At What Age...
 

At what age did you pay off your primary residence?

As a bonus, please write if you paid off another property before paying off your primary residence.

We will have ours paid off about when I’m 45 if we keep doing minimum payments. But likely won’t do that since we will pay off last school loan and throw that at the house so hopefully when I’m around 42 or 43 in six years or so.

Best thing we ever did was refinancing to a 10 year loan a few years ago. We were on 18 years, and 30 years before that so took off about 12 years of house payments overall.

Just took a 30 year last year. At 3% it makes absolutely no sense to put a nickel extra into my mortgage.

Yep, use that money for other investments.

Mine is pretty much paid off. Did it before I reached 50.

I have a all in One Loan. It uses your property as collateral.

The interest rate is higher but it is simple interest. It is tied to a checking account. Any money I deposit into the checking account is cleared every night and that money gets credited to the line of credit account (lowering the balance you are paying interest on) . When you use the checking account it pulls the needed funds from your line of credit.

It is not "offered" in all states but it is a great tool if you can get it.

This explains it better
https://www.thebalance.com/what-is-a...rtgage-5200578

I'm currently on pace to pay off my primary residence next year (early 50s). At times I have felt like I was way behind... grew up in California and owning property seemed as impossible as going to the moon. I didn't purchase my first property until I moved to another state in my early 30s.

Just curious what is the "average" here on CP.

I have a little less than 4.5 years left on my Mortgage at 3.375% interest. I'm in no hurry to pay it off. I'll be just under 60 when I do so :)

I'm not there yet, but it should happen around age 52 in theory. That said, I'm in no rush. With an interest rate of 3.0%, I'd much rather put money toward other investments.

I just reupped on a 30 yr.

I'll likely downsize and pay cash for something well before its paid off.

The wife and I are in savings mode in order to buy our first home in a couple years time (hopefully). We're both in our early 30s, with no generational wealth to speak of. It's hard out here for a piiiiiiiimp.

I'm on pace to pay it off at 60. I haven't paid any additional principal to date. Things are going to have to change pretty substantially for my finances before I'll be looking to do any additional principal or early payoff.

I'm going to have 2 places of residence.

My plan is sell my home in Wichita in the next 3 years, and buy a similarly priced, smaller home in Fort Worth so we can look after my MIL from time to time. At about the same time, I'll be looking to buy my dream home in Colorado where I can see mountains and water. I want to be able to ski, hike and river raft while I'm still physically able to do those things.....and hopefully have my kids and future grandkids visit :)

I'm 55, so the clock is ticking. Time to giddy-up!

I plan on setting it on fire way before I pay it off.

You and everyone else it seems. :p

But seriously, it's hard to leave this place. Every once in a while my wife and I feel a bit of wanderlust and toy with the idea of moving, but then we actually compare what we like to do here and what we'd be gaining elsewhere. Pretty quickly we end up just deciding to stay put.

If nothing else, having a major hub for an airport makes it pretty easy to visit just about anywhere we want without a major hassle, so we scratch the itch to live elsewhere by just taking a lot of weekend trips to get away for a bit.

And interest rates aren't getting better.

But yeah, sounds great man. Hell of a lot to be proud of to be even in the universe of being able to get that done.

If you like Colorado, boy let me tell you about southwest Missouri.......

If you squint really hard, they're practically the same! Mountains, rivers, an airport - SW MO has it all!

(But to be fair, there's a decent amount of outdoorsy stuff you can do in SW MO and NW AR. It just comes with a lot more heat, humidity, and bugs than I prefer.)

Age 30. Everyone says dumb to pay off low interests rates mortgage but it really helped me get ahead of the game to throw money at other things. Maybe it was more mental than financially strategical but worked for me.

Oh the humidity in teh summer is just as fun as the cold in the winter.

There's tons you can do outdoors here. We like to drive around the lake and look at meth houses.

47. I started with a 30 year then switched to a 15 when rates dropped significantly. I paid that off early when the interest I was paying wasn't significant enough to matter on taxes. It's so nice not having that payment.

Nothing wrong with that. Paid off house is a huge asset on the books.

Paid off the first house at 35. The kids were out of school so we sold it and bought 30 acres of timber with a shed on it and paid cash.We remodeled the shed and lived there for a year while we built a new house on a 15 year loan. Couple more years, it’s ours.

Plus the apartment in the shed
sec

I used to be of the mindset to pay off my mortgage when I was in my early 40's. We had a friend over for a dinner party and I was bragging on my plan to be mortgage free. This was just before the housing bubble exploded. My property value had skyrocketed.

