Early Retirement Extreme Forums

Early Retirement Extreme Forums » Housing Questions

1. 

   ktn
   

   Journeyman
   Joined: Jul '10
   Posts: 116

   I don't have anyone else I could share this with and expect understanding from. I know there are many people here who think it is a silly thing to do. But silly me did it.

   I P-A-I-D O-F-F M-Y O-N-E A-N-D O-N-L-Y L-O-A-N T-O-D-A-Y.

   Whew. There, I said it.

   I could not think of any other way to celebrate my (upcoming) 40th birthday. So INTJ me decided this would be it. Now I have almost no investments whatsoever but the home. But yeah, it feels nice to be debt-free again.

   I fretted over taking on a mortgage for many years. I finally bit the bullet and then discovered this website right after. I have always been a saver, but thanks to Jacob I have been doubly-focused on saving the max so I could pay down this debt. To me it felt like the first (easy) step I needed to take in my quest for FI. The next is going to be the harder part - figuring out an investment strategy and executing it while I continue to save.

   I was broke at 30. I have a home at 40. I want to be FI by 50. Wish me luck!

   Posted 1 year ago #
2. 

   S
   

   Journeyman
   Joined: Jul '10
   Posts: 288

   Congrats!

   Posted 1 year ago #
3. 

   livinlite
   

   Journeyman
   Joined: Feb '12
   Posts: 108

   Major congrats!!!

   I felt the same way when I paid off my student loans a couple months ago. They'd just been sitting there for years and I'd kind of ignored them. Now it's one less debt (just have a car loan left I want to get rid of...but am waiting on the wife to approve).

   Posted 1 year ago #
4. 

   Ralphy
   

   Journeyman
   Joined: Jul '10
   Posts: 191

   Well done! I'm another one who put a big chunk of money into fully repaying student loans, and I don't regret the decision at all. If you keep up your high savings rate, the investments will build up quickly.

   Posted 1 year ago #
5. 

   putski
   

   Novice
   Joined: Apr '11
   Posts: 25

   It's such an awesome feeling, isn't it? I paid off a mortgage last fall and felt compelled to announce it here to the people who understand. Congratulations.

   Posted 1 year ago #
6. 

   Canadian Dream
   

   Novice
   Joined: Nov '11
   Posts: 25

   Way to go!!!!!! That is a great first step to FI!

   You are helping me to stay motivated to kill my mortgage off later this year.

   Thanks,
   Tim

   Posted 1 year ago #
7. 

   celliott
   

   Apprentice
   Joined: May '11
   Posts: 62

   KTN, Absolutely Outstanding!!!!!!

   The ones who usually think it unwise have never done it. It's all mathematical equation and calculation to them. However, there are very few things that open the door to FI like a paid off house. I paid my last house off in 19 months. Taxes and Insurance equate to ~2.5% of my income. It will always be manageable.

   Enjoy the success and liberating feeling. Your investments going forward will be sweeter also. Trust me, you'll be more relaxed about your investments now as you move forward.

   Posted 1 year ago #
8. 

   ktn
   

   Journeyman
   Joined: Jul '10
   Posts: 116

   Thanks, Y'all. So good to hear there are others here who've done or are doing the same.

   @livinlite: Good luck on getting rid of the car loan. If you are like me, it will feel good to be debt-free. I was there once and have been yearning for that state since.

   @putski: It hasn't really sunk in yet. By the way, I'd like to see a journal update from you soon. :-)

   @Tim: I look forward to hearing the announcement. You are a good 5 years ahead of me FI target-wise. Keep it up.

   @celliott: 19 months! Wow. I did mine in 23.

   Posted 1 year ago #
9. 

   riparian
   

   Master
   Joined: Oct '11
   Posts: 341

   Congrats! I paid mine off last summer. FI through no housing expenses is the best strategy IMO, otherwise you're always a slave to some form of getting big chunks of money.

   Posted 1 year ago #
10. 

    BeyondtheWrap
    

    Journeyman
    Joined: Jul '10
    Posts: 265

    Awesome!

    Posted 1 year ago #
11. 

    aussierogue
    

    Master
    Joined: Nov '11
    Posts: 340

    That is amazing news...40 is a great effort....

    Dont forget to celebrate major milestones....just dont go into debt doing it!

    Posted 1 year ago #
12. 

