Mortgage balance now below 100K!!

[disneysteve]

As of our most recent mortgage payment, our principal balance is now below $100,000 for the first time, $99,987.65 to be exact. DW didn't think that was a big deal, but I thought it was kind of neat. Can you tell I'm the numbers guy in the house?

[moneymatters]

Great News, disneysteve!

Only $99,987.65 closer to having your home completely paid off, which many of us SAers cannot boast (yet)

[disneysteve]

I'm in no hurry to pay off the mortgage. We have a good rate (5.875%) so I see no reason to throw extra money at it. I'd rather invest it.

We do have a home equity loan, though, and I am making extra payments on that since the rate is higher. That's down to about 16K and I hope to have it paid off in 2-3 years.

[pearlieq]

Very neat!

I got the same kick out of ours going below 200k. It's just fun to pass that kind of milestone!

[scfr]

Congrats - It is a kick seeing the numbers change. For us the most exciting moment was when more of the monthly payment went to principal than to interest.

[rooskers]

"For us the most exciting moment was when more of the monthly payment went to principal than to interest"

I am really looking forward to the time when I look at my statement and I see more going to principal than interest. As of right now in order to achieve that I am making extra payments on the principal.

[Hot dog]

And to think we were excited to see it fall below 300,000. congratulations cant wait to celebrate the same. Just wondering why you don't pay off the 16,000 faster? You see to have a lot in savings. I have another and again happy to see it under 20,000 but I am desparately trying to get it paid off. I would love to have it done by this time next year. However, I HATE owing money it worries me to death and will feel much better when I only have the one mortgage.

[disneysteve]

Originally Posted by Hot dog

Just wondering why you don't pay off the 16,000 faster?

I'm not particularly bothered by relatively low interest debt, especially the tax-deductible kind. We have more than enough to pay off the 16K, but I prefer to invest the money in higher-yielding investments (until the recent correction, of course ).

What I do is fully fund our Roths for the year and then take the money that was going to the Roths and send it in as extra principal payments on the HEL. So the first half of the year, I fund the Roths and the second half I make extra payments on the HEL.

[FrugalFish]

Ours passed $100K a little over a year ago- it is a neat feeling! Congratulations!

It's a tiny bit off subject, but I have this old stress chart in a health book that assigns a point scale to stressful situations like birth, death, divorce, etc. One of the stress points is "having a mortgage over $10,000." Wow, that must be an old scale, LOL. They said $100K was more in line for today- I know that seeing it change from 6 digits to 5 sure made me feel less stressed :^)

[LivingAlmostLarge]

Congrats!

[Diolla]

Wow, you all make me glad I live where I do. My mortgage has always been below 100k. (only paid 34k for the house)

[disneysteve]

Originally Posted by Diolla

Wow, you all make me glad I live where I do. My mortgage has always been below 100k. (only paid 34k for the house)

Wow. Where do you live? What kind of house does 34K buy?

We have an older, pretty modest home that we bought 13 years ago and our downpayment was $28,400. Heck, our property taxes alone are $7,000/year. We wouldn't even have taken out a mortgage if houses were 34K.

[Hot dog]

I think my problem with having an extra mortgage must lie more in freeing up some money even though I always pay extra about 500 last month. I haven't started my roth yet and I know how important it is. I do contribute10% to my 401K. It would just be security knowing that I only have just the mortgage to pay. If I had a lot of extra cash flow I would pay the minimum I guess and invest the rest.

[disneysteve]

Originally Posted by Hot dog

I always pay extra about 500 last month. I haven't started my roth yet

In the long run, you'd probably do better to fund that Roth before making extra mortgage payments. Of course, that depends on the interest rate of the loan and the performance of the Roth investments, but most likely your Roth could outperform your loan.

[Hedy]

Awesome!

[Hot dog]

I know but it is that need for security that makes me do it like that but actually it is a 7 year balloon. It has been 1 year and I have paid off 5,000. That is the other thing that makes me want to get rid of it first I was just wandering what your take on it was

[disneysteve]

Hot dog - My HEL is a fixed-rate, so no worries about rates/payments increasing. After the tax deduction, the rate is fairly low, so I felt I'd do better investing extra money. Once my accounts are fully funded each year, I then put extra money toward the loan. That way I do the savings and the early repayment.

[DayByDay]

Congratulations

[Broken Arrow]

Wow, congrats! Great rate too.

[Diolla]

Originally Posted by disneysteve

Wow. Where do you live? What kind of house does 34K buy?

We have an older, pretty modest home that we bought 13 years ago and our downpayment was $28,400. Heck, our property taxes alone are $7,000/year. We wouldn't even have taken out a mortgage if houses were 34K.

Here (NE Kansas) $34,000 buys a 2 bedroom, 1 bath 860 sq ft 1925 bungalow that needs some work but is livable. I plan on putting about 20k into it in renovations to bring it up to the standard for the neighborhood. Most houses in my neighborhood are 1800 sq ft +/- and sell for 90-110k. Mine has been estimated at 80k after the renovations.

I was flat broke after my divorce so I saved 20% down and bought the crummiest house in the nicest neighborhood. COL is cheaper here but wages are lower too. I should have it all paid off by 2011.