Mortgage is About To Be Paid - I'm Scared!

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
heybro
Posts: 139
Joined: Thu May 12, 2016 9:17 pm

Mortgage is About To Be Paid - I'm Scared!

Post by heybro » Mon Dec 04, 2017 4:44 pm

When I started, I put everything to my student loans. The day they left me, I was thrilled.
Then I went after the mortgage. It will be paid in about one year.

At that moment, I will not have any debt and I will most likely never have any debt again.

This is going to be a huge point of change.

I am pretty much going to maintain my same modest lifestyle and direct most of my paycheck to retirement accounts.

But dude, I am SCARED! HAHA. It worries me to own this! It will be mine and I feel like I'll change from worried I won't have anything to worried what I do have will be taken away.

Any advice on how your mind changes once you have no debt?
Any advice on how to be OK holding large sums of accounts?
I am used to being 'under' something that I'm trying to get paid off.
I am not used to having something and being on top of it.

Thank you.

User avatar
onthecusp
Posts: 387
Joined: Mon Aug 29, 2016 3:25 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by onthecusp » Mon Dec 04, 2017 5:10 pm

Do you have 25-30 times your remaining expenses in those retirement / financial independence accounts?

If not you have not won yet! :twisted:

There, I bet you feel better already. :D

snowox
Posts: 170
Joined: Wed Nov 08, 2017 9:17 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by snowox » Mon Dec 04, 2017 5:23 pm

Dont worry...you will have plenty of things to worry about. Thats life!

KlangFool
Posts: 8720
Joined: Sat Oct 11, 2008 12:35 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by KlangFool » Mon Dec 04, 2017 5:23 pm

onthecusp wrote:
Mon Dec 04, 2017 5:10 pm
Do you have 25-30 times your remaining expenses in those retirement / financial independence accounts?

If not you have not won yet! :twisted:

There, I bet you feel better already. :D
+1.

KlangFool

Hug401k
Posts: 253
Joined: Fri Mar 28, 2014 7:49 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Hug401k » Mon Dec 04, 2017 5:25 pm

I think you'll get used to it. And you didn't marry the house, you can always sell it! Congrats!

Jack FFR1846
Posts: 6816
Joined: Tue Dec 31, 2013 7:05 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Jack FFR1846 » Mon Dec 04, 2017 5:38 pm

heybro wrote:
Mon Dec 04, 2017 4:44 pm

Any advice on how your mind changes once you have no debt?
Any advice on how to be OK holding large sums of accounts?
I am used to being 'under' something that I'm trying to get paid off.
I am not used to having something and being on top of it.

Thank you.
Send your kids to private college and pay for it. That's what I do. It allows me to say to people who complain about kid's day care....."mouse nuts". It allows me to say to most people with mortgages...."mouse nuts".
Bogle: Smart Beta is stupid

hawkfan55
Posts: 251
Joined: Thu Apr 03, 2014 9:04 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by hawkfan55 » Mon Dec 04, 2017 5:45 pm

Heybro, sounds like you're goal oriented and making progress. Lots of things to save and spend money on. Are you married? Have a family? Do you contribute the maximum allowed dollars to retirement accounts? You'll want to keep your home investment in good shape so it keeps it's value. Your home may or may not meet future needs so don't count on staying forever. Congrats and good luck!
Forum Library of Investing Advice: https://www.bogleheads.org/wiki/Main_Page

User avatar
oldcomputerguy
Posts: 2807
Joined: Sun Nov 22, 2015 6:50 am
Location: In the middle of five acres of woods

Re: Mortgage is About To Be Paid - I'm Scared!

Post by oldcomputerguy » Mon Dec 04, 2017 5:50 pm

Don’t be scared. You already have quite a bit of equity in the home, which means you own most of it now. This will only mean you own the last little bit.

We paid off our mortgage a couple of years ago. Felt great. No worries, no regrets, NO DEBT.
It’s taken me a lot of years, but I’ve come around to this: If you’re dumb, surround yourself with smart people. And if you’re smart, surround yourself with smart people who disagree with you.

adamthesmythe
Posts: 1941
Joined: Mon Sep 22, 2014 4:47 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by adamthesmythe » Mon Dec 04, 2017 6:20 pm

Time for an umbrella policy, if you don't have one yet.

