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Is anyone else aiming to be MF before age 40?

135

Comments

  • The flip side of doing this, is that you are accepting a lesser house (than you could achieve by taking a bigger / longer mortgage).

    The opposing strategy is to buy the very best house you can afford while you have small kids, with the loose plan to sell up and live in something smaller, mortgage free, when you are old and they have left home.

    Of course, your house now may be perfectly adequate, in which case great, spend the money on other stuff or retire early!
  • The flip side of doing this, is that you are accepting a lesser house (than you could achieve by taking a bigger / longer mortgage).

    The opposing strategy is to buy the very best house you can afford while you have small kids, with the loose plan to sell up and live in something smaller, mortgage free, when you are old and they have left home.

    Of course, your house now may be perfectly adequate, in which case great, spend the money on other stuff or retire early!

    Our mortgage should be finished in 18 months time and after that we plan to save for another 2 years to upgrade without needing another mortgage. We currently have a 3-bed detached and want to upgrade in the future to a 4-bed detached. We don't have children so a smallish upgrade like that will be enough for us permanently and we live in the north where prices aren't too bad.
  • HelenDaveKids
    HelenDaveKids Posts: 3,177 Forumite
    Part of the Furniture Combo Breaker Mortgage-free Glee!
    edited 28 December 2012 at 9:48PM
    We were morgage free mid thirties and had extended and repaid again at that. We have a few years morgage free (safaris with the kids etc) before we saw "the one" and are now going through it again. Did have a whole house sized deposit as well as reasonable savings to add to it but still went from zero to owing 100k just over 2 years ago. Due to renovation (spending 15k more than borrowed)have only started paying extra since last December. Im 39 and fully intend to be morgage free before i hit 45. We have 3 kids and its tough but I don't like it hanging over me plus its my money and I dont want the bank having it in interest.

    When we borrowed this time, it was always that we would OP the second the renovation had finished. It was the endowment shortfall letter that first frightened us into OP'ing all those years ago and i still cant believe that people dont OP. When we were MF, we continued to save the exact same as our morgage and OP amount each month as it was habit, but instead it paid for extra special holidays etc.
    Morgage till Nov 30 GOAL MFW Sept 2016
    Aug 11 - £100k Aug 2016.... It's GONE!!!!!
    2014 GOAL HIT 5 Stone! 2016 GOAL to be a MF marathon runner.
    "A goal without a plan is just a wish"
  • Buffett wrote: »
    The younger we are all free of indebtedness to the banks the better! I'm really happy to see so many 20-somethings here already looking to overpay.

    Remember, the earliest over payments have the biggest impact!

    Ha it doesn't feel that way at the moment!!! My monthly interest is £300 and it feels like I'm getting nowhere even with monster lump sum overpayments (well to me)

    Dread to think what my balance would be without the overpayments!!!!!! I'm about 1.5 years into mine.
    Mortgage 1: May 2012 £90,000 April 2020: £47,000
    Mortgage 2: £270,000😱 Jan 2019 £253,000 April 2020
  • Cornucopia
    Cornucopia Posts: 16,554 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The flip side of doing this, is that you are accepting a lesser house (than you could achieve by taking a bigger / longer mortgage).

    Not really. The typical person pays as much for their mortgage as they do for their house.

    Therefore, getting to mortgage-free status early reduces that cost, and there is no reason not to upgrade further from that point - through the purchase of a second home, for example.
  • sweetdaisy
    sweetdaisy Posts: 1,249 Forumite
    Tenth Anniversary 1,000 Posts Combo Breaker
    I am aiming to pay off the mortgage by the time I am 42 years old - 4 years earlier than the original term. I would love to get it paid by 40 years old as it will be 2020 (and I like the sound of that!) but think it is being too optimistic! We have an Offset mortgage with just over 13 years remaining on the term, so we will wait and see if I can reduce the term further.
  • Sorry it's quite late and I am off on holiday, for interest paid out of repayment is it just the rate you pay on the balance of mortgage is the interest for a year?

    So I owe £100k at 4.89% so I pay £4890 interest in first year?! Would that be right? Almost £100 a week.
    :eek:Living frugally at 24 :beer:
    Increase net worth £30k in 2016 : http://forums.moneysavingexpert.com/showthread.php?p=69797771#post69797771
  • QB_Wolf
    QB_Wolf Posts: 722 Forumite
    As I turned 38 last Sunday, I think it's fairly unlikely that I'll be mortgage free by 40.

    Never mind. :rotfl:
    Start Date 16/09/2015
    Original amount outstanding = 225,000 Current amount outstanding =199,812
    Original LTV = 64% Current LTV = 49%
    Original Pay Off Date = Sep' 36 New Pay Off date = Sep' 36
    Original Dly Int = 17.17 New Dly Int = 17.17 Total OP = £1319.31
  • I dont even have a mortgage yet but plan to be mortgage free by 40! I am currently 27 and hope to buy in the next 18 months, just waiting on the right house!
    Best Wins - New York Trip, going Nov 2014: £350 House of Frazer Vouchers: £70 Handbag: Nitro Circus Live Tickets
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