What age did you pay off your "forever" home

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ugaDAWGS09
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What age did you pay off your "forever" home

Post by ugaDAWGS09 » Wed Jan 21, 2015 12:25 pm

What age did you pay off your "forever" home and how did you do it? My wife and I built our forever home in 2011, and we are working hard to pay it off. We started small by paying one extra payment a year the first two years, but now we are adding 850 a month to the principal (started about a year ago), and occasionally we add a lump sum (just added 5k to last months payment).

Our goal is to have it paid off before 40 years old. We could have been investing some of this money in a taxable account, but we haven't let it stop us from maxing our tax-deferred accounts. My wife hopes to retire around 50-55, so having our home paid off way before then will definitely help her reach this goal.

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JDCarpenter
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Re: What age did you pay off your "forever" home

Post by JDCarpenter » Wed Jan 21, 2015 12:57 pm

45/44 -- when we finally read the economic writing on the wall, and relocated several hundred miles--thereby forcing us to sell our dream/forever home after only a dozen years in it. :oops:

Now, after 10 years, we continue to enjoy our "good enough for a few more years" home. :-)
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Re: What age did you pay off your "forever" home

Post by dbCooperAir » Wed Jan 21, 2015 1:34 pm

I'm not sure if I would call this our forever home, been in our starter home for 20+ years now but we paid it off when we turned 40. If we do upgrade/move I would expect us to use the dollars from the current home + cash for a new home if we decide to go in that direction.
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Re: What age did you pay off your "forever" home

Post by sport » Wed Jan 21, 2015 1:40 pm

We did not have a "forever home". We had a nice starter home, paid it off in 20 years, and lived there for 35 years. We then moved to our retirement home. By avoiding an extravagant home during our accumulation years, we were able to save more for retirement.
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GerryL
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Re: What age did you pay off your "forever" home

Post by GerryL » Wed Jan 21, 2015 2:07 pm

Bought what I refer to as my "first/second" house when I was in my early 40s and paid it off just after I hit 65. It is modest but more than I ever thought I would have in a first house -- and as much as I need. Did a big remodel to freshen up the insides just after it was paid off. Plan to live here until I can no longer manage on my own. Guess that makes it my forever home.

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steve roy
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Re: What age did you pay off your "forever" home

Post by steve roy » Wed Jan 21, 2015 2:09 pm

Don't believe in "forever" homes, but only in houses that suit needs ... until they don't.

While single, I bought a 950 square foot house that, with wife and children, became too small. Sold it after a few years and purchased a fixer-upper that we've lived in for twenty-one winters. That abode will be sold in the next forty months, just as soon as we both retire and get the younger child through college. I like the house well enough, but I won't be sorry to free myself from the big fat swimming pool that came with it.

As for house payments? We used the second house as an ATM for years. Bought it for $318k in 1994; in 2014 we owe $270k on it. Happily, we have lots of equity on top of that. As long as the San Andreas fault doesn't get too frisky, we assume the equity will remain in place until we sell.

furwut
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Re: What age did you pay off your "forever" home

Post by furwut » Wed Jan 21, 2015 2:15 pm

Not yet. Still making payments on the grave plot but having second thoughts. The neighborhood is none too lively.

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FrugalInvestor
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Re: What age did you pay off your "forever" home

Post by FrugalInvestor » Wed Jan 21, 2015 2:17 pm

We've never had a 'forever' home and doubt we ever will, at least not knowingly. Things change...needs change, circumstances change, neighborhoods change, desires and tastes change. I don't want to be stuck in any home forever. However, the first home that we owned without a mortgage was when I (early) retired. I didn't want a mortgage any longer and the economics of a mortgage changed due to retirement. We stayed in that house for twelve years and recently purchased another home in another state. I expect we'll be in this one for five to ten years and then I imagine that we'll be ready for new surroundings again.
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WorkToLive
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Re: What age did you pay off your "forever" home

Post by WorkToLive » Wed Jan 21, 2015 2:21 pm

Ages 39 me and 38 husband.

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Re: What age did you pay off your "forever" home

Post by Andyrunner » Wed Jan 21, 2015 2:29 pm

We bought our what we expect to be out forever home at age 30 (about a year ago). At our current rate, our goal is to pay it off in 10 years. We have a young child and want one more. The one more might push it out a few years, but I'm hoping to pay it off in 15 max.

We could put more into tax deferred accounts (we max both 401ks and no IRAs), but I very much like the idea of no debt.

The big issue is there are so many variables within a 10-20 year time period.