Think about other potential liabilities now that you have assets to lose- health insurance, paternity, potential divorce, etc.

User avatar
Earl Lemongrab
Posts: 4352
Joined: Tue Jun 10, 2014 1:14 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Earl Lemongrab » Mon Dec 04, 2017 6:22 pm

No difference to me. For years I had no mortgage because I rented. Then I had a mortgage. Then I didn't. Then I took a home-equity loan. Just recently that ran its course and now I don't have one again.

Some people seem to have a lot of emotion wrapped up in their house and its loan or lack thereof.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

TravelforFun
Posts: 1223
Joined: Tue Dec 04, 2012 11:05 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by TravelforFun » Mon Dec 04, 2017 6:46 pm

Nothing to be scared about. After you pay off your home, focus on saving and investing, and enjoy being weird (you have no debt).

TravelforFun

User avatar
cfs
Posts: 4015
Joined: Fri Feb 23, 2007 1:22 am
Location: ~ Mi Propio Camino ~

Re: Mortgage is About To Be Paid - I'm Scared!

Post by cfs » Mon Dec 04, 2017 6:57 pm

heybro wrote:
Mon Dec 04, 2017 4:44 pm
. . . Then I went after the mortgage. It will be paid in about one year . . .
ALL ENGINES STOP.

Do NOT change a thing. One year from now the check you are currently sending to the mortgage company should be sent to Vanguard for deposit to your IRA, and when the IRA is full then deposit ALL to your taxable account. And just watch those retirement accounts grow, grow, grow, and grow. Life is goooooood.

Wishing YOU and YOUR family a Merry Christmas, and thanks for reading.
~ Member of the Active Retired Force, portfolio withdrawal and spending rate 1.7% ~

tigermilk
Posts: 504
Joined: Thu Aug 15, 2013 9:32 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by tigermilk » Mon Dec 04, 2017 7:14 pm

When I got debt free it was merely a sense of freedom. The realization that barring not paying my property taxes, no one would pry my house away from me. Cash flow is great, and tings like appliances going belly up are inconveniences rather than a financial crisis. You should expect to enjoy, not fear, it.

heybro
Posts: 139
Joined: Thu May 12, 2016 9:17 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by heybro » Mon Dec 04, 2017 8:04 pm

This is exactly right. This situation is extremely foreign to me. Growing up, we got by. My debt has always been an enemy that I have always had. I just want to be sure I'm not caught off guard because I EXPECT something! I am not used to not having to worry about it. I've lived my whole life viewing debt as an enemy -- and I've always had this enemy with me.

Grt2bOutdoors
Posts: 18162
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Grt2bOutdoors » Mon Dec 04, 2017 8:08 pm

When you pay off your mortgage, redirect the old payment amount to a taxable account that is equity heavy. Then, you can worry about the value declining every day because .... fill in the blank. Worries never really go away, they just change from one thing to the next.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

bhsince87
Posts: 1578
Joined: Thu Oct 03, 2013 1:08 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by bhsince87 » Mon Dec 04, 2017 8:27 pm

Well, if you feel like you miss that fear of losing your home, just realize that you still could lose it. If you don't pay your property taxes, it could still be taken from you.

But seriously, I paid ours off 3-4 years ago. I was sort of afraid right before I did it. More of a feeling like, "What if this doesn't work." But it did.

Now that "payment" goes directly to Vanguard each month.
BH87

User avatar
Earl Lemongrab
Posts: 4352
Joined: Tue Jun 10, 2014 1:14 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Earl Lemongrab » Mon Dec 04, 2017 8:39 pm

As they say about many things, debt is a good servant but a poor master. You have to know how to use it successfully.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

ThePrince
Posts: 261
Joined: Sun Aug 20, 2017 9:15 pm
Location: U.S.A.

Re: Mortgage is About To Be Paid - I'm Scared!

