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Forum » Paying off the house early
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Thread: Paying off the house early

post 1698211933 02-22-2024, 10:14 AM
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Paying off the house early

Do you pay off your house early. How early? First house wife and I were both working and now kids, paid 30 yr loan off in 5. 10 months into second home 30yr loan. Looking to put extra and pay it off sooner as we can.
post 1698212023 02-22-2024, 10:17 AM
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Good luck man, this is fantastic financial discipline. I wish more people I knew growing up had the knowledge about money that you do. For example, my dad bought his home in the 90s and it’s still not paid off. It should’ve been long ago.
post 1698212033 02-22-2024, 10:18 AM
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30 year loan paid off in 5?

did you not do anything and eat just rice/beans for 5 years?
post 1698212473 02-22-2024, 10:34 AM
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Go heavy the 1st 5-10 years.....that's when the most interest accrues.

Been in this house for 3 years, already knocked 7 years off the loan. Low rate, double payments.....the biggest part of it is buying way cheaper than we could afford.
post 1698212683 02-22-2024, 10:42 AM
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I pay extra towards the principal every month. At my current amount the mortgage calculator figures I will pay it off about 14 years early on my 30 year mortgage. However depending on your mortgage rate it may not be too beneficial. I got a great rate a few years ago before they got up into the 7's. The money I pay extra each year would earn me more in interest if I invested it into the stock market, than I currently save by paying off my house early, but I figure paying off my house is the safe bet. Just in case the market tanks sometime soon at least I will be free and clear on my house.
post 1698212873 02-22-2024, 10:47 AM
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My mortgage is only 2.8% for like the next 28 years so I think it would be stupid to pay it off ASAP. My investment returns have been higher then the market average of 10% since inception so I'd be losing massively to pay my house out early. I also could pay my house off today if I wanted to but again I just think that would be dumb at the interest rate I've locked in.


I'll keep my money in cash/crypto/stocks and pay my 2.8% in interest.
post 1698212903 02-22-2024, 10:47 AM
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If you have a 3% mortgage, why would you pay that off early? Cash can be used in so many other better ways.
post 1698212993 02-22-2024, 10:51 AM
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Being able to pay off any kind of debt early is of course a good situation to be in and comes with other benefits like peace of mind, but it's possibly not the optimal way to use the money if you're willing to take on some risk
post 1698214483 02-22-2024, 11:35 AM
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Our rate is 6.5 so we'd like to pay it down so we are not sinking money into interest payments. When there has been extra we've put it on. It's awesome to see years fall off, They really fall off in the early part when your payment is mostly interest.
post 1698214673 02-22-2024, 11:39 AM
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Way to go. Now you can invest the monthly payment worry free!
U
post 1698215323 02-22-2024, 11:56 AM
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I could pay off my rental right now if I wanted with my cash parked in SWVXX, but my rate is 2.25% and the cash is currently earning 5%+ risk-free. So there is no point.

I could pay my primary residence off as well, which has a rate of 7%, but would have to liquidate investments first. I'm still making more off of those, so I still won't do it.
Always Neg Back Crew.
post 1698215763 02-22-2024, 12:07 PM
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Originally Posted By Lefticle⏩
I could pay off my rental right now if I wanted with my cash parked in SWVXX, but my rate is 2.25% and the cash is currently earning 5%+ risk-free. So there is no point.

I could pay my primary residence off as well, which has a rate of 7%, but would have to liquidate investments first. I'm still making more off of those, so I still won't do it.
I'm in pretty much the same boat. House is paid off but truck is 0%, so nothing down and riding it to the full term.
"Bones heal, pain is temporary, and chicks dig scars" - Evel Knievel
post 1698216193 02-22-2024, 12:15 PM
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Depends on the interest rate. At 8 percent he’ll yeh but I’m at 2.6 so **** no. That’s basically free money. Ded fkn srs. You make better returns with stock market or bonds if you want to keep it safe
post 1698216293 02-22-2024, 12:20 PM
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Originally Posted By Lefticle⏩
I could pay off my rental right now if I wanted with my cash parked in SWVXX, but my rate is 2.25% and the cash is currently earning 5%+ risk-free. So there is no point.

