Milestone and gotta tell someone

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
NorCalHiker
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Milestone and gotta tell someone

Post by NorCalHiker » Thu Feb 02, 2017 2:13 am

Hello,

Ok, the milestone isn't quite here yet, but it will be by the end of the month .... our house will be paid off! Woo-hoo! We feel so blessed to be able to do this. I'm guessing it's a bit anticlimatic when we finally pay it off, but to watch the mortgage balance become a 4 digit number was awesome! Wanted to do it by age 40 but we are a couple of years late due to a home remodel.

We'll tell our parents and a couple of close friends, but other than that, you guys are it!

KeepItSimple78
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Re: Milestone and gotta tell someone

Post by KeepItSimple78 » Thu Feb 02, 2017 2:37 am

50> and a paid off house is doing well in my book. Early 40s? Great job. :sharebeer
Avid reader of personal finance/investing literature; however, no formal training in this area. My comments are always well-intended, and most often well-informed.

VAslim16
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Re: Milestone and gotta tell someone

Post by VAslim16 » Thu Feb 02, 2017 2:52 am

Yep awesome job guys. Well done.

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cinghiale
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Re: Milestone and gotta tell someone

Post by cinghiale » Thu Feb 02, 2017 4:17 am

Your subject line says it all.

It's nice to reach these kinds of milestones. There's a lot of peace of mind that comes with a mortgage-free life.

And it's nice to share good news with others, and let them be part of your happiness and sense of accomplishment. Unfortunately, news like this told to family members, friends, or co-workers too often occasions the "must be nice" throwaway line or twinges of envy. Better to share it here within the forum and receive some well-deserved accolades.

Congrats!
"We don't see things as they are; we see them as we are." Anais Nin | | "Sometimes the first duty of intelligent men is the restatement of the obvious." George Orwell

chw
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Re: Milestone and gotta tell someone

Post by chw » Thu Feb 02, 2017 5:30 am

Awesome. Enjoy a nice weekend next month with the mortgage payment you used to pay, and then discuss how to pay yourself with future investing. Adjust your IPS to take into account the paid off house.

why3not
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Re: Milestone and gotta tell someone

Post by why3not » Thu Feb 02, 2017 6:36 am

Woo hoo!
Congratulations

BryanS5
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Re: Milestone and gotta tell someone

Post by BryanS5 » Thu Feb 02, 2017 7:18 am

Great job! New to the site, and these types of posts are what will keep me on track.

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bottlecap
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Re: Milestone and gotta tell someone

Post by bottlecap » Thu Feb 02, 2017 7:28 am

Impressive for a CA resident.

Congrats!

walkindude
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Re: Milestone and gotta tell someone

Post by walkindude » Thu Feb 02, 2017 7:32 am

Awesome! Great at your age. I'm late 50s and looking to knock out our mid 5 figures mortgage in the spring - after taxes are all sorted out.

jf89
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Re: Milestone and gotta tell someone

Post by jf89 » Thu Feb 02, 2017 7:54 am

I'm curious... I had always heard of note burning parties growing up but have yet to actually hear of a real one. Is this still a thing? Was it ever a thing? I can understand why you wouldn't want to have a huge blowout, but maybe just an excuse to get some close friends and family over for a few drinks?
"Save as much as you can, diversify diversify diversify, and you can't go wrong with tech stocks" | -First investing advice I recall from my parents in the 90's (two outta three ain't bad)

SimonJester
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Re: Milestone and gotta tell someone

Post by SimonJester » Thu Feb 02, 2017 10:52 am

NorCalHiker wrote:Hello,
We'll tell our parents and a couple of close friends, but other than that, you guys are it!
Congratulations! Be cautious on telling others, even family members you would be surprised what it bring out in people...
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety." - Benjamin Franklin

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JupiterJones
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Re: Milestone and gotta tell someone

Post by JupiterJones » Thu Feb 02, 2017 10:54 am

Congrats! :sharebeer

And yeah, I think mortgage-burning parties did used to be a thing, but it was back when mortgages were widely considered to be something most people would strive to pay off, rather than keep around (and continually re-finance) practically your whole life.