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gasdoc
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Re: What age did you pay off your "forever" home

Post by gasdoc » Wed Jan 21, 2015 2:35 pm

furwut wrote:Not yet. Still making payments on the grave plot but having second thoughts. The neighborhood is none too lively.


I get it! :D

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Re: What age did you pay off your "forever" home

Post by HueyLD » Wed Jan 21, 2015 2:38 pm

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Re: What age did you pay off your "forever" home

Post by livesoft » Wed Jan 21, 2015 2:39 pm

We didn't buy a home until we were in our late thirties. Paid it off in our early fifties after selling shares of VWO after they went up 75% in one year and almost 20% the next year.
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Re: What age did you pay off your "forever" home

Post by gwrvmd » Wed Jan 21, 2015 2:46 pm

At 50, 15 years before retirement. If you do it before 50 you have done very well......Gordon
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Sheepdog
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Re: What age did you pay off your "forever" home

Post by Sheepdog » Wed Jan 21, 2015 3:09 pm

We bought our last house (had 2 previously) with a 20 year mortgage when I was 38, so it was paid off when I was 59.
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Re: What age did you pay off your "forever" home

Post by Jack FFR1846 » Wed Jan 21, 2015 3:22 pm

44. We always overpaid mortgages and would do no cost refi's to save $12 a month. Whittled the 30 year down in amount and swung to a 15 and kept paying down. Made some money in stock options and paid off the last $50k.
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FelixTheCat
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Re: What age did you pay off your "forever" home

Post by FelixTheCat » Wed Jan 21, 2015 3:26 pm

Early 40s. It's my ok home for now.

I loved my last company. I was there for 17 years. I watched the owner grow it, sell it and have new management run it into the ground. I watched 80% of the staff get laid off. I thought I better have a plan and make sure I have a house to live in so I paid mine off. It was the best decision I ever made. When I got laid off, I simply smiled knowing I was ok.
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Re: What age did you pay off your "forever" home

Post by basspond » Wed Jan 21, 2015 3:53 pm

46 after the best financial move we made by refinancing to a 15 year mortgage, else it would have been 60.

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Re: What age did you pay off your "forever" home

Post by pennywise » Wed Jan 21, 2015 4:03 pm

I was 37 YO, spouse was 41 YO. We had taken paid 2/3 of the price for our house in cash a few years earlier and taken out a small mortgage because at that point our children were very young, I was working PT and we didn't want to be pinched if the budget was tight.

After 3 years or so the budget was fine and it was annoying to have to make the payment when we had the money in the bank so we paid it off. That allowed us to fund our children's pre-college education without worry and now that we are 57/61 respectively retirement is literally our choice of days partly because our cost of housing is so low. Bonus is that the bell curve of people/house is back on the pleasantly expansive side; 2 of the 4 of us in the family are either out or moving out. What was sometimes a bit of a snug fit for a family of four is just fine for a couple.

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Peter Foley
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Re: What age did you pay off your "forever" home

Post by Peter Foley » Wed Jan 21, 2015 4:07 pm

Needs change as one ages, kids grow up and leave, etc

I was about 50 when we paid off the home our kids grew up in. We stayed for another 11 years and then paid cash for our current house. This house is one story and lower maintenance. We hope to be here for another 15 to 20 years.

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Re: What age did you pay off your "forever" home

Post by curmudgeon » Wed Jan 21, 2015 4:33 pm

We haven't (yet) at age 55. We had a perfectly adequate house that would have been paid off by now if we stayed there, but 12 years ago we decided to "move up", which meant taking a new larger mortgage. I wouldn't recommend this for everyone, but given our particular tax and income situation, I'm content with the choice we made.

We could pay off the mortgage now, but I've chosen to retain the leverage and keep more in the market. When we retire, if we stay here I would expect to de-leverage either by paying off the mortgage or by setting some sort of liability matching bond position (if FI rates at the time make that profitable). Most likely, though, we will move to a lower cost/tax location when the job no longer holds us in silicon valley.

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Re: What age did you pay off your "forever" home

Post by Longdog » Wed Jan 21, 2015 6:10 pm

I paid off my "forever" home at 40. Less than a year later I started a new job in a different state, sold it, and moved all of the principal into my new "forever" home. :happy I don't understand why it would matter whether it is your final home or not - capital can be transfered from one asset to another, and nobody can ever know for sure whether their current home is their "forever" home because circumstances change; life happens.
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obgyn65
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Re: What age did you pay off your "forever" home

Post by obgyn65 » Wed Jan 21, 2015 7:27 pm

I bought my "forever home" home in 2008 when I turned 43. It's a small condo in a skyscraper of a major city. Everything I need is next door to the building. I can imagine myself getting old in this place.
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Re: What age did you pay off your "forever" home

