How to be mortgage free after 8 years

Caixta

Miss_Penny_Pincher wrote:

That's exactly how I feel at the moment too!!
Will yours let you overpay as much as you want? Ours will only let me pay a maximum overpayment of £500 a month so any extra I'm saving to pay off as a lump sum at the end of the 2 years!! I'm hoping to pay it in 7 years but depends on circumstances, interest rates etc I suppose!

Me three!!!

jonnydoe

To sum it up...

Earn lots of money pay off mortgage early and earn even more money from interest saved..

OR

Earn no money and borrow on credit cards and earn even less money through interest lost...


It's a funny old world!

aliwatts

my mortgage has a 10% maximum overpayment per year, or makes charges. I have 16years left, hopefully will bring it down to 10 years if not less.

keep going all you crazy savers !

Thefunkygibbons

jonnydoe wrote:

To sum it up...

Earn lots of money pay off mortgage early and earn even more money from interest saved..

OR

Earn no money and borrow on credit cards and earn even less money through interest lost...


It's a funny old world!

Not really

This whole site is about breaking through paradigms

Treating a mortgage as a special debt is a paradigm

That is wrong, it is just another debt to be cleared as soon as possible

halloweenqueen_2

I'm surprised many people say they are debt free and then talk about their mortgage. A mortgage is the biggest debt I'll ever have (hopefully). Until its completely paid off the bank owns my home and there is no real security there. Its unlikely the bank will suddenly decide they want to call in the loan, but i don't want them to have ,ore of my money than they absolutely have to, I'm not earning money paying off my mortage debt early, i'm saving some of the interest money. I don't earn loads of money either, Mr HQ pays the mortgage and I am making overpayments by doing various jobs and selling off unwanted items. My mortgage does let me pay off as much as I like, they said I can set up a regular standing order if i want, but most of my odd jobs are paid by cheque so i just shove them in the bank.

jonnydoe

Thefunkygibbons wrote:

Not really

This whole site is about breaking through paradigms

Treating a mortgage as a special debt is a paradigm

That is wrong, it is just another debt to be cleared as soon as possible

I can't really see what was wrong with my statement of fact but I'll agree to disagree..

Thefunkygibbons

Its all good

But I think as the mortgage pig thread shows, the small amounts add up as well, so I would not want people to dismiss the idea because they only think it is for people with shed loads of money

jonnydoe

Oh yes totally agree, every little helps and cutting out the daily cappucino will make a lot of difference, Good luck to all who have the discipline to persevere, it will take time but will pay dividends

I've foregone my luxury of getting a large screen hd lcd television for the world cup saving me best part of 2k which will go into overpaying the mortgage, maybe when I've paid the mortgage off and have more financial security I'll get the "not yet invented" 3d tv !

CaptainSensible

Totally enthralling and entertaining thread, Funky you are a legend and example to us all.

I have one question. I have natural Funky-like tendencies when it comes to my philosophy on saving, but I also have one of those under-performing endowments to cover my loan of approx $40K.

I have been letting the loan side run its natural course, whilst accumulating my spare cash in savings and investments as a sort of DIY offset. I have been tempted to shove a dollop of cash on to the loan to lower the interest payments (I have already done this to bring the loan down to the expected value of the endowment return). However, I have been afraid to go the whole way since I have been under the impression that the entire return from the endowment would be taxable if it wasn't offsetting a mortgage. Since I am (hopefully) expecting to be still in paid employment when that glorious day comes, I don't want to then be paying a chunk of it away in tax.

I noticed that a number of people on this thread are paying off endowment-type loans early with the plan of pocketing the entire policy return, has anybody considered whether it is better to pay the interest now rather than the tax later ?

CS

Jays

Is an endowment return taxable?

I don't know, so will watch the replies with interest as we expect two underperforming endowments to pay out after we finish repaying our mortgage early.

Jays