Post by ThePrince » Mon Dec 04, 2017 10:38 pm

Earl Lemongrab wrote:
Mon Dec 04, 2017 8:39 pm
As they say about many things, debt is a good servant but a poor master. You have to know how to use it successfully.
It is also said the borrower is slave to the lender, which is absolutely true.

KlangFool
Posts: 8720
Joined: Sat Oct 11, 2008 12:35 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by KlangFool » Mon Dec 04, 2017 10:47 pm

ThePrince wrote:
Mon Dec 04, 2017 10:38 pm
Earl Lemongrab wrote:
Mon Dec 04, 2017 8:39 pm
As they say about many things, debt is a good servant but a poor master. You have to know how to use it successfully.
It is also said the borrower is slave to the lender, which is absolutely true.
ThePrince,

I disagreed. I never take on a debt that I could not pay off if I want to. This includes the mortgage.

KlangFool

KlangFool
Posts: 8720
Joined: Sat Oct 11, 2008 12:35 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by KlangFool » Mon Dec 04, 2017 10:50 pm

heybro wrote:
Mon Dec 04, 2017 4:44 pm
When I started, I put everything to my student loans. The day they left me, I was thrilled.
Then I went after the mortgage. It will be paid in about one year.

At that moment, I will not have any debt and I will most likely never have any debt again.
heybro,

Congratulation! It is an achievement.

KlangFool

User avatar
celia
Posts: 7709
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Mortgage is About To Be Paid - I'm Scared!

Post by celia » Mon Dec 04, 2017 10:52 pm

heybro wrote:
Mon Dec 04, 2017 4:44 pm
When I started, I put everything to my student loans. The day they left me, I was thrilled.
Then I went after the mortgage. It will be paid in about one year.
It sounds like you tend to go from one extreme to another.

How about taking the middle road and get used to the idea of a mortgage-free house instead of racing towards it so fast. By that, I mean, don't pay off the remaining mortgage early. Just make the minimum payments. So... it takes 3 years or so. So what?

Meanwhile, use that excess money you are putting towards it to go to retirement savings. This way you won't come up to meet one goal. Slam the door on it. Then open another door for retirement. You can do both of them, each at a slower pace for the remaining term of the loan and not be jolted by such a sudden change.

It's sort of like you're putting all your eggs in one basket. You can have more than one financial goal at a time. There is nothing wrong with that.

Lyonsguy
Posts: 17
Joined: Fri Apr 14, 2017 9:08 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Lyonsguy » Mon Dec 04, 2017 11:32 pm

I’m not sure if this is a humblebrag, but I’ve posted here about almost paying off my mortgage and not knowing what to do next.

This was actually a statement of fear. In some ways this is like leaving the harbor and sailing Out to sea. There are so many options with investing and there are so many choices. When paying off mortgage there is one dragon to slay and you know without a doubt what to do with extra monthly funds. You know what the game plan is and you stick to it. Investing can be so much more daunting.

The more I read bogleheads the more I realize that it there are fewer options than I considered. Buy a new index funds (even as simple as listed on the wiki board), and don’t try to time the market.

So I can understand the fear of paying off mortgage. It puts one in new I chartered territory, which is liberating but also a bit scary.

joeblow
Posts: 104
Joined: Sat Nov 28, 2015 12:17 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by joeblow » Mon Dec 04, 2017 11:40 pm

Jack FFR1846 wrote:
Mon Dec 04, 2017 5:38 pm


Send your kids to private college and pay for it. That's what I do. It allows me to say to people who complain about kid's day care....."mouse nuts". It allows me to say to most people with mortgages...."mouse nuts".
I'm totally stealing "mouse nuts."

OP as others have said, now you have to save. Maybe think about it like you've paid off your current debt, but you now have to "pay off" your future debt?

lostdog
Posts: 892
Joined: Thu Feb 04, 2016 2:15 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by lostdog » Mon Dec 04, 2017 11:57 pm

After your house is paid off your next goal is FI. Once you reach FI and then some, give your bad boss and slaveployer the middle finger and enjoy the rest of your life.
100% Vanguard Total World Index. Simplicity 100%.