Post by Carefreeap » Wed Jan 21, 2015 10:18 pm

LOL, at the concept of a "forever" home. We've bought at least two, maybe three. :wink:

We paid off our current home in 2010 when DH was 51 and I was 48. We were in the process of retirement planning and given the low returns we were getting on a big chunk of cash we had in the bank it seemed to make sense for us to pay off the 5.25 mortgage with money earning less than 1%. Of course had we known the stock market was going to roar back to life we would have been better off keeping the mortgage and nearly doubling our money!. :D

ETA: I should add that we were also facing some variable income in our early retirement. So we paid off the house but kept the mortgages on three of the rentals.
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Re: What age did you pay off your "forever" home

Post by grabiner » Wed Jan 21, 2015 10:24 pm

I bought my home a year ago with a 15-year mortgage. I could pay off the mortgage if I wanted to, as I have a large taxable account, but with the low rate and a large capital-gains tax if I sell stock, it doesn't make sense. I expect to carry the mortgage to term, or possibly to pay it off a few years early if rates are still low.
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Re: What age did you pay off your "forever" home

Post by scrabbler1 » Thu Jan 22, 2015 12:50 am

Not sure if it my forever home but it probably is. I bought my co-op apartment in 1989 just before I turned 26. I was single and childfree at the time and remain so today. Nine years later, in 1998, just after I turned 35, I paid off the mortgage. It was a big step toward being able to retire 10 years after that (in 2008) at age 45.

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Re: What age did you pay off your "forever" home

Post by Bungo » Thu Jan 22, 2015 1:38 am

I'll pay it off when I retire, move out of Silicon Valley and buy a house for 1/3 the price somewhere else. If all goes according to plan, anyway.

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Re: What age did you pay off your "forever" home

Post by stemikger » Thu Jan 22, 2015 1:59 am

jsl11 wrote:We did not have a "forever home". We had a nice starter home, paid it off in 20 years, and lived there for 35 years. We then moved to our retirement home. By avoiding an extravagant home during our accumulation years, we were able to save more for retirement.
Jeff


+1

This is the route I'm taking. I bought a brand new Starter Home, so for the first 10 years there was very low maintenance. I often wonder if this will be my forever home. My guess is that when I retire I will move to Florida but it's hard to predict the future especially when retirement is not for another ten years. I paid off my 30 year mortgage in 20 years. I was 48.
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Flobes
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Re: What age did you pay off your "forever" home

Post by Flobes » Thu Jan 22, 2015 3:00 am

Bought it at 50; paid it off at 57.

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Re: What age did you pay off your "forever" home

Post by HongKonger » Thu Jan 22, 2015 4:08 am

Bungo wrote:I'll pay it off when I retire, move out of Silicon Valley and buy a house for 1/3 the price somewhere else. If all goes according to plan, anyway.


Did the same. Paid cash 18 months ago.

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Re: What age did you pay off your "forever" home

Post by JohnF » Thu Jan 22, 2015 12:33 pm

When purchased at age 47.

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Re: What age did you pay off your "forever" home

Post by feh » Thu Jan 22, 2015 12:56 pm

Not sure what you mean by "forever" home. I'm sure we'll be buying at least one more house in our lifetime.

We bought our current house for cash. I think that'll be the case with the next one also. I was about 38 the last time I had a mortgage payment.

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Re: What age did you pay off your "forever" home

Post by Crimsontide » Thu Jan 22, 2015 12:58 pm

Time will tell if it's our "forever" home or not, we paid off the house we are in currently at age 49.

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Toons
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Re: What age did you pay off your "forever" home

Post by Toons » Thu Jan 22, 2015 1:07 pm

We paid off our "forever"home immediately ,cash. :happy
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Re: What age did you pay off your "forever" home

Post by chaz » Thu Jan 22, 2015 1:14 pm

Toons wrote:We paid off our "forever"home immediately ,cash. :happy

Us also on close of escrow! :D
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Garco
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Re: What age did you pay off your "forever" home

Post by Garco » Thu Jan 22, 2015 2:08 pm

We had a 30 year mortgage on our ever-only home, which we still live in. Paid it off at age 62.

We may move post-retirement. There will be no mortgage. It will be a cash deal.

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Re: What age did you pay off your "forever" home

Post by batpot » Thu Jan 22, 2015 2:18 pm

We hope we're in it now, and after a refi, should have it paid off in about 20 years, at age 55.

