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paying off our mortgage

Last post 04-10-2013 1:42 AM by swapnil. 12 replies.
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  • 07-21-2012 5:22 PM

    paying off our mortgage

    My husband and I are debt free except for our mortgage. We recently refinaced $132000 for ten years at 3%.

    I would like some opinions...Do you think it is worth paying off this mortgage at such a low rate before it's term? In the past we always paid extra on the principal every month but now I am not sure what to do!

  • 07-21-2012 6:38 PM In reply to

    Re: paying off our mortgage

    Depends ... are you talking about paying it off immediately or down the road.  If now, would you wipe out savings to do it?

  • 07-21-2012 6:41 PM In reply to

    Re: paying off our mortgage

    I definitely do tthink you should pay it off. We have a paid for home and there is nothing like the feeling of having no mortgage to worry about. Especially when hard times come around, there is such a peace of mind that no interest rate can compare! I say go crazy and pay it off. Just think of all the extra money you'll have too for saving later.
  • 07-21-2012 9:19 PM In reply to

    Re: paying off our mortgage

    danawood:

    My husband and I are debt free except for our mortgage. We recently refinaced $132000 for ten years at 3%.

    I would like some opinions...Do you think it is worth paying off this mortgage at such a low rate before it's term? In the past we always paid extra on the principal every month but now I am not sure what to do!

     

    The answer depends on your plans. 

    Do you plan to live in the house longer than 10 years, or is this not "the house" you want to keep?  If you are not going to be in the house for another 10 years, then paying extra on the mortgage is betting that the housing market will improve, which I personally believe is a gamble.

    If this this the home where you intend to live & grow old together, then by all means pay extra on the mortgage & get it paid off ASAP, as long as you can still save for retirement, etc.  

    Owning your home early will save you a lot of money not paid on interest on the loan, over the 10 years. You will pay around $40,000 for the priviledge of paying it off over 10 years.

    We will own our home, & be debt free, by the end of the year.  We do not view our house as an investment, we view it as our home, the shelter over our heads, & the land that feeds us through our garden, fruit tree, & berry bushes.  To us, the only downside of owning our home was that we lose a tax deduction of around $900/year that we pay in mortgage interest.  I do not expect that the mortgage deduction will survive the next round of government cuts, anyway.

     

  • 07-22-2012 8:10 AM In reply to

    Re: paying off our mortgage

    no, we would add extra principal payments every month and maybe an occasional lunp sum

  • 07-22-2012 11:26 AM In reply to

    Re: paying off our mortgage

    zohnerfarms:

    The answer depends on your plans. 

    Do you plan to live in the house longer than 10 years, or is this not "the house" you want to keep?  If you are not going to be in the house for another 10 years, then paying extra on the mortgage is betting that the housing market will improve, which I personally believe is a gamble.

    If this this the home where you intend to live & grow old together, then by all means pay extra on the mortgage & get it paid off ASAP, as long as you can still save for retirement, etc.  

    That was a very good answer, Zohnerfarms. I, too, believe that the peace of mind that you get from owning your home is something more important than what the dollars and cents may dictate.
  • 07-22-2012 3:09 PM In reply to

    Re: paying off our mortgage

    As someone who is underwater with her mortgage right now, I completely agree. :(
    Mama to a teen and a preschooler KINDERGARTENER!! -- oh, the fun! Also co-parenting 3 other awesome kids. :)
  • 07-24-2012 1:56 AM In reply to

    • brokes
    • Not Ranked
    • Joined on 07-24-2012
    • Posts 1

    Re: paying off our mortgage

    Another reason that may be of good benefit for paying the mortgage off fast would be flexibility once done you're free to put your money else where. Also as the economy is right now noone knows what the future holds and the less debt your in the better should the market get ripples..
  • 07-24-2012 1:56 PM In reply to

    Re: paying off our mortgage

    I'd keep paying extra on the principal as you have been.
  • 07-24-2012 10:00 PM In reply to

    Re: paying off our mortgage

      If you've got a good emergency fund built up (and I'd say retirement funds, too) and you're planning on staying in the house for many years, then by all means, keep on paying extra on the principle.   I personally think that having some cash reserves on hand is a good thing ... can't count on being able to sell a house in a hurry should you need cash.

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