* Official mortgage payoff thread! *

[toothcarpenter]

I saw the student loan payoff thread, but didn’t see one for Home mortgage.

I paid off my home mortgage today! Yay!   It wasn’t the mathematically correct decision, (3% 10 yr mortgage) but it’s a great psychological relief especially if we see recession in the next few years.  As an orthodontist - we are mostly elective cosmetics and people cut back on braces in tough times and starting next month I’ll have an extra $5600/mo. to invest - it’s like a raise!

The car loans are at 1.9% and they are next on the hit list!  Maybe I’ll start the official debt free thread in a few months!

 

[jfoxcpacfp]

Congratulations to you! October is a great month for a bonfire...

[Hatton]

A good feeling I paid mine off about 15 years ago. Now you will notice your property taxes and homeowners insurance more.  I never paid attention to them when they were bundled into my mortgage.

[hightower]

Congrats!  I'm probably going to be refinancing our mortgage to a 15 year in the next few months.  My goal this year is to pay off all my student loans once and for all and refinance the mortgage.  The main reason to refinance is to take advantage of ultra low rates as well as to consolidate some other house related debt (a family loan we used to do some of the renovations when we first bought it).  Then we'll have no debt other than a 15 year mortgage.  Paying it off entirely is not a huge priority for me right now since we have a lot of equity already and since I'm still fairly young and need to be more focused on building savings.  Additionally, we'll likely end up moving in the next 5-10 years if things go according to plans.

[Lithium]

Hope to join you in the next three months!  26k to go.

[dentoid]

Is your practice paid off? I feel like that's the largest difference between MDs and debtoids is the insane practice loans we get the honor of taking on...

[Rb52dds]

That's awesome you paid off your house.... we're debt free besides our home and practice loan (took us forever to get there).
I've been worried a lot lately about another recession even though I'm a general dentist. Something about doing a startup in 2006 has left me scarred for life. At the end of the day most things dental are considered discressionary spending. is your practice paid off? I think I'm going to pay off the house before the office. They're both still big numbers. At least the student loans are all gone.

[janettebournes]

Coming up for us soon too!

Paid off the rental property mortgage earlier in the year (and as @hatton1 alluded to, I definitely do notice the property taxes and homeowner's insurances charges more now!)

On pace to have our primary residence mortgage paid off by early 2018 (3%, 15 years, ~$125000)

We also have 2 car leases remaining and are starting to kick the tires on buying and holding our cars longer now. Trying to decide between enjoying a new car every 3 years and being able to scream I'm debt free in the official debt free thread

[Hatton]

janettebournes wrote:

Coming up for us soon too!

Paid off the rental property mortgage earlier in the year (and as @hatton1 alluded to, I definitely do notice the property taxes and homeowner’s insurances charges more now!)

On pace to have our primary residence mortgage paid off by early 2018 (3%, 15 years, ~$125000)

We also have 2 car leases remaining and are starting to kick the tires on buying and holding our cars longer now. Trying to decide between enjoying a new car every 3 years and being able to scream I’m debt free in the official debt free thread ????

Click to expand...

Owing nobody nothing is empowering

[Doc Spouse]

janettebournes wrote:

 

We also have 2 car leases remaining and are starting to kick the tires on buying and holding our cars longer now. Trying to decide between enjoying a new car every 3 years and being able to scream I’m debt free in the official debt free thread

Click to expand...

My vote is owning the car.  Get one that you really love and it becomes more of a joy the longer you have it.  We have a 2012 Ford Fusion Hybrid and it's rare that a week goes by without my wife or I saying something along the lines of "Man, I love this car".  It's usually referencing gas mileage, but the truth is we both really love that car.  It's been paid for since 2013 and it's kind of nice being able to kick that extra money towards investing or the mortgage.

[ReFinDoc]

A 3% long term mortgage ? When do you think you will be able to borrow at these rates again? Between the  deductibility and a 2% inflation rate, the mortgage was free money. Don't get me going about missed opportunity costs.

A good CFO manages debt to achieve   maximum benefit.

 

[Zaphod]

ReFinDoc wrote:

A 3% long term mortgage ? When do you think you will be able to borrow at these rates again? Between the  deductibility and a 2% inflation rate, the mortgage was free money. Don’t get me going about missed opportunity costs.

A good CFO manages debt to achieve   maximum benefit.

 

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Not worth it, I have ranted on here into the endless abyss at length. There are certainly reasons to crush all debt, like wanting to start a practice, be really free, etc...

[VagabondMD]

ReFinDoc wrote:

A 3% long term mortgage ? When do you think you will be able to borrow at these rates again? Between the  deductibility and a 2% inflation rate, the mortgage was free money. Don’t get me going about missed opportunity costs.

A good CFO manages debt to achieve   maximum benefit.

 

Click to expand...

My experience is that people who pay off their mortgage early are also saving and investing aggressively, too. It’s not “either or”, it’s both. Similarly, people who keep their mortgages for the duration, and then some, are not aggressively saving. It’s just what I have seen among the partners in my practice and other physician and professional friends.

I paid off my mortgage in 2010 (age 45), and I have no regret. Doing so did not hinder me from building a decent nest egg.

[toothcarpenter]

dentoid wrote:

Is your practice paid off? I feel like that’s the largest difference between MDs and debtoids is the insane practice loans we get the honor of taking on…

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Yep - that was last year's goal.  It was 6% loan, so I hit it first.  That felt really good and was like an instant $15,000 a month raise!

[toothcarpenter]

Rb52dds wrote:

That’s awesome you paid off your house…. we’re debt free besides our home and practice loan (took us forever to get there).
I’ve been worried a lot lately about another recession even though I’m a general dentist. Something about doing a startup in 2006 has left me scarred for life. At the end of the day most things dental are considered discressionary spending. is your practice paid off? I think I’m going to pay off the house before the office. They’re both still big numbers. At least the student loans are all gone.

Click to expand...

I did the practice before the house since the interest rate was higher.  The interest is deductible on both.