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How many years did it take you/will it take you to pay off your home completely?

M

MrsBugi

Platinum Member
A friend of my husband's making $65k a year made the decision to purchase a $1 million+ home several years ago. The house has no furniture, he stresses about making mortgage payments every month, and he is depending on consistent raises in the future to pay off the house within 30-40 years. 🙁

I have no desire to live in a $1 million+ home and am looking forward to living in a moderately-sized home (not in California) for $200-300k that can be paid off within 10-15 years.

For the homeowners of ATOT, how many years did it take you/will it take you to pay off your home completely?
 
I will not pay my house off any sooner than 30 years when I do buy a house unless mortgage rates are a few points higher by then.

Your friend is an idiot.

At least he didn't do something stupid like buy an expensive car. He didn't, did he?
 
That $1 million home is now $2 million if he bought it "several years ago." So yea...he made a wise investment.
 
Originally posted by: mugs
I will not pay my house off any sooner than 30 years when I do buy a house unless mortgage rates are a few points higher by then.

Your friend is an idiot.
Click to expand...

Well you don't know his exact financial situation. What was his down pay? What's his mortgage? I'm sure his house doubled in price.
 
Originally posted by: JS80
That $1 million home is now $2 million if he bought it "several years ago." So yea...he made a wise investment.
Click to expand...

Unless he moves out of California, he'll never be able to realize that profit, and it doesn't sound like he's planning on moving.
 
Do you plan on living in the same home forever? If not, don't sweat paying it off in x years. Just make your mortgage paynents on time, and buy a new one when you're ready. The average time people stay in one house is about 7 yrs. YES, some live in the same house till they die, but they're the exception, not the rule. Most people upgrade as thier finances/social status allow, then downgrade when the kids move out on their own to reduce costs/maintenance.
 
30 years in theory but I doubt we will ever pay it off. We owe about $195,000 on it but could probably sell it today for $550,000-$575,000 so we are really not too worried about paying it off. My parents paid their house off in 1993, 25 year mortgage for $33,000. My mother just sold that house for $635,000.
 
Considering a fixed mortgage is likely the best interest rate you will ever receive, I fail to see the urgency in paying it off as quickly as possible. Sure, if you have got a boatload of cash and a maxed Roth and IRA, then perhaps you could make the argument, although then you could also make the argument you bought too small of a house.

Either way, how does someone making 65K qualify for a $1 Million house? That's a 800,000k mortgage with 20% down. A good 30 yr fixed probably gives him a monthly payment of $4.5K, which is greater than the take home for a 65K salary. I bet you don't know the whole story.
 
Originally posted by: mugs
Originally posted by: JS80
That $1 million home is now $2 million if he bought it "several years ago." So yea...he made a wise investment.
Click to expand...

Unless he moves out of California, he'll never be able to realize that profit, and it doesn't sound like he's planning on moving.
Click to expand...

Well let's say he bought a $500k and now he wants to move into that $1 million house...he can't because it's $2 million now.

I suppose to took a lot of risk buying that house several years ago but that risk paid off and now he's in a $2 million house.
 
Originally posted by: DBL
Considering a fixed mortgage is likely the best interest rate you will ever receive, I fail to see the urgency in paying it off as quickly as possible. Sure, if you have got a boatload of cash and a maxed Roth and IRA, then perhaps you could make the argument, although then you could also make the argument you bought too small of a house.

Either way, how does someone making 65K qualify for a $1 Million house? That's a 800,000k mortgage with 20% down. A good 30 yr fixed probably gives him a monthly payment of $4.5K, which is greater than the take home for a 65K salary. I bet you don't know the whole story.
Click to expand...

I would guess a much higher down payment. Or OP is clueless at the real situation.
 
Originally posted by: mugs
Originally posted by: JS80
That $1 million home is now $2 million if he bought it "several years ago." So yea...he made a wise investment.
Click to expand...

Unless he moves out of California, he'll never be able to realize that profit, and it doesn't sound like he's planning on moving.
Click to expand...

You could opt to sell and rent for the time being.
 
I just bought my house last year and I expect to pay it off in approximately 29 years unless we move. As of right now, I like the area and my kids are in really good schools, so unless I get a job transfer and/or something else happens unexpected, I probably would not move for at least another 15 years or more.
 
ur husband's friend is an idiot
i make 120k and i bought a 150k apartment w. the gf (50-50 mortgage, i pay the maintenance) and its alrady hard enough. then again i just started making 120k this year

we borrowed 10k and did a 15 year mortgage. it was locked at 5.25%. im about to start paying more than they ask to shave off the interest.

edit: i didn't see the "several years ago" part, so yeah it was a smart investment, but it will be very hard to pay the mortgage for him if his salary is still at that low range ~65k. but if he sold it, he would've made off with a nice wad of extra cash. :thumbsup:
 
Originally posted by: EKKC
ur husband's friend is an idiot
i make 120k and i bought a 150k apartment w. the gf (50-50 mortgage, i pay the maintenance) and its alrady hard enough. then again i just started making 120k this year

we borrowed 10k and did a 15 year mortgage. it was locked at 5.25%. im about to start paying more than they ask to shave off the interest.
Click to expand...

If you can't make greater than 5.25% off your extra cash...you shouldn't be calling someone you don't know an idiot.
 
I'll pay my house off in 10 years, 3 months at my current rate. Yes, I'm odd that I have every bank accout projected to the penny for over a decade. If anything unexpected happens, that date will of course change.

