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Just paid off our house! (1 Viewer)
- Thread starter ZenMaster
- Start date
KCitons
Footballguy
I'm 42, wife is 46. No kids.
We're planning to retire in ~5 years. We're hoping to buy a house in Lake Tahoe next spring/summer and rent/AirBNB until we're ready to move out there.
Doctor Detroit
Please remove your headgear
Nicely done sir. 
Judge Smails
Footballguy
Congrats! Man that takes a lot of pressure off of life. Meeting with new financial planner next month, and making decisions on mortgage will be a big decision. I don't want that over my head in retirement. Have a relatively low amount by FBG standards, only 11 years left on a 2.75% note, but a payment is a payment. I could sell the thing and not worry about it, but a mortgage burning party would be a great aspiration, deduction or no deduction.
Nick Vermeil
Footballguy
Vasectomy thread is calling you GB. 1 mill note and two kids here. I will likely dump out in a few years when the sale price doubles what I owe. Then I'll be looking in Tahoe next door to OP.
Otis
Footballguy
I actually want to add one more. I'm a glutton for punishment. But after that they can just cut my #### off.
avoiding injuries
Footballguy
I debated doing this, but my portfolio is doing greater than my mortgage rate. Out of curiosity, why did you pay off your primary residence and not the rental? I just took out a HELOC at 2.99 to payoff one of my rentals that was at over 5%.ZenMaster said:
Only debt we have now is a mortgage on our rental property.
What a great feeling.
The Z Machine
Footballguy
Congrats
fantasycurse42
Footballguy Jr.
Congrats :thunbup:
MaxThreshold
Footballguy
Ahhh...of course.ZenMaster said:
Congrats, though. I just bought a house so in another 30 I'll be where you are. Wish me luck!
MaxThreshold
Footballguy
Are you renting?beavers said:
MaxThreshold
Footballguy
Very Nice! Some good work there!beavers said:
We wanted to pay off our primary residence before taking on the retirement house. I know the math says to go with the higher interest rate payoff first but we prioritized peace of mind to allow us to move forward with the house in Tahoe. If we have our primary house paid off and one or both of us lost our jobs, we could continue to make money on our current rental and not worry about our primary mortgage It's unlikely that both of us would lose our jobs but you never know.
I understand the argument for keeping a relatively low interest-rate loan vs. a portfolio that will likely perform better. We didn't want to take on a second (larger) mortgage until the first was paid off. We could afford to do it but took the less risky path.
We gave up some $$ for sure by paying off our house but we're OK with that.
ghostguy123
Footballguy
I can't wait to post a thread with this title 
I had been thinking about selling my rental property and then pay off my house. Not even sure why, maybe just so I can say I don't have a house payment. Who knows.
I had been thinking about selling my rental property and then pay off my house. Not even sure why, maybe just so I can say I don't have a house payment. Who knows.
James Daulton
Footballguy
This is proof that kids basically make everything about life worse.
FUBAR
Footballguy
Wife and I have had this discussion for a few months now (since we bought in April). I prefer just paying an additional hundred or less each month, she would ramp it up to an additional $350 (1650/month mortgage at 3.25%). So far she hasn't pushed too hard but every so often she'll ask if I think it's smart to do so - my answer hasn't changed, it would feel good to have the house paid off but we want to build our cabin in 5 years so that takes priority. I'd rather pay for the construction in cash and keep the mortgage, then work off the mortgage.
Either way, I hope to be in your shoes in 15 years (I'll be 55 and our 5th child should be headed to college).
pantherclub
Footballguy
just curious how are you planning on paying for healthcare for 15ish years?ZenMaster said:
This is a huge factor my wife and I are trying to navigate around.
matuski
Footballguy
Whoa. This is why I couldn't leave Texas. Make decent $, but still couldn't afford that kind of life. If I bought a 2 mill home my kids would be eating ramen on the floor. My fairly nice 2300 sqft home is the smallest around, sitting on 140k left on note.
I'm half way through design selections on new high end 3800-4ksqft custom build (600k), and I'm starting to think that headache isn't worth it.
Paying off the 140k and just coasting to retirement is getting more and more tempting.
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We checked about six months ago for what it would cost for a 'silver' health insurance plan for the two of us and it was ~$1400/month. We've budgeted $2000/month for health care in our retirement budget but we expect health care to undergo some significant changes with the new regime. It may delay our early retirement plans if costs increase by more than we've budgeted.
It's also possible that we'll find second careers after we've moved to Tahoe to help with health insurance.
Health care cost is our biggest concern about early retirement.
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Aerial Assault
Footballguy
Congratulations, ZM! That has got to be a fantastic feeling. 
pantherclub
Footballguy
$24000/year is a lot of money to budget for. Thats a quarter million or more you will need. Oof healthcare is rough man. One or two mishaps or strokes of bad luck and you might wish you had kept working for a bit more.
I would look at a low stress job to compensate like you said.
The Man With No Name
Footballguy
Congratulations. I know it is a great feeling because my last house payment was in May. Awesome having that largest lifetime debt gone. Have practically nothing for retirement now but am starting to put some back. And I recently started a secure job I can retire at and will be able to transfer anywhere in the USA if I want - not planning on doing it, but it's there.
fred_1_15301
Footballguy
It's a great feeling to be debt free. My wife and I paid off our first house last February after living in the house 7 years. But then we moved to a new house 8 months later. It was really nice being debt free for 8 months.