There's even a traditional Irish reel called "The Mortgage Burn": https://thesession.org/tunes/2047

According to Wikipedia: "...throwing a party to celebrate is now generally considered gauche since the traditional paying off of a mortgage is no longer a standard rite of passage. It is now seen as bragging about one’s secure financial condition."

Kinda sad, really. :(
Stay on target...

monsterid
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Re: Milestone and gotta tell someone

Post by monsterid » Thu Feb 02, 2017 10:56 am

Congratulations

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bligh
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Re: Milestone and gotta tell someone

Post by bligh » Thu Feb 02, 2017 11:01 am

Good for you NorCalHiker! That is such an amazing milestone and I am super happy for you. Now that the house payment + principal payments are no longer necessary you are going to see such a huge surge in liquid savings each month. :D

NotWhoYouThink
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Re: Milestone and gotta tell someone

Post by NotWhoYouThink » Thu Feb 02, 2017 11:17 am

Kinda sad, really. :(
Please tell me you meant that to sound like Kieth Morrison!

I remember when my parents paid off their house. They poured champagne for everyone before dinner (definitely not their typical behavior) to make the announcement, which is when they found out I had an announcement of my own. No champagne, thanks, you have a grandchild on the way. Guess I stole their thunder.

LeeInTN
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Re: Milestone and gotta tell someone

Post by LeeInTN » Thu Feb 02, 2017 11:33 am

Congratulations! Major congrats to do this in NorCal. We finished ours at 43 (told no one) and enjoyed several years in accumulation mode.

We're 2,000 miles away but hike in NorCal as often as possible.

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Soul.in.Progress
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Re: Milestone and gotta tell someone

Post by Soul.in.Progress » Thu Feb 02, 2017 11:45 am

Wonderful, OP!! Congrats to you both, as it takes two to do this. I've seen a lot of families where one spouse is on board with a solid financial plan while the other has habits that ruins the chances of success.

I also agree with the cautions that people have stated, like the one below. Be careful who you tell. People may use the info against you, believe it or not.
SimonJester wrote:
NorCalHiker wrote:Hello,
We'll tell our parents and a couple of close friends, but other than that, you guys are it!
Congratulations! Be cautious on telling others, even family members you would be surprised what it bring out in people...
Start by doing what is necessary; | then do what is possible; | and suddenly you are doing the impossible. | -- Francis of Assisi

mortfree
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Re: Milestone and gotta tell someone

Post by mortfree » Thu Feb 02, 2017 11:54 am

congrats...

don't rush to tell anyone - let it set in.

I'm coming up on 1 year since payoff - I had just turned 39 when I made the final payment. Didn't let anyone know b/c it isn't "normal"; esp at my age.


enjoy.

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BrandonBogle
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Re: Milestone and gotta tell someone

Post by BrandonBogle » Thu Feb 02, 2017 12:01 pm

Soul.in.Progress wrote:Wonderful, OP!! Congrats to you both, as it takes two to do this. I've seen a lot of families where one spouse is on board with a solid financial plan while the other has habits that ruins the chances of success.
How do you know me and my household?! Lol :wink:

Nate79
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Re: Milestone and gotta tell someone

Post by Nate79 » Thu Feb 02, 2017 12:33 pm

Congrats! Now imagine all the years going forward for which you will have very low housing cost - rent free, mortgage free.

pamplemousse
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Re: Milestone and gotta tell someone

Post by pamplemousse » Thu Feb 02, 2017 12:58 pm

CONGRATULATIONS!

Carson
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Re: Milestone and gotta tell someone

Post by Carson » Thu Feb 02, 2017 1:31 pm

Congratulations! Enjoy the milestone and revel in it. I suggest buying a new lockset for your main door to remind you that it's all yours now :)
30-something personal finance enthusiast, just get getting started on this whole portfolio thing.

czr
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Re: Milestone and gotta tell someone

Post by czr » Thu Feb 02, 2017 1:46 pm

Nice work! I hope to attain the same goal in the future. I'd be worried to tell people because this society is so brainwashed that debt is good and people should focus money on investments not just consumerism. It's hard to find likeminded people but this forum is chock full of them.

