Just wondering when you think you would be debt free from paying off your home mortgage.Personally I have another 15 years to go.
When Do You Anticipate You Would Have Paid Your Home Mortgage off Completely?
grabngo on 31/10/2017 - 11:43
Comments
The Op does have a family & the kids are in private school.
Personally I have another 15 years to go.
But he seems to be making stuff up again, as he has already told us that the house is paid off here.
nice work!
we did a few months ago, but big reno means we will probably have another 2 years to get back to zero
When I die I guess
That will be handed over to your kids or partner. So not getting away with the loan until pay off.
Wouldn't the bank just lodge a claim against the estate? Not that I need to worry about that for years but just out of interest…
You could die literally any second?
When my parents die
Even if you can pay it off, better to keep it open so you have an easy way to get a quick loan if needed (ie pay a lot more than minimum payments and withdraw when you need a lump sum of cash for something) instead of having to apply for a personal loan.
Yeah is having easy access to credit really a great thing though? When mine is done I'll close it otherwise the temptation to 'dip' is too easy. Put it this way once its paid off you can build a fund outside of the mortgage account easily.
It isn't access to credit, it's your own money that's just keeping your home loan interest down. It is cheaper interest than paying off your mortgage with every cent you have and then having to take out a personal loan when disaster strikes (simply having to pay your mortgage rate). If course if you have so much money you can pay off your loan early and still have big cash reserves for emergencies that's better.
Five years give or take a year. It depends on our expenses or emergency spending.
don't pay it off, keep it open or refinance it to get another property when you have enough. They pay off is much better.
1st - Paid off, bought $75,000
2nd - Paid off, bought $149,000
Current - 7 years to go, built $379,000Brisbane.
20 yrs ago ?
1988
30 years
When I first got a mortgage, it seemed really daunting to spend decades paying it off.
But many years later, I've paid off several. It may have been a stupid thing to do since I would have more money now if I didn't pay any of it off and brought shares with the money instead.
is it really that easy with shares ?
not getting burnt before ?
It's fine if you buy indexed ETFs or a variety of shares, 15+ different ones in different industries. Some will fall and some will go up, but after many years, the total value should go up.
I had a bad experience was during the GFC, when I had a margin call. A margin call forces you to sell shares, usually when their value is at their lowest. It's better to use a mortgage than a margin loan which has a much higher interest rate.
Me? probably when I retire.
Have paid one off. The current one will be years away.
The issue is, when you pay one off or before I pay it off, I'd probably sell and buy a more expensive house and take on more debt!
I have an investment property, positively geared but I still pay the minimum. Better use to surplus to pay for the non-deductible loan.
Any time I want. Account is in excess, just have the loan open for a rainy day, only paying off the capital - no interest. Well, a couple of months ago it was around $3 interest. Considering using the equity for an investment though.
Wait till early next year to see how the market reacts. I've been looking for a while and Sydney is definitely slowing (on a micro level from what I have seen anyway).
Bought - Jan 2012
Estimated final repayment - Nov 2018**Based on loan calcs spreadsheet and standard monthly savings figure.
Did a 15 year loan earlier this year But managed to get get it paid down enough so that we will be finished within 4-5 years instead. So expect it to be paid off by Jan 2022
No I will always be in debt. When it's paid off, I buy another one. It's a continuous cycle till the day I die or perhaps when I decided to pay more tax.
Sorry to barge in with my slightly off topic question but my husband is very much of the thinking of "lets get our house paid off ASAP". He has come up with a theory (because he says his friend at work has done this) that as we have 2 investment properties, we should be borrowing the equity in those 2 houses and pay it off our house. He believes that having the loans on the investment properties higher than our own loan is better financially and tax wise, where as I keep trying to say, it makes no difference. There is no benefit tax wise to do this as we are not going to be able to claim anymore from the investment properties.
Am I correct in my thinking ?You are allowed to write off any investment property expenses (including interest on loans). So in that respect, your husband is correct. However, if you've got an interest-only investor loan on your investor properties, then the interest rate is likely higher than on your owner-occupied home. So you'll be both gaining (via additional tax write-offs) and losing (via higher interest), you'll need to make calculations on which scenario would benefit you more.
An additional thing to consider is that when you sell an investment property you pay tax on your profits (sell value minus loan value minus selling expenses). So in that regard it is better to have a higher loan value on the investment.Am I correct in my thinking ?
Yes you are correct.
The interest on further borrowing on the investment properties is not deductible as the use is of a personal nature, not an expense relating to income IE Rent.
2005 I hope.
hmmm? coming on 2018!
Must be in the DeLorean
Oh, I reckon by the time I'm 120 yrs old :O
Then I can start enjoying myself.Why would anyone ever want to borrow money from a bank? A bank that's primary purpose is to take money from the customer to distribute to shareholders.
I don't have a mortgage. I save for what I want.
do you have your own family yet ? giggles