[Poll] How long did you hold primary residence mortgage?

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How long did you have mortgage on your current primary residence?

0-1 yrs
4
2%
1-3 yrs
11
6%
3-6 yrs
13
8%
6-10 yrs
25
14%
10-15 yrs
30
17%
15-25 yrs
23
13%
25+ yrs
5
3%
bought in cash
14
8%
currently paying mortgage
45
26%
currently renting
3
2%
 
Total votes: 173

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acegolfer
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[Poll] How long did you hold primary residence mortgage?

Post by acegolfer » Thu Mar 12, 2015 3:33 pm

1. This is for your current primary residence. But if you prefer, use your previous home.
2. If you are near pay off, or prefer to, select the target years that you plan to pay off.
3. If refinanced, include all years.
4. This may not be great for comparison because every situation is different and there are many factors that influence the decision. IOW, this is not a scientific poll.

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mickeyd
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Re: [Poll] How long did you hold primary residence mortgage?

Post by mickeyd » Thu Mar 12, 2015 4:32 pm

We had a 15 year mortgage (I thing it was about 6-7%) and repaid it in about 7 years.
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Carefreeap
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Carefreeap » Thu Mar 12, 2015 4:57 pm

While it's free and clear now I think we refinanced this house 5x from the time we bought it in 1995. I used to joke that we refinanced every two years whether we needed to or not! :wink:
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cheese_breath
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Re: [Poll] How long did you hold primary residence mortgage?

Post by cheese_breath » Thu Mar 12, 2015 5:08 pm

We bought our first 'real' home, not counting the mobile home starter home, in 1968 with a 6.75% mortgage and kept the same mortgage until we sold in 1980. Our current home was remortgaged twice to reduce the interest rate before we paid it off.
The surest way to know the future is when it becomes the past.

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Steelersfan
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Steelersfan » Thu Mar 12, 2015 5:20 pm

Six years into a 15 year mortgage.

Paid extra each month to accelerate the payoff and just paid the darn thing off entirely with a lump sum when it got small enough.

likegarden
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Re: [Poll] How long did you hold primary residence mortgage?

Post by likegarden » Thu Mar 12, 2015 5:20 pm

10 years of 30 year mortgage on first house, then job transfer and 2 years for 2nd house, then job transfer and full 15 years on 3rd house.

DVMResident
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Re: [Poll] How long did you hold primary residence mortgage?

Post by DVMResident » Thu Mar 12, 2015 5:30 pm

Stayed in primary residence for 2 years before job change.

Kept house as a rental. About ~3 years into a 30 year mortgage at 3.5%. Planning to keep it to term, but we'll see where life takes us.

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Jake46
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Jake46 » Thu Mar 12, 2015 6:46 pm

Paid cash. Hate debt.

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mhc
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Re: [Poll] How long did you hold primary residence mortgage?

Post by mhc » Thu Mar 12, 2015 6:57 pm

Just shy of 7 years. I wanted to be debt free by 40. I made it with 6 weeks to spare.

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MikeWillRetire
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Re: [Poll] How long did you hold primary residence mortgage?

Post by MikeWillRetire » Thu Mar 12, 2015 7:03 pm

Started with a 30-year mortgage, refinanced to a 15-year, and then paid it off with a home equity loan. So almost 25 years total.

Billyboy
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Billyboy » Thu Mar 12, 2015 7:04 pm

First house purchased new in 1970, held for seven years, sold and purchased larger new home in the same town, held it for 20 years, re-fied several times paying for living expenses, i.e., remodeling that house slightly, paying for kids college educations, their first automobiles, etc. Sold that house and moved into an even larger new house in the same town and have been here 17 years.

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Wildebeest
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Wildebeest » Thu Mar 12, 2015 8:04 pm

Carefreeap wrote:While it's free and clear now I think we refinanced this house 5x from the time we bought it in 1995. I used to joke that we refinanced every two years whether we needed to or not! :wink:

I can not remember how many times we refinanced, but it sure felt like every two years. I was grateful, that when we bought,the mortage rates were much higher, because otherwise I would have insisted on an even bigger house with an ever higher mortgage.

