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Discussion Starter · #1 ·
Ok come July 2007 we will no longer have to pay child support to the sum of $600 a month, I would really like to take $300 of it and put it towards the mortgage, if we did that until it's paid up we would have it paid off in 2019, that's only 11 years instead of 19 more to go! Thus knocking off 8 years!

There may be times when we could put more especially around income tax time maybe pay an extra $1000 towards it yearly for 7 years, thus only knocking our payoff date to 2018.

I always get excited to see how we could be mortgage free as fast as we can, but does this seem logical? I want to go over this with DH before I get all excited about it but any thoughts?

TIA!
 

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Ok come July 2007 we will no longer have to pay child support to the sum of $600 a month, I would really like to take $300 of it and put it towards the mortgage, if we did that until it's paid up we would have it paid off in 2019, that's only 11 years instead of 19 more to go! Thus knocking off 8 years!

There may be times when we could put more especially around income tax time maybe pay an extra $1000 towards it yearly for 7 years, thus only knocking our payoff date to 2018.

I always get excited to see how we could be mortgage free as fast as we can, but does this seem logical? I want to go over this with DH before I get all excited about it but any thoughts?

TIA!
I think that sounds like a great plan!!
 

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Tracy I was just thinking. I don't know if you have a fully funded EF yet but if not possibly fill that up beforeadding to the mortgage. Just pondering!
 

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That would make sense to do. I would suggest however, that you look at the mortgage papers to see if there's any penalty for principal payments, and up to how much. There are stipulations for doing so. Some are good, others say NO WAY unless you pay us t$x in penalty.Dumb I know.

ALso, if you're renewing, I'd set it up that you can transfer from your account to the mortgage. AND, if you are do to renewal, try doing bi weekly. We did this last time, we added $200 more a month, and paying biweekly knocked it down from 23 years to 11. Now we're looking at accelerating it at next renewal to be 3 more years(after current term complete).
 

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Discussion Starter · #6 ·
Well we used to make bi-weekly payments towards the mortgage until they changes DH's pay periods to the 5th and 20th of each month (that took a month or 2 to get used to) now we pay monthly. (Paying bi-weekly knocked off 4 years from 30 years to 26, now we cant.)

I also checked with our mortgage company and there are no penalties for paying more each month so that's a plus. As for an EF, yes we are working on that right now ... building it back up that is. According to the TMMO we only need an EF of $500 because our income is so low so that would only take me 1-2 months to do, even though most do that first, it's not a MAJOR issue right now with us.

The only thing I keep thinking is for the future, ok we pay off our house in 11 years hopefully less, then to think of how much money we could save once that is done, pretending we still have a mortgage to pay thus taking that money and saving it ($665+$300), it would be a nice little bit of money to put towards 50% savings and 50% IRA each month or what have you.
When it's time to pay taxes not a big deal since that's what the savings is for.

It to me means financially securing our future, even though some may perceive that as a no-no.
 

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I think it is great you are looking to pay off your mortage early. But I just wanted to point out that with no debt but the house the EF fund should be 3-6 months of living expenses. Of course it is what ever you are comfortable with doing.
 

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Tracy - I say go for it! I personally would love to be totally debt free, which includes my mortgage and we are trying to pay a little extra each month.
 

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How are your retirement accounts? I'd work on funding those while paying off the house.
 

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Having only one income coming in and especially after the scare you just had I would make sure I had a fully funded EF first, not just the baby EF, before paying off the morgage. Then there would be no reason to "freak out" if something happened and DH's income was cut off temporarily. Once the security of that is in place then go for it. I'm striving to be morgage free myself.
 

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Discussion Starter · #11 ·
Well that's what the other $300 is going towards, getting our 3 months of living expenses in order + during that time we might be able to put more like $400, we would need $3500 to make it for 3 months living expenses.
 

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Do you have any retirement savings?

If it were me, I would fund the emergency fund, and then stash everything I could in a retirement account. Since there are tax benefits to having a mortgage loan, it is not on my priority list to be mortgage free at this point.
 

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Where we live there is NO tax advantage to having a mortgage :( NADA. We don't get to write off anything about a mortgage.
 

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Discussion Starter · #14 ·
When we file our taxes we usually take the standard deduction anyways, so no mortgage interest writeoff for us either.
 

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I agree on the no tax benefit to having a mortgage! Us either. Besides would you really want to pay say for example 10K in mortgage interest to save 2500 in taxes? Heck no!!! Not if you could be mortgage free.

I say go for it Tracy! It looks like you have earmarked funding the EF. Even if alot of us would fund a full EF first that doesn't mean it's right for everyone. I got blasted on a heavy on the "Dave Ramsey" board for Dh adding 5% to his 401 K weekly cuz "Dave Says". I love DR but pointed out it is called "personal finance"

I firmly believe being debt free is safer.
 

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]I agree on the no tax benefit to having a mortgage! Us either. Besides would you really want to pay say for example 10K in mortgage interest to save 2500 in taxes? Heck no!!! Not if you could be mortgage free.

I say go for it Tracy! It looks like you have earmarked funding the EF. Even if alot of us would fund a full EF first that doesn't mean it's right for everyone. I got blasted on a heavy on the "Dave Ramsey" board for Dh adding 5% to his 401 K weekly cuz "Dave Says". I love DR but pointed out it is called "personal finance"

I firmly believe being debt free is safer.
 

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Tracy, we're doing exactly what you're thinking of doing. As soon as we get 6 months of expenses in our EF fund ($12,000) we'll be putting the extra toward our mortgage and, hopefully, have it paid off in 5-6 years. I think it's an individual thing, but personally we love the idea of not having a mortgage and the security of owning our home outright. We figure it'll be very beneficial to be mortgage free in our retirement years. Once we get the mortgage paid off early, the extra money will be going into our retirement funds. Good luck with your plan if you decide to go for it. :)


--Michelle
 

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I say good for you. If you feel that it is right for you and your family go for it.
 

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If it were me personally with 3 kids, I'd want to fully fund the emergency fund first. Then when I got that $3,500 or whatever it was you said you needed - THEN PAY DOWN THAT MORTGAGE!
 

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I think it sounds like a good idea, but some mortgages have pre-payment penalties - so check your fine print.
 
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