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Re: What age did you pay off your "forever" home

Post by bhsince87 » Thu Jan 22, 2015 2:20 pm

49 and 47. It will probably only be "forever" until we decide to downsize.
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Re: What age did you pay off your "forever" home

Post by epilnk » Thu Jan 22, 2015 3:04 pm

50-ish? We could have paid it off a few years earlier but saw no reason to do so. Also this is our third house, but not our "forever" house; I don't see us staying here after our kids are grown.

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Re: What age did you pay off your "forever" home

Post by Ron » Thu Jan 22, 2015 3:19 pm

Assuming our current home is our last to purchase/build, we were both 51.

It is our 4th home since being married and we were able to roll profits from prior homes, putting down over 50% at the time we bought the lot and built the home. We paid it off in 5.5 years, redirecting the monthly payment to our respective 401(k)'s. This was done in late 1999, just at the beginning of the 2000-02 downturn.

We purchased the market cheap in those years. No counting for dumb luck.

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Re: What age did you pay off your "forever" home

Post by jstrazzere » Thu Jan 22, 2015 3:26 pm

I'm 60, and I'm still not sure yet what will be our forever home. That would depend a lot on our children and grandchildren.
I can't imagine knowing "forever" at 40.

That said, our primary home was paid off long ago. When we retire, we'll either sell that home and move into our second home "forever", or sell both and settle into a "forever" home.

We paid off the primary home by refinancing several times when the interest rates were attractive. Each time, we also shortened the mortgage period as well. Eventually - all gone.

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Re: What age did you pay off your "forever" home

Post by JimmyD » Thu Jan 22, 2015 3:38 pm

We're 32 and having just purchased our first, jointly-owned house with a 30 year mortgage at 3.3% two years ago, we're looking at another 28 years :shock:. If we come into a windfall, we'll look at paying it down, but given the rate, we have other goals that we're more focused on.

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Re: What age did you pay off your "forever" home

Post by AZMax » Fri Jan 23, 2015 2:56 pm

This is intended to be instructional, not gloating.
Purchased first home at age 22 with 15 yr mortgage @8.5%. Made double payments and paid it off in 7 years. You do this by getting a place commensurate with one income and paying on it with two incomes.
Then used that equity and other savings to buy house #2 at age 30. Paid the small balance remaining off within 2 years. Still here 20+ years later with no intention to go elsewhere anytime soon.
So age 32 is the short answer to your question.

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Re: What age did you pay off your "forever" home

Post by VictoriaF » Fri Jan 23, 2015 3:00 pm

"Forever" home? It sounds like a house of cards built with "forever" stamps.

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Re: What age did you pay off your "forever" home

Post by aprilcpa » Fri Jan 23, 2015 5:05 pm

We built our house at age 22 and paid it off at age 35. I'm 42 now and we may change our mind that this is our "forever" home but for now, it will be.

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Re: What age did you pay off your "forever" home

Post by 4ransom » Fri Jan 23, 2015 5:23 pm

We are retired in our 60s. My wife is in the process of selling our 3rd forever home and building the 4th, it keeps her happy and busy, but I swear if this one doesn't kill me-never again.

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Re: What age did you pay off your "forever" home

Post by DFrank » Fri Jan 23, 2015 5:26 pm

We bought our forever home about 1 year ago when I was 58, my wife was 49. It's paid for.

We do still have a mortgage on the home we live in now, but that home will be sold in a year or two when we retire, the mortgage will be paid off, and the equity will go into our retirement kitty.
Dave

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Re: What age did you pay off your "forever" home

Post by john94549 » Fri Jan 23, 2015 5:46 pm

We're currently both 67, and "might" pay it off this year or next. No great rush, as our interest rate is 3.4% and has 28 years or so to run. Given Garn-StGermain, we might never pay it off, and let the kids "inherit" the rate. It's an option we've considered. We re-fi'd a couple of years back when rates were at their nadir with Garn-StGermain in mind. This exception to the "due-on-sale" clause is worthy reading for retirees or near-retirees doing estate planning.

Should we both die before the mortgage term has run its course (somewhat likely), the kids would have the option of "inheriting" the mortgage for the term remaining, if they wished. As noted, it is an exception to the normal "due-on-sale" clause in mortgages.

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Re: What age did you pay off your "forever" home

Post by virgingorda » Fri Jan 23, 2015 6:21 pm

VictoriaF wrote:"Forever" home? It sounds like a house of cards built with "forever" stamps.


Haha I thought "forever home" was for adopted pets!

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Re: What age did you pay off your "forever" home

Post by danwhite77 » Fri Jan 23, 2015 6:26 pm

We bought what we hope will be a home we stay in for 20 years or so for cash a few years ago at ages 35 (me) and 34 (DW).
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