I recall when our son was 7 years old, he was very taken with "our" house. I told him, it was not our house and that it was the bank's house . He was disappointed. But it was true. The bank owned it and we were paying the bank for the privilege of living there, while we had to pay the real estate taxes.

We changed from a 30 year to a 15 year mortgage and then paid it off early.
The Golden Rule: One should treat others as one would like others to treat oneself.

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Crimsontide
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Crimsontide » Thu Mar 12, 2015 8:11 pm

Had a 30 year mortgage, refinanced once to a 15 year with a much lower interest rate but then paid it off after 5 years.

Birders
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Birders » Thu Mar 12, 2015 8:39 pm

39 months to pay off. Put 40% down and financed the rest. We have been in the house 8 years now.

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Chin00k
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Chin00k » Thu Mar 12, 2015 11:13 pm

Ric Edelman says you should carry a big, long mortgage and not pay it off quickly:
http://www.edelmanfinancial.com/educati ... g-mortgage

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Peter Foley
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Peter Foley » Thu Mar 12, 2015 11:32 pm

On our previous home we had a 15 year mortgage and refinanced once after a couple of years. We paid that second mortgage off in about 10 years, just in time for my eldest daughter to start college. [That was our plan.] So 12 total.

letsgobobby
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Re: [Poll] How long did you hold primary residence mortgage?

Post by letsgobobby » Fri Mar 13, 2015 12:37 am

I've only paid off mortgages by refinancing the loan or selling the home. Condo: 4 years (sale). First home: 6 months (refi), 5 years (refi), 2 years (sale). Second home: 6 months (refi), 2 years (refi), 2 years (sale: target).

The house we're moving into, we have 10 years remaining on a 12 year mortgage. We will aim to pay it off in 10 more years, but based on past history we won't make it. We'll either sell or refinance.

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celia
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Re: [Poll] How long did you hold primary residence mortgage?

Post by celia » Fri Mar 13, 2015 2:01 am

Wildebeest wrote:I recall when our son was 7 years old, he was very taken with "our" house. I told him, it was not our house and that it was the bank's house . He was disappointed. But it was true. The bank owned it and we were paying the bank for the privilege of living there, while we had to pay the real estate taxes.
If your name was on the title, it was yours. If the bank's name was on the title as the owner, then it was the bank's.

Instead of killing the kid's excitement, I would have told him, you saved up several years to pay for it but borrowed a lot from the bank that you have to pay back. Why wouldn't you take advantage of the situation to simply explain how a major purchase was made and that it involved savings? I think that would be the Boglehead way.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.

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Wildebeest
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Wildebeest » Fri Mar 13, 2015 5:19 am

celia wrote:
Wildebeest wrote:I recall when our son was 7 years old, he was very taken with "our" house. I told him, it was not our house and that it was the bank's house . He was disappointed. But it was true. The bank owned it and we were paying the bank for the privilege of living there, while we had to pay the real estate taxes.
If your name was on the title, it was yours. If the bank's name was on the title as the owner, then it was the bank's.

Instead of killing the kid's excitement, I would have told him, you saved up several years to pay for it but borrowed a lot from the bank that you have to pay back. Why wouldn't you take advantage of the situation to simply explain how a major purchase was made and that it involved savings? I think that would be the Boglehead way.
Hi Celia,

I like your way of thinking. At the time I did explain to what my son transaction costs, what a mortgage was, what being house poor means and that I hoped to make money, selling the house in future and the concept of "The millionaire next door" : Big hat, no cattle as much as a 7 year old can take in ( he was a smart one) .

My parents were always very open with me from a very early age on how buying a house or business worked, the in's and out's of loans. They were small business owners and my father did not want "to work for the bank" by taking more loans out, may be I was trying to channel my father, when talking to my son.

I am grateful to my parents for sharing how they dealt with finances. I am gratified that my son reads the Wiki here, read "Millionaire next door when he was an "impressionable" teenager and I believe he will use the New York Times calculator rent versus buy when they buy a house. And I like to think that his parents played a role in this.