KeepItSimple78
Posts: 81
Joined: Fri Apr 15, 2016 6:03 pm
Location: Louisiana

Re: Mortgage is About To Be Paid - I'm Scared!

Post by KeepItSimple78 » Tue Dec 05, 2017 12:04 am

Nice job OP. Don't be scared... you've had a plan in place to get yourself out of debt and you're crossing the finish line. Treat yourself to something and enjoy the moment. You're in a great financial place.
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.

Nate79
Posts: 2332
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Nate79 » Tue Dec 05, 2017 1:13 am

Congrats. A paid off home is one of the key pillars to a successful retirement.

panhead
Posts: 261
Joined: Fri Feb 22, 2013 10:53 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by panhead » Tue Dec 05, 2017 7:44 am

heybro wrote:
Mon Dec 04, 2017 4:44 pm
When I started, I put everything to my student loans. The day they left me, I was thrilled.
Then I went after the mortgage. It will be paid in about one year.

At that moment, I will not have any debt and I will most likely never have any debt again.

This is going to be a huge point of change.

I am pretty much going to maintain my same modest lifestyle and direct most of my paycheck to retirement accounts.

But dude, I am SCARED! HAHA. It worries me to own this! It will be mine and I feel like I'll change from worried I won't have anything to worried what I do have will be taken away.

Any advice on how your mind changes once you have no debt?
Any advice on how to be OK holding large sums of accounts?
I am used to being 'under' something that I'm trying to get paid off.
I am not used to having something and being on top of it.

Thank you.
Well, if you're married, you only own half the house and it can still be taken away from you, so you definitely still have something to worry about in that case!

GoldenFinch
Posts: 1524
Joined: Mon Nov 10, 2014 11:34 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by GoldenFinch » Tue Dec 05, 2017 7:51 am

Sometimes when people realize they don’t have any problems they get nervous because they not know what to worry about anymore. :happy Just enjoy your new freedom and don’t create any new debts.

And congratulations on paying off your mortgage! :sharebeer

User avatar
teen persuasion
Posts: 507
Joined: Sun Oct 25, 2015 1:43 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by teen persuasion » Tue Dec 05, 2017 8:52 am

OP, you sound like you are viewing your debts as holes to be filled. Student loan hole, filled. Check. Mortgage hole, nearly filled. Now what? You could look at retirement savings as another hole that needs to be filled, a "debt" to yourself, your future self. If you need multiple goals, view it as successive levels of retirement savings: bare bones level, comfortable level, generous level, etc. The only difference here is that you set the "debt" level you need to fill.

You could also begin to shift your mindset. Look at your paid off debts as accomplishments, not holes you've filled. You achieved your education goal (both the academics side and the financial side). You will fully own your house. Next goal to achieve - financial independence. As another poster mentioned, goals can run concurrently; you can be paying off your mortgage while saving for retirement. In fact, all of these are just various parts of Financial Independence. Begin to view your accomplishments as steps to Financial Independence, and maybe you won't feel scared, but empowered.

Personally, when we paid off the mortgage we split our next steps based on our different goals. I wanted to ramp up retirement savings, and we did, but DH wanted to work less, so I worked the budget to make sure we could manage both. More disposable income gives you choices - what is most important to you? When you had debts, you had obligations you HAD to pay. Now you get to choose how to allocate your money. If that's still scary, remember owning that home will still have some obligations: maintenance. Budget for a sinking fund to pay for irregular big expenses, like a new roof or furnace.

raamakoti
Posts: 107
Joined: Mon Jul 31, 2017 10:20 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by raamakoti » Tue Dec 05, 2017 9:10 am

heybro wrote:
Mon Dec 04, 2017 4:44 pm
Any advice on how your mind changes once you have no debt?
Any advice on how to be OK holding large sums of accounts?
I am used to being 'under' something that I'm trying to get paid off.
I am not used to having something and being on top of it.

