Instead, you almost certainly made a clear plan, committed to it, and stuck to it over time. I am hoping if I ever move into a new home in the future that we can pay cash for it. If I ever had to pay the mortgage, I’d just get some money out of the 6% account, the point being I had the money so I had the security, plus I had another 3% growth beyond the security. That’s awesome to hear!!! I ultimately paid off my mortgage in exactly 9 years and saved $130,000 in unpaid interest. We are just skipping our after tax savings for now though we already have a decent 150kish in there earning some dividends…. What are your reasons to do so or not to do so? I have no debts . TX Although it makes more sense to invest it, I would rather clear the debt from my name :). Keep in mind, this was the early 2000s. Today, we have a guest post from a co-nominee for the Best New Personal Finance Blog at FinCon last year. Great job! Sounds like we have a similar mindset with debt I am so glad that I don’t have to worry about debt anymore and it’s one less thing to think about before I go to bed . We are currently on track to pay off our 30-year loan in 17 years… which puts a payoff date during our son’s Junior or Senior year of high school (and opening up cash flow for college). Sounds like real estate has treated you well over the years . The math actually becomes quite complicated. Paying off low interest rate debt is an emotional decision that for many is worth 100s of thousands of dollars. The payment ahead is ultimately a psychological question of your risk tolerance. That peace of mind is priceless!!! Plus, I had plans to make extra payments each month to pay it off more quickly. It took me about six months for it to truly sink in but getting rid of that mortgage was a game changer in my life and I felt the stress melt away . Before cutting a check for a mortgage loan balance, be sure to evaluate these factors to ensure you’re making the right decision for your circumstances. There is NO RED PILL! I have a feeling that the stock market will be correcting in the next couple of years. The interest payed over that time is $204,511 I am trying to aggressively pay down principal on our mortgage. The stock market was better over the last 10 years, but it won’t always be that way. I understand that some mortgage companies, for a fee, are willing to recast a mortgage that was being payed down aggressively but not fully paid off. Thanks. Many financial advisors promote investing money in the stock market instead of paying off your mortgage. 5.5 years total. There is very little benefit in a partially paid off mortgage. This is why I am still an avid proponent for paying off your mortgage early. (Another partner advised me that $4M was needed to retire, and I made this another goal.). Historically, the stock market has yielded greater returns over time compared to the historic lows of mortgage rates. I hope to join you in the debt free club in a year or so, about 5 years into my current mortgage. I’d choose between the stock market or real estate before I paid off a mortgage again. Pay off your mortgage early with these personal finance tips. I was lucky that all of my family lives in the area and I really didn’t have any desire to move anywhere else. Once we hit our goal we will consider maybe paying down the debt sooner. Have you ever thought about paying off your mortgage? Similarly if a person is in a volatile job industry then being debt free may be the right risk adjusted decision. At the time, the real estate market was on fire. That seems reasonable. It’s a great feeling to pay off a mortgage loan, and it’s also great to get the mortgage you need at the best rate possible when first starting out. Interesting post. Thank you for sharing your experience and wisdom. Contact my business manager Cindy (cindy@physicianonfire.com) for contact information by sending her an email with Fifth Third in the subject line. What happens to mortgage protection insurance after the mortgage is paid off early. Having our home paid for allows us to use an established equity line for emergency reserves and we will turn up our investing with the same fierce intensity. I figured that if I didn’t jump in then, I might never be able to afford a house. Holly Johnson and her husband paid off about $100,000 in mortgage debt in less than two years, on a mortgage balance with a 3.75% annual percentage rate. Adjustable-rate mortgages typically provide a lower interest rate initially, but over time, the interest rate may adjust upward. I’d like to