We took our tax returns, probably the last ones we'll EVER again see, , and paid off my baby

She's mine and the Tax Man's...woooo hooooo

Now to start rolling over on to the house payment...Thanks Dave (Ramsey, that is)

 

SMART! You keep doing that and tell em all to go to HEL L!

 

Congrats Terry, its a great feeling ain't it.

 

That's great Terry! Let me know when I should tune in to hear you and D say "WE'RE DEPT FREE!!!!"

 

Hey Dan, Thanks!
We only have 20 pmt's left on the house as it stands, do the Dave thing, 10 or less

 

I understand if you have a house payment interest rate that is rather high, but if you have a house loan with an interest rate of under 3%, does it make a whole lot of sense to pay it off early? I refinanced for 2.75, and plan on holding that loan for as long as I can. If you do not plan on financing ANYTHING else in the future, then go ahead and pay it off, but if you plan on financing relatively large purchases in the future (where the interest rate will be significantly larger), it makes better sense to use that money to either buy without financing, or to lower the amount to be financed.

 

Just the opposite if anything, late 50's and want to head into retirement debt free, including my toys, that's all...

 

Congrats! That is awesome!

I love Dave Ramsey, best class I ever took! Paid off my motorcycle, hospital payments, and amazon card in 6 months with that class. All thats left is the car and the house. Car is almost done too!

 

Two payments on Crumpy's which we will do next month together. Then we double up on mine which we bought while dead broke and strctched out way too far. It'll be done this year instead of next. All other vehicles are paid off.

Dave Ramsey has a good plan. We sorta ignored it at our peril and are just now on the beam to get 'er done.

Our house is not under water but since the crash, mortgaged to the max. It won't be paid off unless the business sells for a large profit. Land in Ava Mo gets paid off in 6 years. Sooner if we have a good year.

Barn goes up this summer,,,New house goes up next year. I have been collecting materials and fixtures for 10 years to build each. Barn materials currently piled up under tarps.

House and barn are being built with debt free money,,,,pay as yo go. If we cannot afford it, we just hold off purchase & delay construction until we can. We hope to keep the Crossies but likely will sell at leat one of them. Prolly to fund the kitchen and baths in the house. We cannot drive them to the ranch anyways.

 

Congratulations Terry!

We got mine paid off about 6 months ago, it sure is a good feeling. I owe nobody in this world but the mortgage company

 

Yes Joe, it sure is!!!

 

Have you taken up delivering pizzas in your Crossy?

 

NO WAY!!! LOL! That's why we bought the turbo PT

 

My rent just got quite a bit more expensive, think the Crossfire is a decent pizza hauler for a second job?

 

I have always been told that paying down the mortgage is better than paying off the car. That is because the total interest paid is much greater.

When I was paying off my mortgage I had a formula that told me how much I owed that day. When you have this formula and others similar to it you can see the benefits of even paying off a small sum as the next payment you make will have less interest and more principal payoff in it.

Paying off 10% of your mortgage every year will discharge the mortgage in a little over seven years. With huge savings on the total interest paid. Adding to your mortgage is a huge mistake, but banks love it.

When the time came to make the final lump sum payment I told the bank loans manager that by my calculations I owed them 25 cents more than they asked for. The loans managers name was Penny Moore, which I found rather hilarious.

 

Yes sir, only been in our house 3.5 years and am currently refinancing with a much lower rate and jump to a 15 year from the current 30. Hopefully get the house paid off in 10-12 years

It also pays to have a good credit score, thank God I did not follow the road of many of my peers with credit card debt, mortgaged up to their eyeballs, and crap credit. Thanks Mom and Dad

 

Agreed!! We bought our house on a 10 year 4.65% note to begin with, so not all that much interest to start. We've been very fortunate over the last 37 years, never missed any payments to anyone for anything. I was told as a young man "if you give your word on something, it's your responsibility to make sure you do it." If nothing else in this world has helped me muddle thru the drudgery of day to day work, it has been this core value from my parents. You did it, be responsible for it...

 

Owed a bunch on the Chicago condo but had enough equity in it to pay cash for the home here in Texas. I have a great credit score now that I no longer need it. From here on out it will be a cash buy or a no buy.

 

That certainly made sense when home mortgage interest rates were way up around 12-14% like they were when I bought my first house. But at 2.75%, there's not much sense in paying it off early if there's the possibility of having to finance anything else down the road... such as children's college education, new car, new garage, etc. If cash is flush, and there's no need for future financing, then certainly it makes sense to pay if off. However, one good thing about having a low-interest mortgage is that it helps your credit score.
Also, keep in mind the interest on a mortgage is tax deductible, but the car loan interest is not.

 

That is taking a short term view, should the rates double and they will,it will be harder to pay down the debt as your payments will go up by 30% and the interest paid more than doubled.
At that time you will wish you had paid some or all of it off.