Thank you.
First realize the simple truth of your brain - it can not think anything on its own without your consent. Another limitation of brain is at any given time i can not think of more than one thing. Thank Lord for this. read good books.
Stop associating these thoughts that you own something. You will open the door the same way you did, garage door will work the same way, every object is going to be in the same place, people will be sleeping where they slept
Unless you deliberately create a different movie in your head with some scary aspects in it, fundamentally nothing should change. Did your driving habits change when you paid of your car?
all the four above statement in your message - don't assign any value to it and you will be fine.
Congratulations - I am looking forward to get to the similar day in my life.

User avatar
djpeteski
Posts: 513
Joined: Fri Mar 31, 2017 9:07 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by djpeteski » Tue Dec 05, 2017 9:18 am

heybro wrote:
Mon Dec 04, 2017 4:44 pm

Any advice on how your mind changes once you have no debt?
Any advice on how to be OK holding large sums of accounts?
I am used to being 'under' something that I'm trying to get paid off.
I am not used to having something and being on top of it.

Thank you.
It will take some getting used to, for us about 9 months. It is like being a superhero without a villain.

Spend some money, and time, in becoming healthy. Eat better, exercise and consider hiring a personal trainer. My latest purchase is a Garmin fitness watch, which really helps IMO.

It becomes a time to dream, and possibly making your dreams a reality.

Develop a plan to use your new found disposable income, as always follow the advice to give some, spend some, and invest(save) some.

KlangFool
Posts: 8720
Joined: Sat Oct 11, 2008 12:35 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by KlangFool » Tue Dec 05, 2017 9:25 am

OP,

1) I do not look at filling the holes (debts). I am looking at my portfolio as creating the source of money.

2) I evaluating my portfolio as a ratio of my current annual expense. It tells me how long I can survive if I am unemployed. It lets me "Sleep Well At Night" (SWAN). I need that because I have no job security over the last 10+ years. My portfolio let me SWAN.

3) So, instead of filling a hole, you are filling a water tank now.

KlangFool

p0nyboy
Posts: 102
Joined: Wed Aug 30, 2017 1:37 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by p0nyboy » Tue Dec 05, 2017 9:36 am

People forget...you never actually own your home...and yes...you will always have some sort of debt/payment to be made on a house...its called property tax. Dont believe me...just stop paying it and see how many years you get to keep your house. One of the greatest scams in the history of mankind.

Also...how much was your mortgage? Ours is approx $600/month without property insurance. When its paid off...$600/month or $7200/year isnt going to change much. Just another nice vacation or two. Its not that much money in the grand scheme of things.

fipt2030
Posts: 69
Joined: Tue Oct 03, 2017 8:09 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by fipt2030 » Tue Dec 05, 2017 9:46 am

Grt2bOutdoors wrote:
Mon Dec 04, 2017 8:08 pm
When you pay off your mortgage, redirect the old payment amount to a taxable account that is equity heavy. Then, you can worry about the value declining every day because .... fill in the blank. Worries never really go away, they just change from one thing to the next.
Amen to that

chevca
Posts: 1464
Joined: Wed Jul 26, 2017 11:22 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by chevca » Tue Dec 05, 2017 9:59 am

p0nyboy wrote:
Tue Dec 05, 2017 9:36 am
People forget...you never actually own your home...and yes...you will always have some sort of debt/payment to be made on a house...its called property tax. Dont believe me...just stop paying it and see how many years you get to keep your house. One of the greatest scams in the history of mankind.
Do you not like having roads going to/from your house, police and fire services, and nice schools and parks in your neighborhood? Those aren't free. You pay for those even when you do fully own your home. True, the county will get upset if you don't pay them and may take your house. But, you're not being scammed you're paying for services.

Yes, you can actually own your home. True, you will always have bills. Two different things though.

WalterMitty
Posts: 121
Joined: Fri Sep 05, 2014 8:49 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by WalterMitty » Tue Dec 05, 2017 12:23 pm

heybro:

Congrats!

Mine is a two parter...