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dwickenh
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Re: Milestone and gotta tell someone

Post by dwickenh » Thu Feb 02, 2017 1:49 pm

Congrats, I remember that feeling and it will pay you mental dividends every day.

Best to you,

Dan
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett

grettman
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Re: Milestone and gotta tell someone

Post by grettman » Thu Feb 02, 2017 1:51 pm

I have about 280 thousand left to go but I hope to join you in about six years. Good job!

If I were you, I would make sure I don't ever go into debt again.

Others feel differently but I sure do like the feeling of no debt.

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midvilterry
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Re: Milestone and gotta tell someone

Post by midvilterry » Thu Feb 02, 2017 1:52 pm

Congratulations!!!!!!!!!!!!You will definitely sleep better knowing you have a roof over your head that is completely paid off.
“The most beautiful things in the world cannot be seen or touched, they are felt with the heart.” | ― Antoine de Saint-Exupéry, The Little Prince

Grt2bOutdoors
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Re: Milestone and gotta tell someone

Post by Grt2bOutdoors » Thu Feb 02, 2017 2:02 pm

Congrats! :sharebeer I hope to join the crowd soon.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

Carefreeap
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Re: Milestone and gotta tell someone

Post by Carefreeap » Thu Feb 02, 2017 2:25 pm

SimonJester wrote:
NorCalHiker wrote:Hello,
We'll tell our parents and a couple of close friends, but other than that, you guys are it!
Congratulations! Be cautious on telling others, even family members you would be surprised what it bring out in people...
Like a demand for loan? That would be from my family. :annoyed

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dratkinson
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Re: Milestone and gotta tell someone

Post by dratkinson » Thu Feb 02, 2017 2:28 pm

Congratulations. Do you have any special plan for the freed up mortgage payment? Or just more for retirement investing?
d.r.a, not dr.a. | I'm a novice investor, you are forewarned.

stoptothink
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Re: Milestone and gotta tell someone

Post by stoptothink » Thu Feb 02, 2017 2:33 pm

We're hoping to do it in 5yrs, when I'll be 40 and wife will be 35. Slightly behind pace, but our childcare bill (which is currently much larger than our 15yr mortgage payment) will be cut in half in 6-months, then totally eliminated in 3yrs, so we feel like it is absolutely doable.

Jack FFR1846
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Re: Milestone and gotta tell someone

Post by Jack FFR1846 » Thu Feb 02, 2017 2:34 pm

Great Job!

Don't feel like you should tell anyone. We paid ours off about 15 years ago and nobody knows (well, we know....and the bank knows). We still have friends who graduated college at the same time we did, had higher household income than us and have 3 mortgages on their house. I expect they've got $17 in equity in it. We just keep it to ourselves and go our merry way. Heck.....a couple months ago, my 81 year old mom asked me "Have you been saving anything for retirement?" worrying, since she knows what college costs. I just said "yah". Nothing about a paid house and 2 commas in investments.
Bogle: Smart Beta is stupid

Carefreeap
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Re: Milestone and gotta tell someone

Post by Carefreeap » Thu Feb 02, 2017 2:39 pm

bottlecap wrote:Impressive for a CA resident.

Congrats!
There's a few of us. :wink:

I'm not sure that it was best financial decision we've made to pay off cheap, long term money at the bottom of the market (2010) but it gives my husband peace of mind. Most people we know can't believe that we live a very comfortable retirement life on $70k/yr in VHCOLA SF Bay Area.

Yiewsley
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Re: Milestone and gotta tell someone

Post by Yiewsley » Thu Feb 02, 2017 2:46 pm

Congrats! :sharebeer

Tom1320
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Re: Milestone and gotta tell someone

Post by Tom1320 » Thu Feb 02, 2017 3:13 pm

Good for you and yours. It is a great feeling. Beers to you :sharebeer.
"And this, too, shall pass away." How much it expresses! How chastening in the hour of pride! How consoling in the depths of affliction! - Our 16th President

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thecarrotfund
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Re: Milestone and gotta tell someone

Post by thecarrotfund » Thu Feb 02, 2017 3:26 pm

Congratulations!!
"not all storms are in the forecast"

Liveware Problem
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Re: Milestone and gotta tell someone

Post by Liveware Problem » Thu Feb 02, 2017 3:34 pm

Congratulations ! :sharebeer It's a major milestone for most of us!