My friend carefully explained to me the trapped equity sitting in my house that did nothing. I believe mortgage rates were around 5% IIRC. He explained how if I took out 100k of that trapped equity and put it to work making more than the 5% I was being charged on the 100K I would be money ahead.

I did as he suggested and purchased a 4 plex with the standard 25% down. We were making a little over 10% cash on cash on my investment. I had a little more cash left over that we sat on waiting for another deal where we could get that kind of return.

Shortly after the housing market crashed we purchased a Duplex on a short sale with about a 30% cash on cash return.

Mortgage money is cheap for now. We have 4 mortgages, 3 on rentals and 1 for our primary residence. The tenants are paying the bills on the rentals. We could take money out of investments and payoff the primary but as long as the investments are earning more than the Principal and Interest, it doesn't make since to me financially.

We do have 3 properties that we own free and clear or I should say our IRA's own free and clear since they are situated inside a Self Directed IRA.

This seems really smart. I've historically been too conservative to do something like that. I just want to make sure that I'm never going to be homeless.

This, I ran the numbers when we bought our current house. I could have paid a 15, but the difference at a 6% return would be over 600k in 30 years. So I invested that extra amount instead.

100% Debt free before I was 43 including the house and have remained that way.

We moved into our 2nd house in the early 80s, and the rate on a 30 yr. fixed was 12.75%. I refinanced at 9.75% and later at 6.5%, and kept paying the same amount as the first loan. Paid it off in 16 years at age 42.

Then that payment went to the kids college tuition - three graduated debt free.

Then excess money went into my 401k, which I was maxing out for several years.

When the company wanted to phase out pensions, I was old enough to stay in the pension system (Younger people went to IRA only, with greater matching funds). I put about 300 grand into an annuity.

I retired at age 59, and am living comfortably on my pension, annuity, and some stock dividends. Its been 5 years and I have not yet tapped into Social Security or my IRAs.

The beauty and key to this plan is that if really needed, we could liquidate some investments and payoff the Mortgage on our primary residence.

Yeah, that's a good use of your money.

There is definitely an aspect of risk that you have to be comfortable with.

I've always thought the idea of having someone else pay the mortgage on real estate I own would be great...

Except for that whole "being a landlord" thing. I think I'd rather stab myself in the eye than have to deal with idiots tearing up something I own.

One more thing I will add. There are a hundred ways to skin a cat. There are a hundred ways to handle your finances. It is important that you tailor your plan in a way that suits you and your discipline.

I have read several books on investing and managing your money. Dave Ramsey might make since for some, he is not for me. I am sure he would criticize the way I manage my finances. But like I said there are a hundred ways to skin a cat!

Thread with a reasonable majority opinion: exists

BWillie: i DiD wHaT eVeRyOnE eLsE sAyS iS tHe DuMbEsT tHiNg PoSsIbLe

Yeah, and looking at it from the other way around, I think people miss that point when following someone like Ramsey to the letter... his strategy is for a specific subset of people and also not necessary for a lifetime. I mean, sure it might work for some people all the time forever and you can still retire on time and be happy, but it also doesn't mean it's optimal when your 20 and then 30 and then 40, etc.

When I got out of college, my plan was to buy a home as soon as possible and have it paid off by age 52. But I had a career misstep and also didn't want to live in St. Louis forever, so that plan got derailed. At age 31 I bought a condo, which was a great first step, and then a year later we bought our house.

So I was 32 when we bought the house and the plan became payoff at 62. But interest rates were coming down and we refinanced 2 or 3 times and eventually ended up with a 15 year loan. We decided that we would put any bonus money toward the home loan and I'm proud to say that we paid off the house when I was 48 or so, ahead of my original plan.

I realize that I could leverage our home equity for other investments, but I'm too conservative. I want to own my house with zero risk.

The cheapest non condo where I live goes for around a million bucks



so never

With interest rates as low as they have been, it does not make sense to pay it off. My current MR is at just above 2%

That is basically free money. My portfolio has taken a pounding this year, but it has produced more than enough growth over the past five years to make selling to pay off a mortgage balance a terrible idea.

Eh, from a numbers perspective, sure, it makes sense to take the cheap loan and put your money to work elsewhere. Nothing wrong with wanting peace of mind from eliminating a huge debt and payment from your life, though, as long as you understand you're paying (in a sense) for it.