1) When I paid off the mortgage and got to debt free, it was a great feeling. It was a goal that took a fair bit of time and some sacrifice. Not a major sacrifice, but it took some amount of self restraint. I would get a nice bonus, and usually put 1/2 or more to debt...sometimes it was close to 100% to debt. So the nice bonus would come and go...ho hum, no big deal. I could have run out and spent it on something fun, but I didn't. So it felt good to finally achieve the goal. The secret then is to make sure you funnel that cashflow (or at least most of it) to savings source, versus having "life" just absorb the amount and then you will wonder where it went. That said, treat yourself to something.

2) After awhile...maybe a year or two, I did kind of fall into a "now what" mode. There was no dragon to slay. I'm in my late 40's and in the beginning life is pretty well scripted (or can be for some)...school....work...marry...mba...kids...climb career ladder....then the "now what" sort of hit me. I've sort of maxed out with my career (but I'm very happy with it), and since I've been saving for so long, even though I have more to do, it's mostly on autopilot...meaning, I know what to do with extra cash and bonuses...finalizing college savings for kids (2 down 1 to finalize), and keep the funneling funds into retirement savings. The bottom line for me, is that I need a hobby. The kiddies are getting grown, and travel sports are almost done. I have more free time at night and on weekends, and I find myself restless. For 2018 my goal is to get into something that pushes my buttons. While I don't condone it, I can see why people have mid-life crisis. It's a big "now what" for people. Lucky for me, I love my wife, so that front is not something I want to run from. But I do need a more fun in my life...a hobby or a passion that keeps me motivated.

Best of luck with your journey.

staythecourse
Posts: 5637
Joined: Mon Jan 03, 2011 9:40 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by staythecourse » Tue Dec 05, 2017 1:50 pm

denovo wrote:
Mon Dec 04, 2017 4:49 pm
Is this a humblebrag?
If it is a humblebrag I wouldn't have if I was in the same situation. In the long run how much money could have been made if one would have just carried the low cost debt (mortgage) and invested in the markets instead.

I made that same decision years back and am glad I invested instead. Paying off a low debt instead of investing into high expected returns give folks better satisfaction emotionally, but less net worth overall. The problem is now there is less human capital and time for the OP to see the effects of compounding. Best financial decision I made was to hit 7 digits as quickly as possible and let compounding do the rest. Has worked great so far.

Good luck.
"The stock market [fluctuation], therefore, is noise. A giant distraction from the business of investing.” | -Jack Bogle

Grt2bOutdoors
Posts: 18162
Joined: Thu Apr 05, 2007 8:20 pm
Location: New York

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Grt2bOutdoors » Tue Dec 05, 2017 2:11 pm

p0nyboy wrote:
Tue Dec 05, 2017 9:36 am
People forget...you never actually own your home...and yes...you will always have some sort of debt/payment to be made on a house...its called property tax. Dont believe me...just stop paying it and see how many years you get to keep your house. One of the greatest scams in the history of mankind.

Also...how much was your mortgage? Ours is approx $600/month without property insurance. When its paid off...$600/month or $7200/year isnt going to change much. Just another nice vacation or two. Its not that much money in the grand scheme of things.
Alternatively, don't own a house, instead pay rent. Rent a place, but the first month you don't pay the rent, the landlord will take you to court. See who lasts longer in the home, homeowner who is in arrears on the taxes or the renter who fails to pay the rent.

What you fail to realize in your analysis above is $7,200 invested at some % rate will translate into a much larger sum of monies over time (Just ask our friend IRA what $5,500 can do!). Your analysis of "just another vacation or two" is a behavioral mistake committed by many who fail to plan for tomorrow, instead they "live for today, because you can't take it with you" :oops: It can be as little money, even zero or quite a large sum depending on the actions you take today.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

GoldenFinch
Posts: 1524
Joined: Mon Nov 10, 2014 11:34 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by GoldenFinch » Tue Dec 05, 2017 2:34 pm

p0nyboy wrote:
Tue Dec 05, 2017 9:36 am
People forget...you never actually own your home...and yes...you will always have some sort of debt/payment to be made on a house...its called property tax. Dont believe me...just stop paying it and see how many years you get to keep your house. One of the greatest scams in the history of mankind.