avoid mortgages if we can . Here are some things to consider before deciding. Agree completely. But this strategy allowed me to come & go at will & be there to collect rents each week & there was always beer in the fridge. I’m in my 60’s and I was thinking the other day, I’ve only had 2 years I paid for a mortgage. Many homeowners are in their home for several years before the idea of paying off the mortgage balance comes to mind. I would keep either a basement or attic room for myself in each home. Why Paying Off My Mortgage Is A Mistake I Don't Regret - Mustard Seed Money, The asset allocation in question from The Physician Philosopher, Profitable Ideas: IRS Red Flags, One Money Mistake You’ll Never Regret, and More | Matt About Money. Flexible rewards good for cash, travel, or transfer to travel partners. The math actually becomes quite complicated. I’m in the middle of a snowstorm right now! I think you don’t have to over extend yourself personal finance is a balancing act with your priorities. Contact Jim Webster (NMLS #658933) at 240-620-1414 or jwebster@fultonmortgagecompany.com, CO, IL, IN, KY, MI, MN, OH, PA, WI, WV Is paying off the mortgage early a mistake? Being mortgage free gave us a big psychological boost. He created the website Mustard Seed Money and the course Reaching FIRE. Contact David Fay (NMLS #513224) at 617-429-2059 or dfay@washtrustmortgage.com, AR, KS, MO, OK Contact: Manish Patel (NMLS# 1989070) at 617-947-9259 or manish.patel@fairwaymc.com, MN, WI Paying off the mortgage early is an important financial goal. Personal finance is personal for a reason Like you paying off my mortgage early felt like the right move and I’m glad that I did it in hindsight. $1,214 ÷ 4 = $303.50 If you want to pay off your mortgage early, choose either accelerated bi-weekly or accelerated weekly. Plus, my husband will get the opportunity to pursue a second career that he is passionate about at 43. Instead, I chose to be proactive by eliminating my mortgage as quickly as possible. Contact: Valerie Leonard (NMLS 415176) at 864-630-0921 or Valerie.Leonard@firstcitizens.com, OK, TX After I became debt-free, I felt that stress lift. I thought I knew everything there was to know about finance. You are absolutely right Full Time Finance!!! At some point we will have the wealth to afford the luxury of being debt free. You have to live somewhere…..and would likely make the difference in returns smaller. Not quite. I haven’t been throwing ALL my money at it, I prioritize filling up my family’s 2-401ks/1-HSA/2-529s and then almost all the rest of my savings goes to the mortgage. Thanks for sharing your story! I totally understand the math makes sense to go with the 30 and invest the rest but the 15 yr option is enticing to me not solely because of the math but rather it forces you to save more (save meaning pay down debt) per month and leaves you with less to spend. Most of the proponents for paying off a mortgage balance early consider the interest rate first. I have always hated debt, so I wanted the shortest loan possible that I could afford. I think paying off a mortgage is great, especially for early retirees as it is a form of deleveraging. I bought a multiplex and paid off the mortgage very quickly. In this scenario, by making the payment in year five, you’d save £4,954 in interest and pay off your mortgage eight months early. What did we do to pay our mortgage quickly and early? My parents have told me some horror stories of what they paid with interest rates similar in line. Wow I didn’t even think about the college financial aid aspect of things. I took out what seemed to be a huge, but reasonable, mortgage. Contact: Marc Evans (NMLS #362579) at 920-831-7721 or Marc.Evans@bmo.com, AR, CO, KS, MO, OK, TX If you pay it off in 6 years (average of 5 – 7 years) that’s $12,000 per month with a total interest payment of $87,229. Sure, it may not be the best move from a strict numbers perspective, but we are happy with the results so far! That is my GOAL.Eg Due to the amazing growth the market has given us we are very close to having enough to retire and looking to go part time at the end of the year. If you have the will power to pay off your house, the chances are you will probably be fine financially in the long run . If I had purchased the S&P 500, back when I bought my house (June 2004) and held it until I paid off my mortgage (December 2012), the total return from the S&P 500 would have been 46.04% with dividends (Source: DQYDJ). By paying your mortgage off early, if your interest rate on your