Cups

[12string]

but not.

Not gonna miss you when you're gone!

Sent my mortgage payoff payment to the bank!!!!

It was going to be paid off in August, but I can save around $2K sending the money to the mortgage instead of the savings account.

[ChrisL]

We’re struggling with this now… We just paid off my car so we can use that money to pay off our mortgage in 1.5 years but at a 2.2% interest rate we are thinking of investing instead.  

We are following my FIL’s investment plan which is yielding just over 6% quarterly dividends so I’m trying convince WOChrisL to invest the money that would go to the mortgage and we’ll come out roughly 4% ahead…  But she really wants to be out from under the mortgage… 

[jsharr ★]

6 minutes ago, ChrisL said:

We’re struggling with this now… We just paid off my car so we can use that money to pay off our mortgage in 1.5 years but at a 2.2% interest rate we are thinking of investing instead.  

We are following my FIL’s investment plan which is yielding just over 6% quarterly dividends so I’m trying convince WOChrisL to invest the money that would go to the mortgage and we’ll come out roughly 4% ahead…  But she really wants to be out from under the mortgage… 

Maybe do a 50/50 split?  

 

[Longjohn ★]

12 minutes ago, ChrisL said:

We’re struggling with this now… We just paid off my car so we can use that money to pay off our mortgage in 1.5 years but at a 2.2% interest rate we are thinking of investing instead.  

We are following my FIL’s investment plan which is yielding just over 6% quarterly dividends so I’m trying convince WOChrisL to invest the money that would go to the mortgage and we’ll come out roughly 4% ahead…  But she really wants to be out from under the mortgage… 

How does the mortgage interest deduction on your income tax play into this situation?

[ChrisL]

Just now, jsharr said:

Maybe do a 50/50 split?  

Yeah we are considering that too.  The truth of the matter is our investment (right now) is still pretty small and it’s a supplement to our 401k & IRA’s so the 6% really isn’t a huge dollar amount whereas 2% interest on the remaining mortgage is….

First world problems, where do we put extra money… We’ll figure it out.  

 

[ChrisL]

3 minutes ago, Longjohn said:

How does the mortgage interest deduction on your income tax play into this situation?

 I’m not the tax wizard, WOChrisL is but we are paying every year now where as early in the mortgage it seemed to be more of a benefit where we got a return.

[Parr8hed]

16 minutes ago, ChrisL said:

Yeah we are considering that too.  The truth of the matter is our investment (right now) is still pretty small and it’s a supplement to our 401k & IRA’s so the 6% really isn’t a huge dollar amount whereas 2% interest on the remaining mortgage is….

First world problems, where do we put extra money… We’ll figure it out.  

I have that part figured out.  Just invest it into a softball team.

[Razors Edge ★]

1 hour ago, ChrisL said:

But she really wants to be out from under the mortgage… 

My aim is to have retirement and mortgage payoff be simultaneous.  We are down to a low balance and I slowed paying it down any faster when my 2% rate was not the best place to use the money.  If things swing, I could pay it off, but with low rate and no guarantees of anything, having relatively liquid $$$ earning way in excess of the 2% (and getting a small tax break) seems better than just going 100% debt free.  In retirement, 100% debt free looks way more important, but not at this instant.

[MickinMD ★]

1 hour ago, 12string said:

but not.

Not gonna miss you when you're gone!

Sent my mortgage payoff payment to the bank!!!!

It was going to be paid off in August, but I can save around $2K sending the money to the mortgage instead of the savings account.

When my 9.5%, 1991 mortgage was a couple years old, I refinanced for 6.25% in 1993.  When there were 5 1/2 years left in 2003, Wells Fargo offered a no-fees special 4-year mortgage at 5.4%.  I retired in 2006 with 7 mortgage payments left.

I never got to the point where I was going to pay off the mortgage in advance.

I never missed a payment, all done by automatic ACH payments through my checking account - except the last one!  I missed the information that the last payment could not be made by automatic payment.

When I got a late notice, I called Wells Fargo, was told this happens all the time and was forgiven the late payment and that nothing about late would appear in my record, paid it by phone/credit card, and then celebrated.

[12string]

4 minutes ago, MickinMD said:

When my 9.5%, 1991 mortgage was a couple years old, I refinanced for 6.25% in 1993.  When there were 5 1/2 years left in 2003, Wells Fargo offered a no-fees special 4-year mortgage at 5.4%.  I retired in 2006 with 7 mortgage payments left.

I never got to the point where I was going to pay off the mortgage in advance.

I never missed a payment, all done by automatic ACH payments through my checking account - except the last one!  I missed the information that the last payment could not be made by automatic payment.

When I got a late notice, I called Wells Fargo, was told this happens all the time and was forgiven the late payment and that nothing about late would appear in my record, paid it by phone/credit card, and then celebrated.

This mortgage started in 1984, at 13.75%.  Refied the first time, they screwed me and I got stuck with an adjustable.  Refied again to fix that and add in the addition we were building.  Rewrote that one to 5years at 4.5%.

I wasn't going to payoff early, until I did the math.  I'm not paying much interest now, but simply putting the principal and escrow into a savings account makes a big difference