No Mortgage!

Happy Monkey · 12-06-2006, 12:40 PM

I just sent off my final mortgage payment! It took me 7.5 years of putting all of my extra money on it, but now my only debt is a 0% car loan. Even with my semipathological aversion to debt, I can't see myself paying that one off early.

Of course, I suddenly don't have that hefty tax deduction...

lookout123 · 12-06-2006, 12:50 PM

good for you HM. now you need to turn around and get a hefty HELOC for a safety net. you can keep a zero balance on it, thus maintaining your debt free lifestyle while still keeping access to what is most likely your largest asset.

Shocker · 12-06-2006, 12:56 PM

Awesome job on the mortgage! If I might suggest though, if you have a 0% auto loan...milk that one for all its worth. Basically think of that as free money, and even in a basic savings account earning 1%, you've got a net benefit for yourself. Basically by paying it off now, you would be loosing money (even if it feels like you would be saving money)

glatt · 12-06-2006, 01:10 PM

Good job HM!

Happy Monkey · 12-06-2006, 01:23 PM

Thanks all!

Quote:

Originally Posted by lookout123

good for you HM. now you need to turn around and get a hefty HELOC for a safety net. you can keep a zero balance on it, thus maintaining your debt free lifestyle while still keeping access to what is most likely your largest asset.

Interesting. I'll look into that. A one-time $1000 (or so) fee for a decade or two of hundreds-of-thousands-of-dollars-worth of credit sounds like a deal (if I understand my quick Googling correctly).

Quote:

Originally Posted by Shocker

Awesome job on the mortgage! If I might suggest though, if you have a 0% auto loan...milk that one for all its worth. Basically think of that as free money, and even in a basic savings account earning 1%, you've got a net benefit for yourself. Basically by paying it off now, you would be loosing money (even if it feels like you would be saving money)

Yeah, the only money I'd be saving is stamps. I'll be bumping up my 401k instead.

Elspode · 12-06-2006, 02:09 PM

Dude, that is *awesome*. Congratulations on being disciplined enough to enhance your personal security to such a great degree. I am totally impressed.

xoxoxoBruce · 12-06-2006, 02:47 PM

Way to go HM, great feeling isn't it?

I had about a dozen years to go when I refinanced, upping the payment and reducing the term, then basically forgot about it.
One day a letter arrives saying the payment was X instead of Y.
WTF.... I call the bank ready to raise hell and was calmly informed the payment changed because it was the last one.
Doh.

Happy Monkey · 12-06-2006, 02:56 PM

Heh, that's what I was expecting to get. Instead, I got this three-page document printed in courier on onion paper saying to mail the final payment and some additional documentation to a different address than usual, and a prepaid envelope! Apparently the final payment is a completely different department!

Dagney · 12-06-2006, 03:05 PM

Merry <insert winter holiday of your preference here>

You just bought yerself a house!

Congratulations - hard work with a good and profitable reward.

K

Griff · 12-06-2006, 03:32 PM

Yeah, nice present to yourself.

Clodfobble · 12-06-2006, 03:56 PM

Congrats, HM! And even more congrats on keeping the same lifestyle and bumping up the 401K with the extra money. Your self-discipline is admirable.

Happy Monkey · 12-06-2006, 04:03 PM

Now, I never said I wouldn't buy myself a snazzy new computer!

Once I recover from my final push and the holiday season, of course. My liquid assets are gonna be pretty low for a while...

Tonchi · 12-06-2006, 04:13 PM

Wow! I am so totally impressed

Good for you!

Pie · 12-06-2006, 04:14 PM

Congrats, HM! Now, maybe you can look into that vacation property you always wanted... The tax deduction is great, and the real estate market still has upside, if you choose wisely.

Beestie · 12-06-2006, 04:34 PM

Awesome job, HM. I think lookout's suggestion is a very good one. Typically, you have to pay mortgage tax on the amount of the credit line at closing as though you were taking out the entire amount. I'd bite the bullet and get a line for as much as you can. Nothing like tax-free debt.

