mortgage insurance if you are working and have a family.
If you get hurt at work and have to go on workers comp or get sick and have to go on sick benefits your payments are covered.
And dont get a variable rate mortgage nowadays get one locked in.

Not to be a downer, but try not paying your property taxes for a few years. You will find out who really owns your property!

Boco the mortgage insurance is for the bank not you ! Just ask my neighbor that lost his home and lives in an apartment now. It’s a scam. He found out the bank gets the money but the person doesn’t get credit the payment. To cover for your scenario one needs accident and injury short term disability insurance. When I lost my thumbs d was off 5 weeks my policy paid my wages just like I was working. It wasn’t Aflac. Mine was thru American fidelity

Been there and done that Along with the if anything happens to me or both of us We both get laid of from long term jobs when the 2008 /20009 Too big to fail bank crisis happened We had paid off our home just a couple pf years earlier and had begun to build a saving account Well it was impossible to even fill out a jo application for more than a year With no mortgage and some money in the bank and an adjustment in our spending we had no problem paying bills and expenses until the job market opened up Not having to make house payments saved the day .

You are dead right about that You only get to rent your paid for home on a yearly basis And if you make any improvements the rent goes up

Same here. Great feeling. Congrats

Also have them schedule the payments principal first instead of interest first. Make a huge difference and most don’t know about it

Mine worked fine,i had a couple accidents on the railroad during the time and my mortgage insurance made the payments.
Another fellow I worked with had the same plan and he doubled up his mortgage payments for 3 months before having a "back injury".
His double payments were made and he was off work for near a year.When he went back to work he made 3 more double payments then went back to the lower payments.
If I remember correctly it was thru Manulife.

Congrats to you, I paid my off last year after going through a change to reduce it to a fifteen year which we had already paid 5 years on, it's a great feeling to see your funds now going to savings and other things one can now afford to do.

Just don't make the mistake of getting another loan on the paid of home and start all over again, like so many do a year or so afterwards, I feel that's the worst thing one can do now in this time and age, many years ago maybe, but not now !

I would agree with the home insurance for other worried about paying for the home, although tough to get if you are already making a high payment, it's probably better to be late than spend that funding on insurance unless you feel the real necessity of doing so, most lenders feel now that is funding you could use to pay the home billing !

I also agree with the now your credit rating is in the dumpster, it's almost impossible to get any type of larger loan as your home paying is your major credit establishment. Banks if they don't see any history they are real scared about loaning anything, unless you put that home or ground up for collateral. Kinda crazy they ask for work time but then turn around and don't use it for recording !!

Well done. I had a 15 year loan on the house, and paid it off in seven years and a couple months. Every time I got a raise in pay I upped the amount hat went on the principal. My extra money was more than the payment in the end. But it was well worth it.

Good grief, some people would complain if they got a free $100 and it was in $20's

I’d like to pay mine off but my loan rate is 1.875% and I can put my spare money to better use. Should be paid off in about 5-6 years. I do pay an extra $4-500 per month on my note.

My son in law has a home loan at 2.9% and won’t make extra payments because it’s “free money” as he states. I ran his loan on Bankrate.com to see his payments are $900 principal, $900 interest. He could make 10 payment's with his $9,000 bonus check and save $9,000 in interest payments he’d be sending to the bank! It’s not free money. Saving $9,000 in one year is better than the stock market!

Even if you make payment for only five years to invest in the market, you will still owe the bank almost all of the loan you took out.

One of the reasons housing supply is so short is that many home owners refinanced prior to higher rates and won't sell because they will have to pay higher rates.

Bryce