Also...how much was your mortgage? Ours is approx $600/month without property insurance. When its paid off...$600/month or $7200/year isnt going to change much. Just another nice vacation or two. Its not that much money in the grand scheme of things.
But for some people it is a lot of money. Our mortgage payment was 1,937 a month, almost 24k a year, so it made a big difference in our savings ability when we paid it off.

User avatar
LadyGeek
Site Admin
Posts: 45017
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: Mortgage is About To Be Paid - I'm Scared!

Post by LadyGeek » Tue Dec 05, 2017 4:50 pm

I removed an off-topic post and several replies. As a reminder, see: General Etiquette
We expect this forum to be a place where people can feel comfortable asking questions and where debates and discussions are conducted in civil tones.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

heybro
Posts: 139
Joined: Thu May 12, 2016 9:17 pm

Re: Mortgage is About To Be Paid - I'm Scared!

Post by heybro » Tue Dec 05, 2017 4:59 pm

Lyonsguy wrote:
Mon Dec 04, 2017 11:32 pm
I’m not sure if this is a humblebrag, but I’ve posted here about almost paying off my mortgage and not knowing what to do next.

This was actually a statement of fear. In some ways this is like leaving the harbor and sailing Out to sea. There are so many options with investing and there are so many choices. When paying off mortgage there is one dragon to slay and you know without a doubt what to do with extra monthly funds. You know what the game plan is and you stick to it. Investing can be so much more daunting.

The more I read bogleheads the more I realize that it there are fewer options than I considered. Buy a new index funds (even as simple as listed on the wiki board), and don’t try to time the market.

So I can understand the fear of paying off mortgage. It puts one in new I chartered territory, which is liberating but also a bit scary.
THIS is exactly what I wanted to say!

User avatar
White Coat Investor
Posts: 13290
Joined: Fri Mar 02, 2007 9:11 pm
Location: Greatest Snow On Earth

Re: Mortgage is About To Be Paid - I'm Scared!

Post by White Coat Investor » Tue Dec 05, 2017 5:11 pm

heybro wrote:
Mon Dec 04, 2017 4:44 pm
When I started, I put everything to my student loans. The day they left me, I was thrilled.
Then I went after the mortgage. It will be paid in about one year.

At that moment, I will not have any debt and I will most likely never have any debt again.

This is going to be a huge point of change.

I am pretty much going to maintain my same modest lifestyle and direct most of my paycheck to retirement accounts.

But dude, I am SCARED! HAHA. It worries me to own this! It will be mine and I feel like I'll change from worried I won't have anything to worried what I do have will be taken away.

Any advice on how your mind changes once you have no debt?
Any advice on how to be OK holding large sums of accounts?
I am used to being 'under' something that I'm trying to get paid off.
I am not used to having something and being on top of it.

Thank you.
It made a very minor difference in my financial life to pay off my mortgage. I wouldn't describe it as a huge point of change. It just seemed like the time was right to pay the rest off because I knew I'd regret carrying it any longer if something happened to my income or assets.
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

User avatar
Earl Lemongrab
Posts: 4352
Joined: Tue Jun 10, 2014 1:14 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by Earl Lemongrab » Tue Dec 05, 2017 6:15 pm

ThePrince wrote:
Mon Dec 04, 2017 10:38 pm
Earl Lemongrab wrote:
Mon Dec 04, 2017 8:39 pm
As they say about many things, debt is a good servant but a poor master. You have to know how to use it successfully.
It is also said the borrower is slave to the lender, which is absolutely true.
Not in the slightest. No more than I'm a slave to anyone else I do business with.
This week's fortune cookie: "Your financial life will be secure and beneficial." So I got that going for me, which is nice.

mouses
Posts: 3125
Joined: Sat Oct 24, 2015 12:24 am

Re: Mortgage is About To Be Paid - I'm Scared!

Post by mouses » Tue Dec 05, 2017 11:11 pm

Unless you have leventy million dollars and perfect health, there will always be things that can happen to cause misery.

Post Reply