James Daulton
Footballguy
$1,400/mo for health insurance for healthy folks under 50? $17k per year would cover a lot of healthcare outside of a lengthy hospital stay. Is it possible to just buy some kind of catastrophic policy?
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We've also considered that. We're both in good health (as of now) and as we get closer we'll start taking a closer look at our options. We're still at least 4 years away so we have some time, and we're curious to see how health care changes over that time..
glvsav37
Footballguy
This is us. We built a modest house back in 2002, no kids. I was someone who moved all the time, 8 or so different house growing up, but each time my parents upgraded and made $$. My wife lived in her house her whole life.Whoa. This is why I couldn't leave Texas. Make decent $, but still couldn't afford that kind of life. If I bought a 2 mill home my kids would be eating ramen on the floor. My fairly nice 2300 sqft home is the smallest around, sitting on 140k left on note.
I'm half way through design selections on new high end 3800-4ksqft custom build (600k), and I'm starting to think that headache isn't worth it.
Paying off the 140k and just coasting to retirement is getting more and more tempting.
Flash forward to today, 2 kids later (10 and 6) and with the market rollercoaster as it is, we looked at moving to a bigger house, but there was nothing in our comfort zone that we could find. And anything we went toward would have had us moving from our current 15-year note (10 years left on 2.75%) to a 30 year at who knows the interest rate. Plus my wife retires from her teaching position in 15 years.
So after much discussion and soul searching, we realized the big beautiful house is just not gonna happen for us, and with the kids at the ages they are, there is no need to pay for a huge house longer then they will be (hopefully) living there. So we are investing (cash, no refi or home equity) in a modest extension to our current house to give us more elbow room and look forward to being able to enjoy not having a house payment in a few years and look toward retirement w/o that bill.
At 42, if I was to take out a new 30-year, I'd be at least 72 by the time I paid it off and thats just not gonna happen.
NewlyRetired
Footballguy
Congrats Zen! Paying off early is such an awesome feeling. It was a key component for us being able to retire early.
matuski
Footballguy
I am debating between the 15 and 30 year option on new home.
I would assume we would sell and downgrade again in 8-10 years, but this market hasn't seen anywhere near full recovery and I am fairly confident we would make a good return on the house over that time. The neighborhood I am about to build in has many >$1 mill homes. On the other hand, I pay $1800 (with taxes and insurance) a month on my current home and the "easy mode" that provides is something I think we are taking for granted.
I don't know what the right answer is.
glvsav37
Footballguy
I hear ya...its a tough and personal call.
We went to a 15 when the rates plummeted a few years ago and it was only $200 or so more per month with the new % rate, so we jumped at it. Looking at moving today, we would have been giving away a lot more in interest and terms that we just were not comfortable with, with our current finish line somewhat in view.
Plus, my wife retiring in 15 years was a huge factor b/c it would have been right in the middle of a new note. I want her to able to enjoy the opportunity to retire from 30+ years of teaching and not feel the need to rush out and find something ASAP.
Yes, I could have went to the larger house and sold once the kids left, but I am very conservative when it comes to things like that after watching my local market go for a huge rise and then painful tumble and IMO I just didn't want to risk in. I'm going with the bird in the hand strategy when if my house is paid off ands if I need to sell while the market dips say 20-30%, I'll still make money. And while my house is paid off, i'm banking my former mortgage payment.
My SIL bought a huge house right at the top of the market for something like $850K. Today it is so underwater they can't even walk away from it. Her husband had a really good opportunity out of state but couldn't take it b/c they couldn't do anything with the house. Thats something i'm not doing.
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Grace Under Pressure
Footballguy
Nicely done on the mortgage. Definitely play it year-by-year on healthcare, there should be some changes afoot there.
Grace Under Pressure
Footballguy
jamny
Footballguy
Yeah, we went from a 30 to a 15 back in the mid-90's when rates dropped and we were confident we could tighten our belts just a bit more to pay it off. It was worth a bunch of years of hamburger helper and brown bagging lunch. Plus, our house went from $170k in 1994 to probably $700k now. We are debating buying a condo and bringing my mom up from Dallas but I'm having a tough time convincing my mom to make the move.
glvsav37
Footballguy
nice...thats a nice return. I can't see my house ever going up that much in value.
I remember a funny story with my 1st mortgage. We bought our home when I was 28. My SIL had the 1st grandchild in the family and on the day she brought her home I got my 1st set of mortgage overview docs in the mail. So I grab it out of the mailbox and figure i'll review it at my SIL house.
So there I am, holding the 1st, brand new infant grandkid in my arm, looking at my new mortgage paperwork, seeing the payoff date and then it hits me....This kid is going to be older then I was right now, by the time I pay this house off!!??!! WTF??!!
LOL...thankfully, (hopefully) it won't be the case thanks to refis but holy cow, I need to sit down and take a drink after that one.
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AcerFC
Footballguy
This is exactly where I am right now with my Hasidic issue.
I have less than 10 years left on my note. I am 38, will be 39 next week. My wife and I both will be done teaching in the next 15-17 years.
The home we have right now is Awesome. Big and we made it beautiful. The only issue we have is the Hasidic problem that I have chronicled here.
So do we stick it out and have our house paid off while we are both under 50. Or do we sell the house and move to house where we will be forced to take a 30 year note out. Decisions, Decisions, Decisions.
**** Moving to a smaller less expensive house is not an option for us. If that makes us #######s, so be it.
Congrats to ZM. Awesome news
