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How many years to be mortgage free?

  • Under 5 years

    Votes: 8 18.6%
  • 5 - 10 years

    Votes: 13 30.2%
  • 11 - 15 years

    Votes: 9 20.9%
  • 16 - 20 years

    Votes: 4 9.3%
  • 21 - 25 years

    Votes: 4 9.3%
  • Over 25 years

    Votes: 5 11.6%

  • Total voters
    43
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Discussion Starter #1

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Within 10 years, no question. Ideally within 6 years or so - it all depends on how much we toss toward the principal as prepayments.

Total time with a mortgage: between 11 and 14 years... not bad at all. :D
 

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I've recently read a story about a couple who paid off their principal mortgage in 3 years.

"How we paid off our house in three years"
http://www.canadianbusiness.com/my_money/investing/article.jsp?content=20060704_150040_5240&page=1

I know this story is rather extreme, but what is your personal goal for paying down the mortgage? (aside from HELOC)
If already completed, how many years did it take you?
We hope to have our mortgage paid off in 2 years, which will make it 3 years in total. :)
 

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I've recently read a story about a couple who paid off their principal mortgage in 3 years.

"How we paid off our house in three years"
http://www.canadianbusiness.com/my_money/investing/article.jsp?content=20060704_150040_5240&page=1

I know this story is rather extreme, but what is your personal goal for paying down the mortgage? (aside from HELOC)
If already completed, how many years did it take you?
We did it. Mortgage on our first house paid off in 22 months ($100,000). Then moved to a new house with a $59,000 mortgage, paid off in 16 months. At 31, we're mortgage free and the house is worth about $320K. It's fantastic. I love hearing my friends talk about how much of their income is going towards their mortgages that will be paid off in X years. The sacrifices and hard work were well worth it! Now I can borrow a bit from home equity at preferred rates to invest in high yielding equities.
 

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Discussion Starter #8
We hope to have our mortgage paid off in 2 years, which will make it 3 years in total. :)
We did it. Mortgage on our first house paid off in 22 months ($100,000).....
Wow, very impressive FT and DrStan. :eek: You guys should in MoneySense article also.



If already completed, how many years did it take you?
DAvid & Rickson9, you can still vote. :)
If never had mortgage, then that's a different story.
 

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Hmm, looks like I'm taking the longest?

After we get to a lower rate next week, we should have our principle residence paid off in 11 more years, so 13 in total.

But we've already upgraded - our first condo would have been paid off in 5 - only because it was a closed mortgage with only 20% prepayment available. We were really conservative with our first place and could have paid it out upfront (before the boom ;)).
 

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Length of time left to pay off our mortgage is highly dependent on several things for us (and for all of you as well, I expect). At current payment rate, 15 years - we are prioritizing cash savings at the moment, until early fall. Then, we will go back to a payment rate yielding less than 10 years. With the amount of prepayments we make, it could actually be 5 years before discharged, under current conditions. However, one never knows how the years will go. Having children would certainly mess with any projections I happened to make today. And while I quite enjoy the house I'm in, who knows what 5-10 years might do to my tastes and desired lifestyle? A bigger house would mean jumping back on the mortgage treadmill.

So, there's my complicated response to a simple question!
 

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Wow, very impressive FT and DrStan. :eek: You guys should in MoneySense article also.


The math was pretty compelling and the timing was fabulous because I received a huge contract to be done as a sideline over a 2-year period. This required about 50 hours a week, not including my regular work, but was sufficient to pay off the mortgage. Well worth it, and a good argument for secondary sources of income!
 

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Right now we looking at 18 years, however assuming we can make a few planned for changes in the next couple of years, we're looking at under 12 years, but we're hoping to do it in under 7.
 

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There should also be an option for "Never".

We have a tenant in our basement, and my husband uses a big part of the main floor as his office. The tax benefits we get from writing off the interest payments on a large part of our mortgage make it more beneficial for us to continue paying a mortgage for this house and invest the tax savings, than to pay it off.

We also have a 40-year mortgage. We will have moved into another house LONG before it's ever paid off.
 

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There should also be an option for "Never".

We have a tenant in our basement, and my husband uses a big part of the main floor as his office. The tax benefits we get from writing off the interest payments on a large part of our mortgage make it more beneficial for us to continue paying a mortgage for this house and invest the tax savings, than to pay it off.

We also have a 40-year mortgage. We will have moved into another house LONG before it's ever paid off.
I've never quite understood this argument. Even if your mortgage is 100% deductible (which it isn't - only a portion can be deducted if it's for business use), the math still doesn't add up.

If you have a $200,000 mortgage at a 5% interest rate, you're paying approximately $10,000 in interest each year. At a 40% tax rate, a $10,000 deduction will net you a $4000 tax refund, assuming the entire mortgage is tax-deductible. More than likely, less than 40% of the home is being used for business purposes, meaning that the deduction would be more like $4000 for a $1600 refund.

In essence, you're paying the bank $10,000 so that the government will refund you about $1600 of your taxes. Why do you think this is a good idea?
 

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We have exactly 35 years left on our mortgage (lol, yes, we have a 5% down 40 year mortgage). I'm hoping to pay it off in 10, though- we're with ING, and can make prepayments every month if we so choose. We've already managed to shave more than 3 years off the amortization through payments, and I'm currently a student and DH has only been working 2 years. I think we're doing okay so far!
 
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