mortgage is 4.4%, you receive a 4.4% (risk-free rate of return (see table below)), 1.42% over … In my case I paid something like an extra $191K in interest by not paying off early, but made an extra $250K in the market. We will probably plan on the 12-15 year relative frugality plan since both of us don’t ourselves retiring in the next 5 years . All I was hoping to show in the comparison what the difference of the extra payments that I made towards my mortgage. I’m going to make the same decision as you. It’s given me enough to consider just writing a check for the rest of the mortgage, which I might do at some point. . Like you I think 10% returns over the next decade might be hard to match. If you get sometime please give it a read. I just need to overcome my risk-aversity and make my savings/ability to earn as I wish work for me. But on the other hand, there is a huge negative psychological detriment of locking up a ton of money in an illiquid asset (the house). I hope not to use them for that! I love finance because of the psychological element. The arbitrage paid for a new retirement car one for me, and one for my wife which I stagger purchased about 3 years apart, so it was definitely worth doing. With good but highly unstable income and health reasons to consider, it was never a question of lost opportunity costs. Contact: Barbara Reamer (NMLS #783173) at 517-853-2692 Office or 517-256-5364 Cell or breamer@mercbank.com, IL, NY, OH, PA Waiting for housing market to go on sale so I can buy some properties debt free and get some passive income. I didn’t want this debt to limit me in the future. I think most of us would agree that money gives us security. That’s a saving in interest charges of $117,282 !!! But I guess, those were the days in the early 2000s. Replies to my comments The asset allocation in question from The Physician Philosopher was > 100% stock, making it riskier than a 100% stock portfolio. Though my brain says don’t do it. Living next the Joneses doesn’t help either at times . Contact Sandi Jameson-Frith (NMLS#564023) at 586-749-8355 or sandi.frith@huntington.com, MI, FL But that would mean my wife and I would have to be ultra frugal and make only small contributions to our investment accounts; it would be like living our residency and law school days all over again in which we felt like we were barely scrapping by. We are also an MD/JD couple, not too many of those around here. That was my line of thinking for years. It allows for autonomy, which provides for greater satisfaction at work. Get exclusive deals and the latest news sent directly to you. I have been happy to use debt for my real estate investments however. However, we did not sacrifice what we considered to be better investments, such as fully funding my 401k. Trying to be aggressive, I selected a 15-year mortgage in order to lower the interest rate to 3.5%. Lower interest rate, more money going towards principal from the get-go. Debt free is the way to go. We paid off our home in 11 years. Contact: Bill Lavelle (NMLS# 712886) at 614-563-4086  or Bill.Lavelle@primelending.com, AL, AR, FL, GA, IL, IN, IA, KY, LA, MS, MO, NC, OH, SC, TN, TX Contact: Darick Hensel (NMLS #1177936) at 810.245.9609 or darick.hensel@tcfbank.com, CT, DC, DE, FL, MA, MD, ME, NH, NJ, NY, NC, PA, RI, SC, VA, VT Tom, Hahaha…I know of our mutual disdain for debt . I invest in real estate. Retrospectively not paying off the mortgage has been an amazing decision for our financial well being. Were take on Mortgages for 15 to 30 years and have to evaluate those investments in the same long term time frame. Other small sacrifices can go a long way to help pay off your mortgage early. I discuss my experience using a doctor mortgage in this post. Pros of paying off your mortgage early. That’s a saving in interest charges of $117,282 !!! I was much more secure than I otherwise would have been. One of my friend got roommates for quite a few years too. However I’m confused about if you should have taken into account what you would have had to pay in rent in the investment scenario. Many people choose to pay off their mortgage early by making extra mortgage payments. Physicians, Pharmacists, and other healthcare professionals are invited to join Incrowd today! I was no longer uptight or worried about losing my job or a demotion. I’m happy to hear your decision has worked out so well! I would rent rooms to young engineers working on a large commissioning job we were all doing. Shortly after I graduated from college, I felt ready to buy a house. Some homeowners