It's official, I owe less than 100k on my mortgage

[Red Squirrel]

Payment just came out and I'm down to under 100k now. I kind of estimated it would happen as by comparing statements between two given years I pay off about 10k per year and was down to 110 last year around this time. 10 more years to go and it's paid off. Will be nice to have it paid off at a semi young age, I'll be 41. That's also a scary thought, that I'll be 40 in less than 10 years. Time goes by too fast. Once it's paid off I will probably take whatever money that went towards it and have it go towards some kind of investment. With costs of living always going up whatever money I get when I retire probably won't be enough.

 

[mztykal]

Congrats! I’ve got like 400 left of 800 so I’m almost there too!

 

[Billb2]

10K per year.

It doesn't work that way really.

At the beginning of the mortgage term you owe a lot of money, so most of the payment is for interest on that large amount (ie. $400 payment, $375 for interest, $25 for principal).

Near the end of the mortgage term you owe less money, so the interest is lower (ie. $400 payment, $25 for interest, $375 for principal).

If, at the beginning or the mortgage, you had made an extra monthly $25 principal payment ($25 x 12 months, or $300 annually) you would pay off the mortgage a year earlier and save $4500 in interest (save $375 x 12 months).

To save a year now you'd have to pay an extra $375 per month (principal) or $4500 annually.

 

[Red Squirrel]

I actually pay $400/mo extra. ($200 biweekly)

Which is a good thing as without that, a very small amount actually goes on the principal but extra payments go straight on it.

 

[KB]

Ugh, mine is taking forever but at least it wont take 30 years. I cant wait to save all that money when it is paid off.

If you do the math it is better to put the extra in the stock market than it is to pre-pay the mortgage if your interest rate is below 5%, but I understand the desire to get the debt paid off ASAP.

 

[ponyo]

Congrats! My sister told me couple months ago hers dropped below $100k as well. I think she has about 7 years left on hers. She's so thankful I told her to refinance to 15 years instead of the standard 30. She'll be finished with her mortgage about the time her sons hit college age.

I paid mine off about 10 years ago. Time flies. I'll never have another mortgage or car payment again. But paying off the mortgage is only half the battle. The other battle is saving some of what you would have paid in mortgage once your house is paid off. It's awfully tempting to spend and waste the mortgage payment money on something else. It doesn't mean you can't have fun but it won't be all fun and games once your house is paid off. But it sure is nice not having any mortgage or car payment. But property taxes and insurance still suck.

 

[thedarkwolf]

I'm down to $14k after 15 years and should pay it off in around 6 months but I only started owing $40k. The pro of living in an area with low housing cost, con I don't make squat either lol.

 

[Ichinisan]

Canadian funny dollars.

 

[ponyo]

I'm down to $14k after 15 years and should pay it off in around 6 months but I only started owing $40k. The pro of living in an area with low housing cost, con I don't make squat either lol.

I'm surprised the banks financed $40k mortgage. I know when I got my mortgage, most banks wouldn't do mortgage smaller than $50k. Lot of people finance cars that's more than $40k.

 

[Darwin333]

But that is in Cannuckistan dollars right? So what is that like $2,000 US?

 

[Engineer]

Will be 49 in January. Walked in the bank near my 37th birthday and wired all of my year end overtime and paid mine off - so mortgage free last 12 years. One of the best decisions I've ever made (and I know the arguments for investing the extra payments vs paying the mortgage off).

Congrats RS....it will get there before you know it and the feeling is great!!!

 

[rh71]

Paid off back in April. Feels good, but our property taxes are $16k/year. Doh.

 

[Red Squirrel]

Ouch I thought our taxes were bad, around 5k/year. What's worse is watching the city waste money on the most ridiculous things then they keep raising the taxes and water/sewer rates every year. Then they nickel and dime you on every little thing.