12-06-2006, 12:40 PM	#1
Happy Monkey I think this line's mostly filler. Join Date: Jan 2003 Location: DC Posts: 13,575	No Mortgage! I just sent off my final mortgage payment! It took me 7.5 years of putting all of my extra money on it, but now my only debt is a 0% car loan. Even with my semipathological aversion to debt, I can't see myself paying that one off early. Of course, I suddenly don't have that hefty tax deduction... __________________ _________________ \|...............\| We live in the nick of times. \| Len 17, Wid 3 \| \|_______________\| [pics]

12-06-2006, 12:50 PM	#2
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	good for you HM. now you need to turn around and get a hefty HELOC for a safety net. you can keep a zero balance on it, thus maintaining your debt free lifestyle while still keeping access to what is most likely your largest asset. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

12-06-2006, 12:56 PM	#3
Shocker Knight of the Oval-Shaped Conference Table Join Date: Apr 2006 Location: Your Mom's house Posts: 378	Awesome job on the mortgage! If I might suggest though, if you have a 0% auto loan...milk that one for all its worth. Basically think of that as free money, and even in a basic savings account earning 1%, you've got a net benefit for yourself. Basically by paying it off now, you would be loosing money (even if it feels like you would be saving money) __________________ “I live only for posterity. Death is nothing, but to live defeated and without glory is to die everyday." - Napolean Bonaparte

12-06-2006, 02:09 PM	#6
Elspode When Do I Get Virtual Unreality? Join Date: Dec 2002 Location: Raytown, Missouri Posts: 12,719	Dude, that is awesome. Congratulations on being disciplined enough to enhance your personal security to such a great degree. I am totally impressed. __________________ "To those of you who are wearing ties, I think my dad would appreciate it if you took them off." - Robert Moog

12-06-2006, 02:47 PM	#7
xoxoxoBruce The future is unwritten Join Date: Oct 2002 Posts: 71,105	Way to go HM, great feeling isn't it? I had about a dozen years to go when I refinanced, upping the payment and reducing the term, then basically forgot about it. One day a letter arrives saying the payment was X instead of Y. WTF.... I call the bank ready to raise hell and was calmly informed the payment changed because it was the last one. Doh. __________________ The descent of man ~ Nixon, Friedman, Reagan, Trump.

12-06-2006, 01:10 PM	#4
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	Good job HM!

12-06-2006, 02:56 PM	#8
Happy Monkey I think this line's mostly filler. Join Date: Jan 2003 Location: DC Posts: 13,575	Heh, that's what I was expecting to get. Instead, I got this three-page document printed in courier on onion paper saying to mail the final payment and some additional documentation to a different address than usual, and a prepaid envelope! Apparently the final payment is a completely different department! __________________ _________________ \|...............\| We live in the nick of times. \| Len 17, Wid 3 \| \|_______________\| [pics]

12-06-2006, 03:05 PM	#9
Dagney The Prodigal Brat Returneth Join Date: Dec 2002 Location: North Cackalacky Posts: 1,107	Merry <insert winter holiday of your preference here> You just bought yerself a house! Congratulations - hard work with a good and profitable reward. K __________________ The Constitution gives every American the right to make a total fool out of himself. But that doesn't mean you need to.

12-06-2006, 03:32 PM	#10
Griff still says videotape Join Date: Feb 2001 Posts: 26,813	Yeah, nice present to yourself. __________________ If you would only recognize that life is hard, things would be so much easier for you. - Louis D. Brandeis

12-06-2006, 03:56 PM	#11
Clodfobble UNDER CONDITIONAL MITIGATION Join Date: Mar 2004 Location: Austin, TX Posts: 20,012	Congrats, HM! And even more congrats on keeping the same lifestyle and bumping up the 401K with the extra money. Your self-discipline is admirable.

12-06-2006, 04:03 PM	#12
Happy Monkey I think this line's mostly filler. Join Date: Jan 2003 Location: DC Posts: 13,575	Now, I never said I wouldn't buy myself a snazzy new computer! Once I recover from my final push and the holiday season, of course. My liquid assets are gonna be pretty low for a while... __________________ _________________ \|...............\| We live in the nick of times. \| Len 17, Wid 3 \| \|_______________\| [pics]

12-06-2006, 04:13 PM	#13
Tonchi Victim of gravity Join Date: Mar 2005 Location: Hiding in plain sight Posts: 1,412	Wow! I am so totally impressed Good for you! __________________ Everything you've ever heard about Fresno is true.

12-06-2006, 04:14 PM	#14
Pie Gone and done Join Date: Sep 2001 Posts: 4,808	Congrats, HM! Now, maybe you can look into that vacation property you always wanted... The tax deduction is great, and the real estate market still has upside, if you choose wisely. __________________ per·son \ˈpər-sən\ (noun) - an ephemeral collection of small, irrational decisions The fun thing about evolution (and science in general) is that it happens whether you believe in it or not.

12-06-2006, 04:34 PM	#15
Beestie -◊\|≡·∙■·∙≡\|◊- Join Date: Feb 2003 Location: Parts unknown. Posts: 4,081	Awesome job, HM. I think lookout's suggestion is a very good one. Typically, you have to pay mortgage tax on the amount of the credit line at closing as though you were taking out the entire amount. I'd bite the bullet and get a line for as much as you can. Nothing like tax-free debt. __________________ ♠ ♥ ♣ ♦

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