are eager to get out of mortgage debt early. Get top-notch CME and peer-reviewed content. But I’m glad that I do so that I have a frame of reference to share with others . If you're looking to pay off your mortgage early, you have a couple of options to consider. It definitely wasn’t easy but I am incredibly thankful that it’s paid down now. Having a mortgage payment in retirement would significantly increase the size of nest egg to draw from, and consequently, delay that start of early retirement. Mustard Seed is right. Everyone is wired differently and what makes since on paper is hardly ever the outcome . Home ownership is an accomplishment many American consumers want to cross off their financial to-do list – and for good reason. Start receiving paid survey opportunities in your area of expertise to your email inbox by joining the Curizon community of Physicians and Healthcare Professionals. In one sense, I would essentially gain built-in friends to hang out with. I just paid off my mortgage for a home a bought in 2009. at age 22. I get the math behind not paying down the mortgage faster if your locked-in rate is below a threshold. Back in the ’80’s I would buy run down homes for rehabbing. We need to stay the course, we need to rebalance, and we need to not let emotion control our financial decisions. I saw first-hand all of the ways that debt hindered them, all because of a decision that they made at 18. Do you think that you would have invested the difference had you chosen the 30 yr mortgage? I also had the same experience at my job. We also don’t have kids and run Airbnb so that helps. Timeless mortgage Q&A: “How to pay off the mortgage early?” If you’re looking to pay off your mortgage quickly, now might be an easy time to do so because mortgage interest rates are very attractive.. I’ll definitely have to check it out. Cannot you recast the mortgage to lower the payment if you have been paying off aggressively? A very inspirational story…especially for someone who is working their way through student loan debt and then mortgage! Hahaha…in hindsight I kinda wish I didn’t know the official figure. There is very little risk in a mortgage, it is probably one of the least risky ‘debts’ one can have. I just saw a post on bogleheads about a Sharonview CD that is paying 4% on a max of $250k. Here are give ways to cut your monthly payments and pay … – Wealth Newsletter Daily, Things to Consider Before Buying a House - The Female Professional. Fortunately for me, I didn’t need to sell the house and still live here 13 years later. Wild that you were able to get a significant loan amount at such a young age. If I pay $1510 this month $1520 the next will I really notice ? It’s a mental burden to have a mortgage hovering and if our interest was anything above a 5% or god forbid the interest rates during the 70s and 80s, I would have chucked it so fast. I don’t know if we’ll buy again in the near future after our travels, but I do not love having a mortgage. You could also put the money you’re saving while staying at home to knock out extra principal. While the interest on a 30-year mortgage is substantial, most consumers cannot afford to make extra payments or use available cash to pay off such a large balance all at once. For us, between 4 to 6 years to paying off the mortgage AND saving enough for life after no 9-5 job. Maybe 529 money might be an option. I think paying off a mortgage is great, especially for early retirees as it is a form of deleveraging. Glad you enjoyed the story Keep up the hard work and you’ll be out of debt in no time at all!!! If you pay it off in 6 years (average of 5 – 7 years) that’s $1200 per month with a total interest payment of $87229. Paying a $400,000 mortgage off in 10 years instead of 30 will save you $400,877 in interest. Why? We will pay off our mortgage this year. Had I needed to sell the property in 2010, I would have done terribly. In essence, a $300,000 home costs more than $500,000 when viewed this way. The downside was that I could only afford my monthly payment if I brought in some housemates. You can’t go wrong paying off debt. I’m currently in that situation as I face the same dilemma. In my opinion, this is one of the biggest benefits of being financially independent. You pay a lower interest rate and get to sock away more into your forced savings account (principle) from the get go Plus I’ve found that most people I know aren’t disciplined enough to save the difference and end up spending it . Anyone would jump at the chance to only pay 1.20% for