a friend just paid off his mortgage

mustang121

Me and my fianc! are the type of people who being shackled to debt with our mortgage being our only debt.


We cannot wait to be free, but still have 23 years to go.


Will try to make a few overpayments when we have the chance, but at the moment we are saving for wedding, home improvement and in the future a child.


Whether, in the future, we move to a bigger house or stay put and rush to become mortgage free... I have no idea. Guess it depends on Job prospects.

lisyloo

I see you're confident about reaching retirement age!
Make sure you have some money to enjoy your life until then

A very good point.
20% of us will die before retirement, so whilst it's important to save, it's also important to enjoy yourself as well.

michaels

lisyloo wrote: »

A very good point.
20% of us will die before retirement, so whilst it's important to save, it's also important to enjoy yourself as well.

Ouch...where does that figure come from? Hopefully it reduces as retirement age approaches?!

LydiaJ

I was paying more in interest than I would get on savings, and I'm not temperamentally inclined to investments that are either complicated or risky, so it made sense to pay it off. It felt great.

As a single parent working part-time, I don't exactly have a colossal income, so not having that outgoing payment every month made everything feel a lot easier. Now that my work are cutting my hours back a bit for the academic year that will start in September (just for timetabling reasons and changes to staffing elsewhere in my department, not because they don't like me) it's even better to feel I own my house outright and a drop in income doesn't threaten anything.

You can find lots more posts about people paying off their mortgages on the Mortgage-Free Wannabe board. If you're considering the idea of paying yours off sooner rather than later, you might find it interesting to have a read over there.

tanith

I'll let you know soon I have two more payments to make and I will be free.....

globalds

I paid mine off last month.

The payments have been very low for the last few months but I am glad the overpayments have stopped.

To be honest I feel like I have just cleared my desk .. Ready for the next project to land on it.

Loughton_Monkey

floridaman wrote: »

Was around at a friends house today and he has just made final balance on his mortgage. He sat in a chair and was giggling uncontrollably for about 15 mins. I asked if he was ok and he said he was relived to be mortgage free and it was a release for him. I am yet to pay mine off - just wondering when people make that final payment what it feels like? Does it feel a weight off your mind or is it like any other purchase?

Can't see why he was laughing....

Until my very last mortgage in 1997, my previous ones were all very large. Large enough to make the pips squeak. Never stayed in a house more than 10 years before up sizing.

The strategy behind this is maximising investment in a tax free asset (house equity) and in my case, I will soon grab half of that back when I move to a slightly smaller house in a substantially cheaper area. Lovely Jubbly!

If he's bunging the equivalent into S&S ISA's instead, then maybe he'll come out OK.

Each to their own.

sebadee

lalman wrote: »

I have 2 btl mortgages and getting up to 40% equity and then switching to interest only.(currently at 37% and 26%).


The thought of clearing them off does appeal to me as all income apart from repairs would be mine... (and tax)


- but with income tax benefits just can't justify it.


I am buying a home next year that's 3x mine and my partners joint salary. I am really scared about the mortgage as the thought of owing that much money isn't something I ever wanted.

Well that's just greedy. You already have your own home, and two others properties, why take on a third, especially if you feel your stretching yourself. Leave it for some FTB's instead.

pathtofreedom

lisyloo wrote: »

Sorry, I don't follow your logic.
Are you saying you'd take money from your savings to pay off your mortgage because you are worried that the bank might !!!
That sounds perverse to me.
Of course it's your choice to do as you please, but to turn down a profit for the reasons you've given is bonkers.
.

No I think you miss understand what they were saying. They aren't worried the bank will just call in the debt and use money from their saving account or something. They are talking about what happened in greece for example as part of their bailout.

lisyloo

They are talking about what happened in greece for example as part of their bailout.

Thanks for the explanation.
It's a very risk averse stance to be worried about losing savings in the UK, but a valid point nevertheless.