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

[Doboji]

Why would you want to pay it off? So long as your interest rate is low, you can probably find an investment where the return is greater than the interest rate on your mortgage. You'd be better off putting your money into said investment than trying to avoid paying the interest on that mortgage.

-Max

 

[DBL]

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.

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.

Sounds like his parents set him up pretty well. He doesn't really need to be able to actually afford a $1 million house on his salary, so w/o any additional specifics, nobody here really has any idea.

 

[Mermaidman]

Instead of making one $1200 payment monthly, i decided to send a $600 check twice a month to accelerate the payoff. The lender absolutely refuses to credit the first payment until the full amount is received! Oh, but the lender has a solution: A special program to essentially doing the same thing (1/2 payment twice a month), but I have to suscribe and pay a monthly fee. WTF? :| :|

/RANT

(Sorry for the OT rant, but I can't believe the bank's greed.)

BTW, we took a 30 yr loan and pay extra every month when possible. Gives us flexibility.

 

[tfinch2]

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

 

[kranky]

Originally posted by: Mermaidman
Instead of making one $1200 payment monthly, i decided to send a $600 check twice a month to accelerate the payoff. The lender absolutely refuses to credit the first payment until the full amount is received! Oh, but the lender has a solution: A special program to essentially doing the same thing (1/2 payment twice a month), but I have to suscribe and pay a monthly fee. WTF? :| :|

/RANT

(Sorry for the OT rant, but I can't believe the bank's greed.)

BTW, we took a 30 yr loan and pay extra every month when possible. Gives us flexibility.

That's pretty typical for mortgage holders - they'll only credit your account once a month.

 

[MrsBugi]

Originally posted by: DBL

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.

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.

Sounds like his parents set him up pretty well. He doesn't really need to be able to actually afford a $1 million house on his salary, so w/o any additional specifics, nobody here really has any idea.

True, and unfortunately it would be rude of us to ask for specific #'s.

 

[imported_surferdude]

first house i bought will be paid for in 3 years,bought it in 97 for 95K. i have renters in it now🙂
house i bought 18 months ago 145K i plan to have paid off in 15 yrs. i could list it today for 375-425k.

 

[NuclearNed]

My home loan is for 15 years. I might be able to pay it off a little sooner than that.

 

[DBL]

Originally posted by: tfinch2

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

...a small fraction of the purchase price. so?

 

[tfinch2]

Originally posted by: DBL

Originally posted by: tfinch2

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

...a small fraction of the purchase price. so?

Who knows without more info? You might be right, but what if his parents/he didn't put anything down, and got a 30 year note with like a 6.5% APR. That's 1.2 million in interest.

 

[Mardeth]

For my parents probably 10-15 years.

 

[DBL]

Originally posted by: tfinch2

Originally posted by: DBL

Originally posted by: tfinch2

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

...a small fraction of the purchase price. so?

Who knows without more info? You might be right, but what if his parents/he didn't put anything down, and got a 30 year note with like a 6.5% APR. That's 1.2 million in interest.

Sure...over the 30yr life of the loan but certainly not in "several" years. Besides 1.2 million in interest over 30yrs is not 1.2 million in real dollars. You need to take into account inflation over 30 years.

 

[SearchMaster]

Originally posted by: Doboji
Why would you want to pay it off? So long as your interest rate is low, you can probably find an investment where the return is greater than the interest rate on your mortgage. You'd be better off putting your money into said investment than trying to avoid paying the interest on that mortgage.

-Max

There is a tremendous sense of freedom in having zero debt. A feeling I should have in about 7 years when my house is paid off 🙂.

 

[JS80]

Originally posted by: tfinch2

Originally posted by: DBL

Originally posted by: tfinch2

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

...a small fraction of the purchase price. so?

Who knows without more info? You might be right, but what if his parents/he didn't put anything down, and got a 30 year note with like a 6.5% APR. That's 1.2 million in interest.

Not a finance wiz are you?

 

[tfinch2]

Originally posted by: JS80

Originally posted by: tfinch2

Originally posted by: DBL

Originally posted by: tfinch2

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

...a small fraction of the purchase price. so?

Who knows without more info? You might be right, but what if his parents/he didn't put anything down, and got a 30 year note with like a 6.5% APR. That's 1.2 million in interest.

Not a finance wiz are you?

Let's put it this way. It's a smart investment if you have the $$. I see it from the accountant POV. Day in and day out, small businesses having short term success and the owners think it's time to buy a mansion.

 

[BlueWeasel]

40 posts into a topic about paying mortgages off early and still no Engineer sighting?

 

[JS80]

Originally posted by: tfinch2

Originally posted by: JS80

Originally posted by: tfinch2

Originally posted by: DBL

Originally posted by: tfinch2

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.

Check how how much he's really paid for that $1 million home with a mortgage calculator.

...a small fraction of the purchase price. so?

Who knows without more info? You might be right, but what if his parents/he didn't put anything down, and got a 30 year note with like a 6.5% APR. That's 1.2 million in interest.

Not a finance wiz are you?

Let's put it this way. It's a smart investment if you have the $$. I see it from the accountant POV. Day in and day out, small businesses having short term success and the owners think it's time to buy a mansion.

404 Understand of Finance Not Found.

 

[dartworth]

Originally posted by: BlueWeasel
40 posts into a topic about paying mortgages off early and still no Engineer sighting?

QFT...lol

 

[thirtythree]

I'm going to pay mine off when I get it... maybe.