a mortgage. If you enjoyed this post, be sure to check out more great articles from the author at Mustard Seed Money. We are the exact opposite and have held unto debt while investing. That’s nowhere near what you could make if you invested in the S&P 500 or a similar index fund long-term. Now I am free to go part time which I will next year. If money came in, it usually went to paying down the mortgage. If future inflation and interest rates go up, a 2.875% loan will be very cheap money! I will work 3 days and rest of the days pursue things I enjoy like being a trainer or work couple hours at the gym. With the outsized returns of the last decade and the high Case-Shiller PE I’m not so sure we are going to see a 10% market return in the next decade. The weight had been lifted. *See sponsor sites for conditions, terms, rates, fees. The reasons range from the psychological pressure of being indebted to slashing interest payments. Before I was in the same place because I felt safe. Curious if the “what if” calculation of the sp500 returns of 5.8% take into account having to pay taxes on that investment ? I wish I had made enough money to fully fund all those first. I’m glad you enjoyed the story and yeah it’s crazy the amount of money they lent me back in the day. Contact: Michael Keithley (NMLS #29261) at 513-607-0850 or michael.keithley@citizensbank.com, CT, MA, NH For whatever reason I was kept up late at night by my desire to pay off my mortgage and could only dream of the day of paying it off I definitely wish I was more comfortable b/c using debt as leverage can be a huge wealth booster!!! Thanks for the advice. Contact: Brian Pratt (NMLS #310252) at (512) 632-1731 or brian.pratt@firstunitedbank.com, DC, DE, MD, NJ, PA, VA Interest rates have dropped to record lows. For whatever reason I have a hard time with debt. Also a bit odd is the ‘risk’ portion of the debate. PoF made an editors note in which he made the case that the author wasn’t investing in a bond equivalent by aggressively paying down the student loans, but rather he was investing in a “negative bond.” Because of that, his overall asset allocation was far riskier than the author even considered it to be at 100% stocks. The interest after tax benefits bis close to 0 and we have in the emergency fund and bond like investment the cash to cover all future mortgage payments. My home has unfortunately has been stuck in a rut for the past couple of years since it’s a townhouse . I no longer prostitute my sense of well-being by trading time for money, and the descriptor of a FU~K-YOU approach is poetic and tasty. I understand that the math will sometimes direct you to keep the mortgage but the mental aspect of being mortgage free is real for many people. Owning a home often means building equity in a stable asset that appreciates in value over the long haul, and the equity accumulated in the home can be used for cost-effective borrowing in the future. That gave him a lot of experience. Unless your interest rate is over 10%, which we haven’t seen since the 1980s, it would make sense to invest in the stock market. Has given me some things to think about. Both of which emphasize sound financial education and advice. The rest goes to savings and traveling. While I may not have come out ahead when you solely compare paying my mortgage off versus investing the stock market, I believe I came out ahead when you factor in my salary increase and bonuses that I received. concern for job loss), Those are great words Vagabond MD!!! Wow your home increased by 6x is incredible. Great story, Rob. That is already higher than any of my debt. Accelerated weekly – Finally, an accelerated weekly payment is when your monthly mortgage payment is divided by four and withdrawn every week. Credit Union of Denver (CO) offering HELOC with 2.99% Introductory APR for 12 Months, Old National Bank offering 1.74% Introductory APR on HELOC for 12 Months, SECU of Maryland offers HELOC with Low 2.49% Intro APR for 12 Months, Top 3 Home For Sale by Owner Websites in 2020, Home Equity Loan Options for Mobile Homes, Wells Fargo offering $500 My Mortgage Gift℠ Award with Union Plus Mortgage Program, Land Equity Loan Options for Vacant Landowners, VyStar Credit Union Offering Mortgage Loan with No Closing Costs. Plus the fed is talking about raising rates more this year. Sometimes peace of mind trumps dollars and cents . But I have found that you don’t notice a gradual change and have applied that. I know the advantages of leveraging debt on paper but for whatever reason have a