Congrats! We're doing just the opposite. Ours is paid off, free and clear, and we're in the process of getting permits and a construction loan to tear it down and build a new one. LOL I think we might be crazy!
Whoo hoo! Homestead is ALL OURS as of today!!
- Thread starter 69hurstolds
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It was somewhat of a sacrifice but once we got used to it, it wasn't that bad. Originally at the end of last year we decided we'd get it paid off by April of 2020, then I was shooting for January, but when we got a big fat check back from tax refund (thanks Donald!) we decided we'd do it as soon as we could. We scrimped some, but it paid off. I can't remember how much interest we saved, but it wasn't chump change. Just about every time we had extra money, to the house payment it went. We kinda modeled it after Dave Ramsey's snowball, but the monthly amounts varied but we always paid more than the minimum.
Now on to her 2016 Caddy payment and we still should save money and pay that off way early too. It's the last loan we have. It's at 1.7% for 5 years and we're about 1/2 way in and only 369/month, so I'm not in a super hurry to pay it off, but I'm figuring by around the end of this year or so....then it's just utilities and taxes that we would owe. Could do it now, but then I'd have to touch the 85 442 fund or our rainy day fund. Interest per month is less than us going to Arby's for one meal, so to me, it's not worth it, and keeps me from getting fatter at Arby's. 🙂
Streetbu it's not crazy at all. We contemplated doing that with our last house. With the permits and plans and estimations to do the additions and everything to the old structure, we could have demo'ed it and rebuilt the entire thing for just a few grand more. That's the crazy part. Although there wouldn't be much room left on our postage stamp yard for a garage. But we decided to build out in the country, so here we are! 7 acres of MY LAND. That's fun to say. So when the kids come into the yard, I can say "Get out of MY yard!" and actually mean it. It's a great feeling to get that huge chunk of debt out from under you, that's for sure.
Now on to her 2016 Caddy payment and we still should save money and pay that off way early too. It's the last loan we have. It's at 1.7% for 5 years and we're about 1/2 way in and only 369/month, so I'm not in a super hurry to pay it off, but I'm figuring by around the end of this year or so....then it's just utilities and taxes that we would owe. Could do it now, but then I'd have to touch the 85 442 fund or our rainy day fund. Interest per month is less than us going to Arby's for one meal, so to me, it's not worth it, and keeps me from getting fatter at Arby's. 🙂
Streetbu it's not crazy at all. We contemplated doing that with our last house. With the permits and plans and estimations to do the additions and everything to the old structure, we could have demo'ed it and rebuilt the entire thing for just a few grand more. That's the crazy part. Although there wouldn't be much room left on our postage stamp yard for a garage. But we decided to build out in the country, so here we are! 7 acres of MY LAND. That's fun to say. So when the kids come into the yard, I can say "Get out of MY yard!" and actually mean it. It's a great feeling to get that huge chunk of debt out from under you, that's for sure.
Great accomplishment! I need a 3000 sf shop and a 600 sf house. One bathroom. Less cleaning. More shop time.
I bought my house in 94 when I was turning 40. Spent every extra quarter earned building an addition on as big as the house itself. Did it the same way I do my project car, save enough to do one phase and pay cash. Took a few years but at the same time got the mortgage payed off 5 years ago,which was 10 years early. The only thing that sucks about having a mortgage payed off is getting hit with the big tax bill that you now have to pay yourself. Now days the tax reurn from The Donald goes to pay that.
Congrats on being diligent. We have a household bank account we both contribute to automatically, so it's essentially our own "escrow" account for all that. So the only real difference now is that we can contribute a LOT less to that escrow but still keep that funded. Besides, this year they're going to give us back around 2/3 of what our tax/insurance bill would be at the end of this year out of the bank's escrow account since they make you have a buffer in the escrow anyway. So it's really not going to affect us hardly at all until December 2020. You'll always have a "house payment" of sorts even if it's paid off. Just like the cars. Just that in comparison, the taxes/insurance monthly amount is a heck of a lot cheaper to fund.
Regardless, effectively we just got a helluva good pay raise!
Make sure you keep paying the home owner insurance. Old guy in town had a gas heater on the porch that failed and lit up the back of the house. FD down the street put it out before it spread, but the old guy let the insurance lapse and he has little in savings to deal with the smoke damage and repairs. Been sitting abandoned for two years now.
Cool, congrats!
Only 24 more years here 🤣
And yea, anyone who doesn't carry homeowners insurance is kind of crazy. Almost as dumb as people who drive without it.
Only 24 more years here 🤣
And yea, anyone who doesn't carry homeowners insurance is kind of crazy. Almost as dumb as people who drive without it.