Your money accumulation velocity shall most certainly increase. And here's to that: :sharebeer

Personally I would only tell my parents. The only other people I've told are close friends that ask directly. Good luck going forward.
equiv-tech

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Watty
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Re: Milestone and gotta tell someone

Post by Watty » Thu Feb 02, 2017 3:40 pm

Congratulations!

A couple of things to put on your "to-do" list once it is paid off.

1) Check with your home insurance company to have the mortgage company taken off the home insurance policy.

2) If you have had property taxes and home insurance paid through an escrow account then be sure that you are getting the bills and they are being paid on time.

3) A few months after all the paperwork goes through check with your county, or whoever tracks property liens, to make sure that the lien was actually taken off the property. It is very rare but once in a great while there will be a glitch and the lien removal will not be recorded that will be much easier to fix now than 20 years from now when you are trying to sell the house. There was post a while back by someone that was settling their parents estate and selling the house and there was an old mortgage lien that on the property for a loan that was paid off many decades before. The bank that was involved had gone through multiple mergers and no one at any bank could be found to even talk to about it. As I recall it took a lawyer and several months to get that straightened out.

4) Check to see if you need to change your payroll withholding if you have been itemizing the the mortgage interest.

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FelixTheCat
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Re: Milestone and gotta tell someone

Post by FelixTheCat » Thu Feb 02, 2017 3:43 pm

NorCalHiker wrote:We'll tell our parents and a couple of close friends, but other than that, you guys are it!
I suggest you tell nobody.

I mentioned I paid my house off to a friend and it was a mistake on my part. For several years, the friend mentioned quite often how I should buy things he wants (boat, trailer, etc.).
Felix is a wonderful, wonderful cat.

rg422
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Re: Milestone and gotta tell someone

Post by rg422 » Thu Feb 02, 2017 3:53 pm

Quite an accomplishment at your age. :sharebeer

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dumbbunny
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Re: Milestone and gotta tell someone

Post by dumbbunny » Thu Feb 02, 2017 3:53 pm

Oh, what a relief it is!
Congratulations.
Now you can invest that monthly payment elsewhere.
“It’s the curse of old men to realize that in the end we control nothing." "Homeland" episode, "Gerontion"

SGM
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Re: Milestone and gotta tell someone

Post by SGM » Thu Feb 02, 2017 4:05 pm

I visited my old coach 30 years ago. He said people once had a party when the mortgage was paid off, but they stopped partying because they still had to pay high property taxes. He lived in a relatively high cost of living area.

Congrats on paying off your mortgage.

mortalsonofmortal
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Re: Milestone and gotta tell someone

Post by mortalsonofmortal » Thu Feb 02, 2017 4:08 pm

Awesome!!!! Great Job. I have 18 more years on my mortgage, but hope to get there in 10.

NYGiantsFan
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Re: Milestone and gotta tell someone

Post by NYGiantsFan » Thu Feb 02, 2017 4:45 pm

Congratulations.
Paid off house may be a lawsuit magnate. Put maximum line of credit on it.

Easy Rhino
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Re: Milestone and gotta tell someone

Post by Easy Rhino » Thu Feb 02, 2017 6:25 pm

wow we only bought our first house when I was 38.

Congratulations!

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Crimsontide
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Re: Milestone and gotta tell someone

Post by Crimsontide » Thu Feb 02, 2017 6:30 pm

Excellent. Congratulations, it's a wonderful feeling :beer

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Clever_Username
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Re: Milestone and gotta tell someone

Post by Clever_Username » Thu Feb 02, 2017 6:53 pm

Congratulations on your accomplishment!
"What was true then is true now. Have a plan. Stick to it." -- XXXX, _Layer Cake_

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Nestegg_User
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Re: Milestone and gotta tell someone

Post by Nestegg_User » Thu Feb 02, 2017 9:02 pm

Watty wrote:Congratulations!