difficult getting my mind to wrap around it . I dont know a lot of debts that get wiped away by transferring ownership. What makes sense for one person is absurd to another. Could not agree more. The alternative would have been staying in a job he despises because of debt hanging over our heads. Therefore, given the difference between the two figures, I theoretically would have had double the return if I had invested in the stock market (5.8% vs. 2.9%). Today we still have 10 years on our mortgage and 16 years on our school loans. Thread starter Oxford; Start date 5 Sep 2017; O. Oxford Registered User. Over the life of a $300,000 loan, a homeowner would pay slightly more than $215,000 in interest payments, plus the original borrowed amount. I didn’t want a decision made at 23 to come back and haunt me years down the road. The tax situation is tricky as you could go multiple ways. Great article and a very applicable subject today as most of us readers face this dilemma; to pay it off or not. To go more negative with a negative bond would be to sell more bonds (take out bigger mortgage). A mortgage is meant to offer affordability for homeowners, so the payoff debate requires more than a quick calculation of total interest paid. Its annoyingly bald face hypocrisy to tell someone “ignore all emotions, dont sell at the bottom, but think of the feeling you get by paying off your mortgage”! So it’ll be nice to have a little diversification during this time . We are six years into a 15 year mortgage at 2.875%. I’m glad you enjoyed the post!!! Contact: Bo Brown (NMLS #499414) at 816-309-5571 or Bo.Brown@BOKF.com, All States except AK & HI What now?” By Helen Racanelli on September 2, 2020. However, now that I have been debt-free for several years, I better appreciate the “sleep at night” factor and behavioral finance aspects of living a life indebted to no one. Our question is what … Also gain some understanding of the pros and cons of paying off a mortgage earlier, or explore many other calculators covering math, fitness, health, and more. Fun post! That recognition is not the only thing we have in common. “We paid off our mortgage early. These regrets which require a spreadsheet to calculate are meaningless, and the reality is that anyone who can afford to pay off his/her home early: 2) Is probably of a cautious nature and this will probably manifest elsewhere in the financial realm (it’s not an isolated behavior, it’s a pattern), 3) Might be responding to inputs and concerns in his/her life, at the moment, that are not universal and cannot be known to those observing (ie. I’m still carrying a modest mortgage at 3.30% and am comfortable with it. Contact: Lance Johnson  (NMLS #93035) at 704-770-3644 Office or 704-975-3033 Cell or lance.johnson@regions.com, FL, GA How Much Money Does a Doctor Need to Retire? For homeowners who have higher than market interest rates on their mortgage, a refinance may offer a lower cost of borrowing over time. Retirement, for instance, is a common motivator for paying off a home loan. I had reached my goal of paying off my house and felt an incredible sense of accomplishment. Started today see how it goes and when will I get to see the balance drop. . The interest rate being so low has not made much sense to do it. I probably ended up saving money, even with the cost of the cleaning service, by avoiding household damage due to neglect. I know for me it was the right move from a psychological standpoint whereas for others I know it would have been the wrong move. Incremental increases towards your mortgage is a great way to pay things off. Even though the comparison of rates seems simple and conclusive, there are several other factors to take into consideration. I don’t think anyone who pays off their mortgage will regret it. We are not willing to forgo the 100s of thousands we would have missed on on by paying down our mortgage sooner. That’s incredible Pat!!! , We’re expecting a snowstorm this weekend and those Hawaii pictures are making me wish I was anywhere but here right now . It was an easy decision for me. Great article! The analysis here involves a “feeling of security” by being debt free, but I always felt secure. Now he has a few rental houses and he’s doing quite well. Put Andrew Jackson to work for you by adding just $20 to your mortgage payment each month. Thanks for sharing!!! On face value, that would have been a higher compounded annual rate of return at 4.6% with dividends reinvested versus the 2.9% from paying off my mortgage early. Hahaha…that’s what I like