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How dumb was I?

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  • How dumb was I?

    Today I made my last mortgage payment.  Paid off my primary residence in 5 years, it was a 2.65% fixed.  I received a lump sum from selling my last rental property (residential real estate is not for me) and decided to pay off the mortgage instead of putting it in the market.  Now my only debt is my student loan (80k at 1.6%) which I've promised myself that I won't pay off early!

    3 years ago my total monthly debt service was 14k and now its down to 600.  I need to find an expensive hobby or cut down my hours ?

  • #2
    Dumb as a box of hammers.

    Just kidding. $14,000 a month is suffocating. Congrats! -- I did something similar, following through on my desire to be debt free by forty.

    Cheers!

    -PoF

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    • #3


      Dumb as a box of hammers.
      Click to expand...


      I'm too dumb to get that joke

      Why not just pay off the last of the loans in 5-6 months and call it a day?
      An alt-brown look at medicine, money, faith, & family
      www.RogueDadMD.com

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      • #4
        You made a choice that you felt was best for you given your circumstances, etc.....cant go back now. You probably sleep better and feel less stress so I guess thats the good stuff.

         

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        • #5


          I’m too dumb to get that joke
          Click to expand...


          I usually say "dumb as a box of rocks," but I borrowed a line from an obscure 90s song instead. The video features Fabio for what that's worth.

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          • #6





            Dumb as a box of hammers. 
            Click to expand…


            I’m too dumb to get that joke

            Why not just pay off the last of the loans in 5-6 months and call it a day?
            Click to expand...


            i second the "why not just pay off the last of the loans" and be totally debt free.  you are so close!!  congrats on home payoff!!!

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            • #7
              The good news is that you can always take out another mortgage and invest the money in the latest tech stock iPo

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              • #8
                Wow, congrats! If you really feel that bad about paying it off, you could always refi, take some cash out, and throw that in the market. Wait, don't do that!  :P Sounds like you'll be able to sleep easy at night and that's priceless...

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                • #9
                  Philosophically the way to think about this stuff is "would I take a 1.65% loan or a 2.65% loan and invest it in the market?" 1.65% I would probably just pay it off slowly but one can't discount the psychological impact of owing money and i'm sure it was very liberating to know that you don't owe that money anymore. Having that mortgage paid off means one less payment each month and one less thing to worry about, kudos.

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                  • #10








                    Dumb as a box of hammers. 
                    Click to expand…


                    I’m too dumb to get that joke

                    Why not just pay off the last of the loans in 5-6 months and call it a day?
                    Click to expand…


                    i second the “why not just pay off the last of the loans” and be totally debt free.  you are so close!!  congrats on home payoff!!!
                    Click to expand...


                    I considered doing that but my next financial goal is to have 1M in investment accounts by the time I'm 40.  If I paid off the student loan I almost certainly wouldn't make that goal.  As it is I'll be cutting it really close with only 1.5 years left!

                    I justified paying off the mortgage because it would free up 3k/month in cash flow.  I can't justify paying off the student loan to free up 600/month especially when the interest rate is less then inflation.

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                    • #11
                      Wow.

                      People aggressively paying of 2.65%.

                      Quick: Anyone here can lend me money for 5%? I have good credit with high salary. Thanks.

                      But really, different strokes for different folks. I personally don't pay off anything aggressively unless its like ...eh lets say 10%. Even that (my card is 9.99%) has balance lol. Just me though.

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                      • #12




                        Wow.

                        People aggressively paying of 2.65%.

                        Quick: Anyone here can lend me money for 5%? I have good credit with high salary. Thanks.

                        But really, different strokes for different folks. I personally don’t pay off anything aggressively unless its like …eh lets say 10%. Even that (my card is 9.99%) has balance lol. Just me though.
                        Click to expand...


                        This attitude seems a lot more common among those who don't yet have "enough" and surprisingly uncommon among those who do. Probably a marginal utility of wealth thing. Just an observation.
                        Helping those who wear the white coat get a fair shake on Wall Street since 2011

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                        • #13
                          I'm confused how paying off any debt is a bad thing. Towards the end of a mortgage, you're no longer receiving much tax benefit from interest deduction. A guaranteed return of 2.65% isn't exactly a bad thing either.

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                          • #14
                            Five reasons I haven't paid off my mortgage even though I could:

                            1. I'd rather invest the money that would go toward paying it off.

                            2. Knowing I could means I don't actually need to do it, so there's no stress about owing the money.

                            3. Mortgage interest deduction.

                            4. Property taxes are much higher than mortgage payment, and that never goes away, so my anticipated relief at reducing housing costs is limited.

                            5. I plan to sell and buy a less expensive house when I retire, so I'm not concerned about carrying the mortgage into retirement.
                            My Youtube channel: https://www.youtube.com/channel/UCFF...MwBiAAKd5N8qPg

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                            • #15
                              So should everyone with a paid off house take out a mortgage on it and invest that money?

                              Genuine question here, as I'm in a similar situation as OP

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