A couple of things to put on your "to-do" list once it is paid off.

1) Check with your home insurance company to have the mortgage company taken off the home insurance policy.

2) If you have had property taxes and home insurance paid through an escrow account then be sure that you are getting the bills and they are being paid on time.

3) A few months after all the paperwork goes through check with your county, or whoever tracks property liens, to make sure that the lien was actually taken off the property. It is very rare but once in a great while there will be a glitch and the lien removal will not be recorded that will be much easier to fix now than 20 years from now when you are trying to sell the house. There was post a while back by someone that was settling their parents estate and selling the house and there was an old mortgage lien that on the property for a loan that was paid off many decades before. The bank that was involved had gone through multiple mergers and no one at any bank could be found to even talk to about it. As I recall it took a lawyer and several months to get that straightened out.

4) Check to see if you need to change your payroll withholding if you have been itemizing the the mortgage interest.

5) A few months after mortgage company has completed paperwork showing paid off mortgage-- go to county records office and get Certified copy of lein release

Keep this with your property title


Oh, and welcome to the club-- and hopefully to the two-comma (investible assets) club soon if you aren't already
We'll teach you the secret handshake later--
(BTW: the other hand covers your wallet so you keep it)

NorCalHiker
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Re: Milestone and gotta tell someone

Post by NorCalHiker » Fri Feb 03, 2017 12:56 am

Wow, thanks for all the kind and encouraging words everyone! It feels really great. I remember getting the mortgage under 6 figures after 13 years of payments and then we took out over a 100K for an addition and it was a bummer when the balance was went up to just below 200K. Then came the PenFed 5-year 1.99% HEL and our payments were the highest we've ever had. I remember when went below 100K balance (again) and also when the daily interest on the loan went below $10/day! Telling DW that she spent more for lunch then the cost of loan felt good. :twisted:

Yes, it can be done, even in CA, without options, but with a decent household income. Buying a house right before I was 25 was a big help in paying off the house in our early 40s.

We don't have any special plans for the money, just to restart our monthly taxable investments which we stopped right after opening the HEL. DW works parttime and the kids are in elementary school and preschool, but I'd love to start transitioning to part-time work so that we can travel more. Even with a decent portfolio, I still can't convince myself to work parttime, but not having a mortgage will definitely help!

The $28 lien release payment we'll be making might be the best use of $28 ever! Appreciate all the tips for what to do after paying it off, thanks!

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FIREchief
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Re: Milestone and gotta tell someone

Post by FIREchief » Fri Feb 03, 2017 2:01 am

FelixTheCat wrote:
NorCalHiker wrote:We'll tell our parents and a couple of close friends, but other than that, you guys are it!
I suggest you tell nobody.

I mentioned I paid my house off to a friend and it was a mistake on my part. For several years, the friend mentioned quite often how I should buy things he wants (boat, trailer, etc.).
+1 Why on earth would you tell anyone?? My preference is that everybody I know thinks I'm severely overextended and on the verge of bankruptcy.
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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White Coat Investor
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Re: Milestone and gotta tell someone

Post by White Coat Investor » Fri Feb 03, 2017 2:12 am

NorCalHiker wrote:Hello,

Ok, the milestone isn't quite here yet, but it will be by the end of the month .... our house will be paid off! Woo-hoo! We feel so blessed to be able to do this. I'm guessing it's a bit anticlimatic when we finally pay it off, but to watch the mortgage balance become a 4 digit number was awesome! Wanted to do it by age 40 but we are a couple of years late due to a home remodel.

We'll tell our parents and a couple of close friends, but other than that, you guys are it!
Good job! My brother in law (late 30s) told me today he paid off his mortgage already. I was impressed and kind of embarrassed not to have done so already.
1) Invest you must 2) Time is your friend 3) Impulse is your enemy | 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course

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