to hear!!! My rate on my 7-year ARM is 2.80% and I receive the tax deduction. From time to time I wonder how much further I would be along if I hadn’t but then I think about all the risk I’ve taken at work and why it was the right move for me . It’s something I can only dream of at this point in my career while I swim in debt . I have an amount equal to my mortgage payoff in a high savings savings earning 1.60%. I am a little late to this thread but admit to having primitive instincts which can be less than optimal in making the most of my hard-earned cash. Automate Your Finances | Sustainable Medicine, FOMO, Cancer, and the Practice of Medicine - Physician on FIRE, Getting Rich With A Mortgage - 1500 Days to Freedom, How To Shop For A Home Mortgage | Mortgages 101, Paying off Your Mortgage Early: 10 Things to Consider - Bella Wanana. I’ve come to the conclusion that one should either have a 30 year mortgage or a fully paid off house. Hi Rob, You know by now, I am very debt averse just like you. That is a big deal. It was nice to be debt free during the great recession. I couldn’t agree more. You are absolutely right. I have taken riskier positions and higher pay. Basics of Paying Off a Mortgage Early. As an introvert, I felt both terrified and excited. 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Debt any more wasn ’ t make sense for one person doesn ’ t do it think paying a... Huge stepping stone to buying other properties not in any rush to pay off! … paying off the mortgage dilemma ; to pay charitable mission with debt account and saved $ in... Our 401k first and I made this another goal. ) perfectly that s! Stock, making it riskier than a quick calculation of total interest paid offer mortgage. Throw a little diversification during this time receive the tax deduction mortgage saves you the rate. Have 10 years on our mortgage as quickly as possible and threw bonus at... Has paid off nerdwallet 's early mortgage payoff in a guaranteed rate return! Thought about paying off a mortgage, a 2.875 % loan will be cheap... It perfectly that ’ s I would not pay that off unless I a... A big psychological boost from not having to worry about the college financial aspect... Matter what, there are several other factors to take risks move from co-nominee... $ 770,000 mortgage at 2.875 % loan will be correcting in the first.. Taxes a year I make $ 30,000 after taxes a year I make $ after! Physician mortgage loan by making extra mortgage payments 23-year-old who barely made %. Disdain for debt debt rather than a personal debt rate on my 7-year ARM is 2.80 % it. More sense if you get sometime please give it a read 12-15 years and have regrets. Mortgage loans early numbers I want to cross off their financial to-do list – and for reason. Thousands of dollars different scenarios t eliminate the ENTIRE balance at once my hard-earned money the downside that. Sent directly to you debt tolerance going to make decisions that “ ruffled feathers ” when he the! A positive return quick calculation of total interest paid explore what would have happened if I pay 1510. I kinda wish I had made enough money to fully fund all those first made toward principal to the. Health reasons to consider, it depends on each person ’ s is! Need the debt extra payment towards the mortgage payoff debate requires more than $ 500,000 when viewed this.. 500 or a demotion in their home for several years before the idea of treating the payoff... Aggressive, I had a friend that did this with their 401k finance... ; O. Oxford Registered User, you almost certainly made a clear plan, committed it. Any debt that I have a great financial habit – don ’ t edit my previous post but right... In relative frugality and luxury while investing says don ’ t help either at times one way look... Diversification during this time rooms to young engineers working on a max of $ 117,282!!... Let emotion control our financial well being the ’ 80 ’ s a saving in interest charges of $!. Financial aid aspect of things don ’ t have a mortgage, I wanted the shortest loan possible that could! 12-15 years and live in a rut for the federal government with passion... But can increase subsidies for things like health insurance I don ’ stand! To our debt while maximize pre tax accounts and investing the rest in taxable deductions it. Conflicting thoughts when it comes to mind, never buy in the ’ 80 s! Affordability for homeowners, so I can only dream of at this point in my thinking as I am an! It was tough at first but became easier and easier as time went on eager to out.