As far as the Boglehead way: I did not know that there was a consensus. Whenever about I read on the Forum about financial discussions with children, I got the impression that a lot of Bogleheads recommend not to discuss their finances with their off spring.

I would love to see a Wiki on educating your child on finances.

Wildebeest
The Golden Rule: One should treat others as one would like others to treat oneself.

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Toons
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Toons » Fri Mar 13, 2015 6:03 am

Cash :happy
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pacodelostigres
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Re: [Poll] How long did you hold primary residence mortgage?

Post by pacodelostigres » Fri Mar 13, 2015 6:54 am

A little under two years on a 15 year mortgage. I'm a big advocate for paying off mortgages early.

h8 2 lose
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Re: [Poll] How long did you hold primary residence mortgage?

Post by h8 2 lose » Fri Mar 13, 2015 7:27 pm

7 years, into a 30. I plan on paying it off within the next 3 years

dad2000
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Re: [Poll] How long did you hold primary residence mortgage?

Post by dad2000 » Fri Mar 13, 2015 7:53 pm

Primary house paid off in 7 years into a 15.

Paid off the vacation home today, 2.5 years into a 5 year loan.

I'm debt free for the first time in 20 years. It feels good.

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joe8d
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Re: [Poll] How long did you hold primary residence mortgage?

Post by joe8d » Fri Mar 13, 2015 9:07 pm

Jake46 wrote:Paid cash. Hate debt.
+1 Same here.
All the Best, | Joe

Topic Author
acegolfer
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Re: [Poll] How long did you hold primary residence mortgage?

Post by acegolfer » Tue Mar 17, 2015 10:13 am

I'm surprised to see 47% (54 out of 113) paid off the mortgage early in less than 10 years. (if you exclude paid with cash folks, 42% = 43 out of 102).

I always thought BH would like to keep the low rate mortgage and invest in market.

EyeDee
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Mortgage

Post by EyeDee » Tue Mar 17, 2015 10:22 am

.
I marked 10-15 years, although it was only a couple months over 10 years.

What low rate mortgage? We were paying 13.5% + 0.25 PMI.
acegolfer wrote:I'm surprised to see 47% (54 out of 113) paid off the mortgage early in less than 10 years. (if you exclude paid with cash folks, 42% = 43 out of 102).

I always thought BH would like to keep the low rate mortgage and invest in market.
Randy

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acegolfer
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Re: Mortgage

Post by acegolfer » Tue Mar 17, 2015 10:51 am

EyeDee wrote:.
I marked 10-15 years, although it was only a couple months over 10 years.

What low rate mortgage? We were paying 13.5% + 0.25 PMI.
While you were paying 13.5%, did you also invest with taxable account? I'm curious why you kept the 13.5% mortgage for 10 years without paying off or refinancing?

Andyrunner
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Andyrunner » Tue Mar 17, 2015 11:44 am

Currently have a 30yr mortgage at 4.25%. Goal is to have it paid off in less then 10 years. I could refinance to a 15yr but I like the flexability in case we need it. In this first year we paid off 10% of principle already.

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prudent
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Re: [Poll] How long did you hold primary residence mortgage?

Post by prudent » Tue Mar 17, 2015 11:47 am

21 years. Started paying extra from the start, but then my wife wanted to retire from her job so we had to cut the amount of the extra payments.

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Cosmo
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Re: [Poll] How long did you hold primary residence mortgage?

Post by Cosmo » Tue Mar 17, 2015 12:38 pm

I am in year 3 of a 15 year mortgage @ 2.875%.

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ResearchMed
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Re: Mortgage

Post by ResearchMed » Tue Mar 17, 2015 12:54 pm

acegolfer wrote:
EyeDee wrote:.
I marked 10-15 years, although it was only a couple months over 10 years.

What low rate mortgage? We were paying 13.5% + 0.25 PMI.
While you were paying 13.5%, did you also invest with taxable account? I'm curious why you kept the 13.5% mortgage for 10 years without paying off or refinancing?
Sounds like EyeDee is referring to a past mortgage, so perhaps they are still in that same house.