It's not that far off from someone trying to tackle a bunch of varying types of debt. Should you pay off the biggest interest rate first? Probably. But if paying off a small loan first (even with a lower interest rate) helps you to simplify how you plan otherwise, it can be a worthwhile approach.

Why do you stay? Family? Job?

Not trying to be snarky. I am genuinely curious what keeps people living in cities with astronomical housing costs. I grew up in California and there are things that I sometimes miss but, looking at it with my current perspective, I wish I had left sooner.

Exactly. Plus most of my home improvents/Repairs/Maintinence/Whatever experience has been:

Bid: $2500 for a project
Consensus: $5,000 absolute maximum worst case scenario.
Buehler445: I have $7500.

$10,000 later I'm about half ****ing done. :cuss:

<iframe width="560" height="315" src="https://www.youtube.com/embed/_Cr0nP3k_p4" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

Yeah, I've moved a couple times and some equity always goes towards that 20% mark on the next place to avoid mother****ing scam PMI*, I've been able to use some to pay off student loans and what not in one large chunk...... it definitely frees up options on disposable income versus other investments and what not (minus a few hundred in student loans each month, plus that much for 401k contributions).

*I hate PMI at least as much as Buehler hates Squirmin Herman

I'm in the UK so the idea of a "primary residence" is hilarious. But I've done the maths on it and i'll beeee...167.

Are you actually paying something off, or is that a deal where you get a punch card and a free house if you live in it for 100 years?

I remember reading that some places in Japan were being sold with 100-year mortgages. A person bought them, and then presumably could pass the mortgage to their heirs.

Nah I'm kidding. I've got a bog-standard mortgage. Well, possibly about to get a much larger one so I can have an escape room from the family. I'll pay it off in my 60s I guess. I've not heard of that type of mortgage you mention.

My understanding with Japan is it's one of the few places where houses can depreciate and where they're not viewed as assets. Something about their lack of durability due to earthquakes maybe? Don't quote me, could be nonsense. I've been and tbh it may be the only place on earth with smaller housing than the UK.

I would have had mine paid off in the next year or 2 but 2 years ago we bought a nicer place and sold the old one. While it put me in more debt the equity in my new house will far surpass the value of my old house even once the old one would have been paid off. The location just has a low ceiling due to comparable even though my house was in a cool spot.

We will stay in the new house for another 10-12 years then downsize and pocket the difference and have the retirement house paid for.

As many have noted with a <3% Interest rate and the value growing way faster than that its a good investment.

I know the housing boom is about to go bust eventually but the value of my house is up 33%+ since I bought it about 2 years ago as well.

I got a good deal on it right before things went crazy.

Ah, okay. I know some of those European countries have very non-American home ownership patterns.

I've owned my house for 25+ years and almost all of that was in a low-inflation environment. Suddenly with high inflation I'm seeing a huge benefit of home ownership. I watch my home value estimate on Zillow and it's been in a big spike upward over the past 6-12 months. Some of that is normal housing, but I bet a lot of it is inflation. So my home equity is serving as a nice inflation hedge.

This is a little flawed. Saying you own your home outright that happens to be a $10k mobile home is way different than paying off a $500K home.

Maybe that doesn't matter. Having a place to live thats paid off gives a person security. I got mine paid for around age 54 and I won't borrow against it. I know the equity is trapped but I'm OK with that. The value of the property is still growing 5-10% yearly.

It's nice to know that I could pay off my mortgage if I wanted to, but I'm in the group that would rather have that money working for me.

I'm in my early 30s and have yet to begin the process of purchasing my first home. A lotta bit of what SuperChief mentioned earlier has been an issue. Surging housing costs in a major metro area are a big issue and, admittedly, it did take me quite a long time to secure a job that paid what I'd consider a good wage after school.

In retrospect, I definitely should have bit the bullet a few years back and just bought. Even if it was a town home, I'd be in a much better position now.

Issue was, I was stuck on wanting to save up a ton of money for a down payment thinking it'd be smart to reduce the monthly cost (particularly PMI). I know now that that is generally not a great idea and that money is better spent elsewhere; but I never had any guidance from my parents in the whole process so I'm learning everything on the fly.

Like in most situations, I wish I knew then what I've learned now.

I am very dumb. Thank you.

Definitely interesting watching House Hunters in Europe and seeing how different things are there.

We paid ours off first time in '04. We used it as collateral to buy a lake house. Paid it off in '09. Refinanced it to buy college house for daughter in 2016, then refi'ed again last year to buy house to rent to son & daughter in law.