I could pay my primary residence off as well, which has a rate of 7%, but would have to liquidate investments first. I'm still making more off of those, so I still won't do it.
This way of thinking is so stupid. It's revolved around greed and over-complication. Eliminate ALL debt and build wealth. (Super Ded fkn Srs)
post 1698225993 02-22-2024, 04:37 PM
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Hell yes! Bought what I could afford, paid it off in 4 1/2 years. Now I can save for awesome vacations, invest for the future, and take care of my nephews' 529 plans every month instead of forking over yet another mortgage payment.
post 1698226133 02-22-2024, 04:39 PM
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Originally Posted By gmenfan40⏩
This way of thinking is so stupid. It's revolved around greed and over-complication.Eliminate ALL debt and build wealth. (Super Ded fkn Srs)
Pls explain, mathematically, how this is stupid.
Always Neg Back Crew.
post 1698226413 02-22-2024, 04:46 PM
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Originally Posted By Lefticle⏩
Pls explain, mathematically, how this is stupid.
Chasing a short-term 3% spread, while giving up 10+% long-term investing with no mortgage... is stupid.

The "risk free" 5% return didn't exist when you took out a 2.25% mortgage, so you had to hang around in debt, hoping for rates to change sometime in the future.
post 1698226473 02-22-2024, 04:48 PM
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LOL No. That's silly if you have a killer interest rate. I'd rather buy other property.
post 1698226523 02-22-2024, 04:50 PM
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Mortgage interest on a rental property is also tax deductible so
post 1698226843 02-22-2024, 04:57 PM
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Pay it off as soon as you can. Trust me. When **** hits the fan you'll be happy you did.
post 1698227003 02-22-2024, 04:59 PM
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Absolutely not. Interest is tax deductible.
post 1698227023 02-22-2024, 05:00 PM
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renting out a house is terrible idea for an investment

one wrong tenant can **** up YEARS of profit
post 1698227143 02-22-2024, 05:02 PM
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  1. Destor
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Originally Posted By WasThaBestMan⏩
renting out a house is terrible idea for an investment

one wrong tenant can **** up YEARS of profit
There’s risk in all sorts of businesses that generate decent money
post 1698227343 02-22-2024, 05:07 PM
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Originally Posted By Destor⏩
There’s risk in all sorts of businesses that generate decent money
decent?

i wouldnt say a few hundred dollars more a month then mortgage/insurance/property tax + tenant is suppost to pay utilities is "decent money"

that is super risky
post 1698229043 02-22-2024, 05:41 PM
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Originally Posted By WasThaBestMan⏩
decent?

i wouldnt say a few hundred dollars more a month then mortgage/insurance/property tax + tenant is suppost to pay utilities is "decent money"

that is super risky
Money paid into a mortgage builds equity brah

Having a tenant paying utilities is also a risk because you as the property owner are ultimately responsible and it's not unheardof for tenants to leave owners with massive unpaid utility bills
post 1698229513 02-22-2024, 05:53 PM
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Originally Posted By FinBra⏩
Absolutely not. Interest is tax deductible.
Tax-deductible doesn’t mean you don’t pay that interest. It just means you don’t pay income tax on that amount of money. So basically you’re getting something like 25% of that interest back.


That being said, if your mortgage rate is somewhere near the historic lows then it probably makes more sense to take what you would overpay on your mortgage and instead invest that money. Your rate of return will be higher than the interest rate you’d be saving on.
And relief washes over me in an awesome wave
post 1698229703 02-22-2024, 05:57 PM
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Yeh the tax deductibility is just a bonus adding on to the other dynamics

You also get to repair or upgrade the place and write off those costs, again it's still a cost but that can save you a good amount of tax $$$ while also maintaining/increasing the value

Add that in many cases people are probably taking tax hits to pay off a property early, selling off investments or whatever else
post 1698266373 02-23-2024, 03:46 PM
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Originally Posted By Destor⏩
Mortgage interest on a rental property is also tax deductible so
Originally Posted By FinBra⏩
Absolutely not. Interest is tax deductible.
Pay $20,000 in interest to "save" $4,800 on taxes...?
post 1698267083 02-23-2024, 04:05 PM
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How u do it in 5
post 1698267213 02-23-2024, 04:07 PM
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Ive always read that paying off a house early is dumb. But wouldnt paying off the house early be the fastest way to escape wageslaving? Rent is a good 35% of our income. With that gone you can fuk off to a minimum wage job.
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