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Debt free at last!! WOOHOO!!!!!

post #1 of 15
Thread Starter 


This morning we paid off the mortgage to our house. We are officially debt free!




Party time tonight !!!!




So, should I spend all the excess money on the cats?!?!?






Oh yeah, and for those folks in the KC area that can appreciate this, we had supper at Strouds to celebrate.
post #2 of 15
If u live in the states you may want to refinance because of the tax benefits...Congrats though.
post #3 of 15


CONGRATULATIONS

post #4 of 15
CONGRATULATIONS!!! You should be soooo proud of yourselves!
post #5 of 15
That's awesome! Congratulations! I wish I was in your shoes... I still have 10 years of student loan payments, a racked up credit line and I'm just paying off a maxed out Visa.
post #6 of 15
Thread Starter 
Quote:
Originally Posted by BigKittenDaddy
If u live in the states you may want to refinance because of the tax benefits...Congrats though.
We actually ran a financial sheet on what we would save over time had we kept the mortgage with the tax benefits associated with it, versus maxing out pre-tax contributions and saving the balance of our monthly payment into other investments. Over 10 years, we'll have an additional $100,000 towards retirement.

There is a myth generated by mortgages companies that it is better for you to pay them money with interest than to invest your money and earn interest. I challenge everyone to run the numbers and see that it isn't always the best option. I was shocked when I did this and will never trust most financial companies again.
post #7 of 15
Quote:
Originally Posted by Momofmany
We actually ran a financial sheet on what we would save over time had we kept the mortgage with the tax benefits associated with it, versus maxing out pre-tax contributions and saving the balance of our monthly payment into other investments. Over 10 years, we'll have an additional $100,000 towards retirement.

There is a myth generated by mortgages companies that it is better for you to pay them money with interest than to invest your money and earn interest. I challenge everyone to run the numbers and see that it isn't always the best option. I was shocked when I did this and will never trust most financial companies again.
I'm glad you ran the numbers and am happy you have what you want. That is always good. I threw that out there because so many people do not know what their options look like. Just remember tho you actually have to save that money not spend it on pretties... The best of luck to you and yours.
post #8 of 15
That's wonderful, what a great feeling that must be! Congrats, and have fun celebrating!
post #9 of 15
Quote:
Originally Posted by Momofmany
We actually ran a financial sheet on what we would save over time had we kept the mortgage with the tax benefits associated with it, versus maxing out pre-tax contributions and saving the balance of our monthly payment into other investments. Over 10 years, we'll have an additional $100,000 towards retirement.

There is a myth generated by mortgages companies that it is better for you to pay them money with interest than to invest your money and earn interest. I challenge everyone to run the numbers and see that it isn't always the best option. I was shocked when I did this and will never trust most financial companies again.

Since I speak from experience - I have to agree. With interest rates so low, it takes a pretty good sized mortage to reap any tax benefits .

Congrats!!! You will need to stick around another five years for my post on this but I am getting close Wish I was there for the mortgage burning party
post #10 of 15
Congratulations!!! How very wonderful!This must be such a wonderful feeling!
post #11 of 15
Quote:
Originally Posted by Momofmany
We actually ran a financial sheet on what we would save over time had we kept the mortgage with the tax benefits associated with it, versus maxing out pre-tax contributions and saving the balance of our monthly payment into other investments. Over 10 years, we'll have an additional $100,000 towards retirement.

There is a myth generated by mortgages companies that it is better for you to pay them money with interest than to invest your money and earn interest. I challenge everyone to run the numbers and see that it isn't always the best option. I was shocked when I did this and will never trust most financial companies again.
I'm actually pondering this dilemma right now - I have the funds to pay off mom's mortgage, thanks to her life insurance, but do I want/need to do that? Actually it's kinda a no-brainer, because I'm going to be in school for the next 6+ years and I don't need to worry about a house payment if I'm trying to pay for tuition. I'm sorta looking forward to that payoff as well!!

CONGRATS!!!!! Glad you celebrated in style!!
post #12 of 15
Quote:
Originally Posted by BigKittenDaddy
I'm glad you ran the numbers and am happy you have what you want. That is always good. I threw that out there because so many people do not know what their options look like. Just remember tho you actually have to save that money not spend it on pretties... The best of luck to you and yours.
Does that say not to spend it on pretties or on kitties?

Congrats Momofmany! All those years of hard work paid off!
post #13 of 15
Congrats!!!..that must feel soo good!
post #14 of 15
Congratulations!!!

want to come and pay off my visa cards? im only on -2,000 but the way it looks im only going to be able to get it clear next year!
post #15 of 15
Thread Starter 
Quote:
Originally Posted by RicaLynn
I'm actually pondering this dilemma right now - I have the funds to pay off mom's mortgage, thanks to her life insurance, but do I want/need to do that? Actually it's kinda a no-brainer, because I'm going to be in school for the next 6+ years and I don't need to worry about a house payment if I'm trying to pay for tuition. I'm sorta looking forward to that payoff as well!!
I'm overprotective of my money, so I looked at the problem lots of different ways. Here is some advice that I heard along the way and it may help you to decide.

If you had all of your debts paid off, would you take out a loan against your house just to have a tax deduction on your income tax? If you have the cash laying around to pay off your mortgage, you are basically deciding to do that.

How much money are you really getting in your pocket for that deduction? Figure out which income tax bracket you fall into (say 23%) and what interest you are currently paying each year. Multiply the interest by the tax bracket and that is what you earn by keeping the mortgage. Multiple that by the years left on the mortgage. Now take the monthly payment and figure out what you would earn by putting it into investments or say, an interest bearing CD over the same time period. If you are not sure how to do the match, do a search for a financial calculator online. I used this site:
http://www.dinkytown.net/

The results are always interesting.
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