I'm happy to get a guaranteed 5.5% return on my investment by paying off the house early. As part of my overall retirement portfolio, a guaranteed 5.5% return with no risk, no taxes on the gains, and no waiting until I'm 65 to use the money is quite nice. Then I add in higher risk and potentially higher return stocks. When you have a no risk investment, you can be much more risky with your other investments. The net result is a high return, low volitility mixture.
 
Originally posted by: EKKC
ur husband's friend is an idiot
i make 120k and i bought a 150k apartment w. the gf (50-50 mortgage, i pay the maintenance) and its alrady hard enough. then again i just started making 120k this year

we borrowed 10k and did a 15 year mortgage. it was locked at 5.25%. im about to start paying more than they ask to shave off the interest.
Click to expand...

this strikes me as very odd... at 120k/year i think half of the 150k mortgage would be pretty easy to clear...
 
Originally posted by: JS80
Originally posted by: EKKC
ur husband's friend is an idiot
i make 120k and i bought a 150k apartment w. the gf (50-50 mortgage, i pay the maintenance) and its alrady hard enough. then again i just started making 120k this year

we borrowed 10k and did a 15 year mortgage. it was locked at 5.25%. im about to start paying more than they ask to shave off the interest.
Click to expand...

If you can't make greater than 5.25% off your extra cash...you shouldn't be calling someone you don't know an idiot.
Click to expand...


see my edit: i thought OP said the friend bought it just now. as i have corrected myself, buying a 1mil house several years ago is a great investment. like you posted before selling now could easily double his investment, esp. in California
 
Originally posted by: Lorax
Originally posted by: EKKC
ur husband's friend is an idiot
i make 120k and i bought a 150k apartment w. the gf (50-50 mortgage, i pay the maintenance) and its alrady hard enough. then again i just started making 120k this year

we borrowed 10k and did a 15 year mortgage. it was locked at 5.25%. im about to start paying more than they ask to shave off the interest.
Click to expand...

this strikes me as very odd... at 120k/year i think half of the 150k mortgage would be pretty easy to clear...
Click to expand...


mortgage is at 800 a month, going to put 1000 a month starting next month. and then theres maintenance/ utilities of 1000 a month (its NYC) and then i put half of my money in stocks etc.
 
Bought my place with 0 down. Have been making extra payments when money's available in order to get the PMI off. I expect to probably pay off my property well under 30 years even though I took a 30 year loan. (I have an ARM, so I know it's going to go up. Currently only paying 4.25% though)
 
Originally posted by: mugs
Originally posted by: JS80
That $1 million home is now $2 million if he bought it "several years ago." So yea...he made a wise investment.
Click to expand...

Unless he moves out of California, he'll never be able to realize that profit, and it doesn't sound like he's planning on moving.
Click to expand...

He's not planning on moving.

At least he didn't buy an outrageously expensive car - he has a 2005 Mustang that he's also in the process of paying off.
 
Originally posted by: DBL
Considering a fixed mortgage is likely the best interest rate you will ever receive, I fail to see the urgency in paying it off as quickly as possible. Sure, if you have got a boatload of cash and a maxed Roth and IRA, then perhaps you could make the argument, although then you could also make the argument you bought too small of a house.

Either way, how does someone making 65K qualify for a $1 Million house? That's a 800,000k mortgage with 20% down. A good 30 yr fixed probably gives him a monthly payment of $4.5K, which is greater than the take home for a 65K salary. I bet you don't know the whole story.
Click to expand...

We assume his parents helped him out with the downpayment, they're quite wealthy themselves but believe in hard/honest work ethic and are leaving it to their son to finish paying it off.
 
Originally posted by: MrsBugi
Originally posted by: DBL
Considering a fixed mortgage is likely the best interest rate you will ever receive, I fail to see the urgency in paying it off as quickly as possible. Sure, if you have got a boatload of cash and a maxed Roth and IRA, then perhaps you could make the argument, although then you could also make the argument you bought too small of a house.

Either way, how does someone making 65K qualify for a $1 Million house? That's a 800,000k mortgage with 20% down. A good 30 yr fixed probably gives him a monthly payment of $4.5K, which is greater than the take home for a 65K salary. I bet you don't know the whole story.
Click to expand...

We assume his parents helped him out with the downpayment, they're quite wealthy themselves but believe in hard/honest work ethic and are leaving it to their son to finish paying it off.
Click to expand...

Hmmm.... DBL has a good point, because the property taxes on that house must be around $20k a year as well. I really don't see how a person making $65k could afford that unless the parents paid for more than half of the house.
 
Originally posted by: mugs
Originally posted by: MrsBugi
Originally posted by: DBL
Considering a fixed mortgage is likely the best interest rate you will ever receive, I fail to see the urgency in paying it off as quickly as possible. Sure, if you have got a boatload of cash and a maxed Roth and IRA, then perhaps you could make the argument, although then you could also make the argument you bought too small of a house.

Either way, how does someone making 65K qualify for a $1 Million house? That's a 800,000k mortgage with 20% down. A good 30 yr fixed probably gives him a monthly payment of $4.5K, which is greater than the take home for a 65K salary. I bet you don't know the whole story.
Click to expand...

We assume his parents helped him out with the downpayment, they're quite wealthy themselves but believe in hard/honest work ethic and are leaving it to their son to finish paying it off.
Click to expand...

Hmmm.... DBL has a good point, because the property taxes on that house must be around $20k a year as well. I really don't see how a person making $65k could afford that unless the parents paid for more than half of the house.
Click to expand...

Either way he got a good deal.
 
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