We'll see when we get it paid off again.

It’s been over 6 years now since I’ve had a house payment (or any other debt). I am beginning to look for retirement properties in the Charleston, SC area and loathe the idea of once again having a mortgage. However, I may loathe that idea less than selling off investments to buy it in cash. It’s a hard call for me. However, If rates keep climbing, the call will become much easier to make.

My house was paid off by the time I was 45; back then, interest rates were pretty high and I got the shortest period I could afford. I think it was around 8%. My first car loan in 1981 was 16 2/3% so that seemed like a deal. Paid off a second home in 2009. I'm not rich however I drive older cars and live within my means.

As far as the tax deduction goes, I like what my father said about it: The money is still gone! Lost him in 1982; damn, been gone 40 years. Miss ya, dad!

We currently owe about 60k on our house. We have been looking at the market and we could likely sell this house for at least 300k currently (likely more with the area/upgrades/market). I can but 3 1/1 condos in Playa Del Carmen for 250k. Live in one rent one out monthly and one out Air BnB.

I was thinking about doing this as well. I have enough equity in my home now, I think I could pull it off. I'm just doing a little bit more research.

House was paid off at 51, farm will be free and clear in 2 years. Could pay it off now but no hurry.

Pity the next round of real estate buyers with Interest about to start rocking up fast and prices crazy high

You know, I keep hearing the crash is coming and doom and gloom and I'm just not seeing it. At least in the lower end market.

Rates have gone up and houses are still flying.

It’s early. It takes a bit for COL inflation to outrun wage inflation. But when it does it will be ugly for those that are stretched.

You and I are in identical situations. Didn’t realize you were also early 30’s all along here. Never had guidance or anything either. I’m currently renting a really nice house for a cheeeeap price in Desoto. Wish I knew more about finances growing up as well.

I think learning on the fly could end up making guys like us really become more cerebral down the road once things are steady more. Learning on the fly is a quite a journey.

I'm just not seeing the oversupply or supply at all for entry level houses.

Yes, sir. Late 80s baby.

Every generation has had its challenges but I feel like we’re getting the ****ing shaft.

I'm currently living in a van down by the river waiting for the housing bubble to burst so I can afford real estate. Sorry in advance for your loss.

I work in the industry



I ski for fun

Are you the guy who dusts the sand off of the supermodels when they're doing beach shoots? If so, do you have any advice on how to break into the industry? Asking for a friend.

I could own a house in Waldo, right now, without a mortgage. Especially cheap if they don't have a garage.

Only if you turn the actual garage into a glory hole

I've been blessed. Had my first house at 20...and paid for buy pure luck.

There was an old farm house adjacent to my grandparents property. They were both handicapped but I've grown up with them all my life.

After they were gone my parents bought the house...and 80 acres. I worked my farm and my grandparents.

It was a great time being single. No payments, cattle in back, and no ****s to give. Keep in mind this was no penthouse. The house was built in the early 1900s.

Fast forward a few years and I thought it was a good idea to get married. Didn't work and I lost it all.

My parents were lucky enough to start a business and retired at 50. They became snowbirds and bought a house in Florida. (My brother lives there)

A few years ago they decided to build a new house in Missouri. When they were doing construction Ma came to me and the wife and said "pick out fixtures".

Why? She said it's yours.

They put my name on the house here and my brother gets the one in Florida.

Before the trolls start....best thing my old man ever taught me was he said one day...."I got me money, go get yours".

I'm proud of them but hate telling this.

Most people think of a spoiled rich kid. My old man definitely made sure that didn't happen. He just got back from Hawaii and I'm eating Ramen noodles. Wouldn't change anything though.

Only downside...it's my house...when they're gone. Ma just left us recently and Pa isn't well.

I thought about a CP BBQ when things get settled. It's unmm not a small house....and the 14th tee box is out the back door.

I rent.

If you did that, would women show up or men? It would be an interesting but high risk experiment.

HayWire reading this thread...

<div class="tenor-gif-embed" data-postid="7250101" data-share-method="host" data-aspect-ratio="1.78571" data-width="40%"><a href="https://tenor.com/view/espresso-classy-pinkies-up-sips-tea-sipping-gif-7250101">Classy GIF</a>from <a href="https://tenor.com/search/espresso-gifs">Espresso GIFs</a></div> <script type="text/javascript" async src="https://tenor.com/embed.js"></script>

You guys say you've never had guidance yet you've been a member of CP since 2007.

Eat shit pecker head