    Dragline
    

    Master
    Joined: Aug '11
    Posts: 959

    Awesome!

    Posted 1 year ago #
13. 

    DutchGirl
    

    Master
    Joined: Sep '11
    Posts: 479

    Congrats and well done, must be a great feeling!

    Posted 1 year ago #
14. 

    prosaic
    

    Apprentice
    Joined: Jan '12
    Posts: 68

    Big congrats!

    Posted 1 year ago #
15. 

    Hoplite
    

    Master
    Joined: Dec '10
    Posts: 489

    Congratulations! Posting it here seems even better than a mortgage-burning party!

    Posted 1 year ago #
16. 

    ktn
    

    Journeyman
    Joined: Jul '10
    Posts: 116

    Thank you, thank you.

    A mortgage burning party? I had to look it up.

    Then I ran into this:
    http://www.npr.org/templates/story/story.php?storyId=106242731

    There is whole world out there that is sooo different. I had assumed most people would want to pay off their mortgages asap. I feel like a hermit who has lived in a cave too long.

    I think I'll take aussierogue's advise and treat my two closest friends to brunch on my birthday day.

    Posted 1 year ago #
17. 

    Hoplite
    

    Master
    Joined: Dec '10
    Posts: 489

    The world became very different with refinancing (resetting the clock), "harvesting equity" by borrowing, and all the other come-ons from the mortgage lenders to send the serfs back to the plow. Actually owning a house never seems to occur to people anymore.

    But it sure is worth celebrating the liberation!

    Posted 1 year ago #
18. 

    BPA
    

    Apprentice
    Joined: Jun '11
    Posts: 92

    Congratulations!!!

    I hope to be there in 3 years or less.

    Posted 1 year ago #
19. 

    dot_com_vet
    

    Master
    Joined: Jan '11
    Posts: 376

    Congrats!

    This is fantastic for your finances! It's makes a high savings rate even higher.

    Posted 1 year ago #
20. 

    chicago81
    

    Apprentice
    Joined: Feb '12
    Posts: 68

    Congrats on paying off the mortgage! I paid mine off in November of 2010, and it was such a wonderful feeling!

    Posted 1 year ago #
21. 

    dot_com_vet
    

    Master
    Joined: Jan '11
    Posts: 376

    I think a reasonable, paid-off house could be almost as cheap as RV or van living.

    Taxes and insurance aren't that much. A little sweat equity can keep up on maintenance. If bought correctly, you could sell for more than you paid.

    The money tied up in a house isn't liquid, but if we're talking modest housing, it shouldn't be a majority of one's net worth.

    I do think long term camping in a VW van would quite fun though!

    Posted 1 year ago #
22. 

    palmera
    

    Journeyman
    Joined: Aug '11
    Posts: 270

    congrats!

    Posted 1 year ago #
23. 

    Susan Marie
    

    Novice
    Joined: Apr '12
    Posts: 12

    Congrats, I did this several years ago also. I wonder what percent of the US has no debt?

    Posted 1 year ago #
24. 

    celliott
    

    Apprentice
    Joined: May '11
    Posts: 62

    That group would probably be the real 1%ers.

    Posted 1 year ago #
25. 

    Susan Marie
    

    Novice
    Joined: Apr '12
    Posts: 12

    Interesting, the smart one percent I would say.

    Posted 1 year ago #
26. 

    BennKar
    

    Journeyman
    Joined: Dec '10
    Posts: 144

    Welcome to the club. I joined last August, but my savings haven't grown much due to buying a car last summer (used - low mileage). The last payment for the car is scheduled for tomorrow, then I'll belong to the true "no-debts" club.

    Posted 1 year ago #
27. 

    Bytta
    

    Apprentice
    Joined: Jul '10
    Posts: 55

    Congrats, ktn! Must feel really good to hit a big milestone!

    Posted 1 year ago #
28. 

    lazyboy
    

    Novice
    Joined: Nov '11
    Posts: 23

    Congrats!

    You should be real proud!

    Posted 1 year ago #
29. 

    ktn
    

    Journeyman
    Joined: Jul '10
    Posts: 116

    Thanks for the kind words, all. It feels especially great coming from the wise folks here.

    I bet there is a hell of a lot of people on here that are completely debt-free. Its probably like the INTJ concentration we have.

    @BennKar: You joined the club today. Congrats!

    Posted 1 year ago #

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