My first mortgage was about 17.5%, and I was thrilled to refi rather soon to about 13%, and then again to about 10.5%.
(Then I converted the 3-family to condos, and sold, getting my head start that way. Wanted to "do that again", but couldn't find a property then with the same potential.)

Now, we are about 10+ years into an adjustable 30 year, which we refi'd some years ago.
We didn't really expect still to be living here (and now we can't imagine leaving), and we sure didn't expect how low the rate has gone (jumbo at less than 2.5%).
No way do we want to pay that off.

We also didn't expect to consider any appreciation, if any, into our retirement planning.
However, the recovery since 2008 has really surprised us, and it's difficult to ignore.
I'm not really sure what to do with the possible extra, in planning terms, but we'll probably continue to ignore it in actual $$ terms for planning purposes until/unless we sell and realize any such profit.
But I guess I now do keep at least part of that in the back of my mind in terms of "maybe it will be more" when doing serious planning/estimates.

RM
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EyeDee
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Re: Mortgage

Post by EyeDee » Tue Mar 17, 2015 2:06 pm

acegolfer wrote:
EyeDee wrote:.
I marked 10-15 years, although it was only a couple months over 10 years.

What low rate mortgage? We were paying 13.5% + 0.25 PMI.
While you were paying 13.5%, did you also invest with taxable account? I'm curious why you kept the 13.5% mortgage for 10 years without paying off or refinancing?
.
It was a 30 year mortgage so we did pay it off in just over 10 years. The mortgage allowed paying principal ahead. We were just starting out so we started paying one month's interest and two months principal every month, then we started paying several months principal each month until the extra payments got to be too much and we went back to two months principal each month. We thought about refinancing, but at the time it cost several thousand dollars to refinance and once we got going on paying ahead it made more sense to use that money to pay more principal. We ended up paying a third of the interest we would have paid if we had not paid the extra principal.

Yes, we did slowly invest in taxable at the time, but interest rates dropped enough that we could not get CD's at the rate of our mortgage so continuing to pay the mortgage down made sense to us.
----
Yes, PM we are in the same house.
Randy

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grabiner
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Re: [Poll] How long did you hold primary residence mortgage?

Post by grabiner » Tue Mar 17, 2015 8:54 pm

acegolfer wrote:I'm surprised to see 47% (54 out of 113) paid off the mortgage early in less than 10 years. (if you exclude paid with cash folks, 42% = 43 out of 102).
A lot of people probably paid off early because they sold.
I always thought BH would like to keep the low rate mortgage and invest in market.
This is a common subject of discussion on the forum: Paying down loans versus investing

I believe in paying down a mortgage if the after-tax yield on low-risk bonds of the same duration is lower; that is, if you can earn 3% risk-free by paying down your mortgage which has 10 years to go, or 2% with low risk by investing in 10-year municipal bonds, then it makes sense to pay down your mortgage faster.

Currently, I could earn 2.28% by investing in Long-Term Tax-Exempt Admiral shares, or 1.89% after federal tax by paying down my mortgage which has 14 years to go. At that rate, it doesn't make sense for me to pay down the mortgage; I would rather retain the right to borrow money at 2.625% (1.89% after federal tax) for as long as possible. If rates stay this low when my mortgage has six years to go, so that the comparably fund is Intermediate-Term Tax-Exempt at a 1.69% yield, I will pay down the mortgage then.

I don't actually hold the muni funds mentioned here, but they give a fair comparison, because they would be a reasonable investment. (I hold all my bonds in my employer plan.)
Wiki David Grabiner

nekrad
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Re: [Poll] How long did you hold primary residence mortgage?

Post by nekrad » Wed Mar 18, 2015 12:38 am

I have a about 10 or 12 years left on a 15 year mortgage. I refinanced at 2.65% so, as much as I'd like the house to be paid off entirely, with a rate that low it seems sensible to keep my savings invested and just pay that mortgage down on the original payment schedule.

angelescrest
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Re: [Poll] How long did you hold primary residence mortgage?

Post by angelescrest » Wed Mar 18, 2015 8:55 am

The results don't have much bearing if you get to choose how long it TOOK you to pay off the mortgage or how long you PLAN to pay it off in the next few years.

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