What's it feel like to pay off your mortgage? Me and my wife are 29yo and roughly about 4 - 5 years away from paying off our mortgage. As soon as we have more in our offset account then what we owe I'm transferring it all to never see it again! Our repayments each week is $600 which is more than the min, but I can't help thinking what we would be able to spend the extra money on. It will be over $31,000 a year, I'm guessing a big 3 - 4 week family holiday every year, our oldest will be around 7 - 8 around the time it's payed off so perfect time for her.
I have been in that position a couple of times, it was a bit of a novelty at first but you get used to it. I just took a major construction loan for a renovation on my current PPR, so watching that mortgage go fro zero to now increase with each progressive progress payment.
What's it feel like to pay off your mortgage? Me and my wife are 29yo and roughly about 4 - 5 years away from paying off our mortgage. As soon as we have more in our offset account then what we owe I'm transferring it all to never see it again! Our repayments each week is $600 which is more than the min, but I can't help thinking what we would be able to spend the extra money on. It will be over $31,000 a year, I'm guessing a big 3 - 4 week family holiday every year, our oldest will be around 7 - 8 around the time it's payed off so perfect time for her.
How did your life change after?
Have been paying 3.5k a month for a while on my Sydney IP,was all paid out last wednesday , so its better to have the money in my pocket than paying off the bank.What makes me laugh are all the clowns paying interest only loans, and not actually paying off the loan. If you don't get price rises and rents rises, it does not work,period. You just keep paying all that interest to the bank year after year and nothing goes in your pocket.Looked at a cheap property a few weeks ago, but someone got in before me. Was a nice little passive income earner,dirt cheap. Would of put fifty in, and paid it down in 18 months to 2 years with my other ip and a bit extra tossed in.
Well done Gunner, I'm in the same boat, my partner and I have paid off nearly all out mortgage in just over 8 years, it should be done and dusted in another 6 months. It was tough at first but after a few years it gets really easy, you just make the extra payments and hammer away at it. It feels so good to be mortgage and rent free for the rest of our lives, and yes now the question is what to do with all that spare income! We'll probably invest it somewhere, either an investment property or shares or something like that.
Buying a home can seem an intimidating experience yet it is most rewarding. If it feels intimidating it is because you will be "weighed down" with a mortgage debt that can seem at times never-ending. Yet it is very rewarding because, in the end, not only will you have a "castle" to call your own, you will also have a solid financial springboard to catapult your wealth to new heights.
While outright home ownership is what we all ought to be striving for, in my view, many Australians struggle to pay off their mortgage debt. This doesn’t have to be the case. For someone who has recently entered into a 25 or 30 year mortgage, the borrower can excise as much as 10 years off the life of the loan by being disciplined and chipping away at the loan repayments in the early years.
Here are five methods I propose that, when taken together, can assist one to pay off their mortgage in record time:
1. Have a loan that suits
There are many home loan options available, and not all of them will necessarily work in one's favour. As a rule of thumb, identify a mortgage loan that carries a competitive interest rate, flexible repayment options and minimal fees and penalties. Furthermore, pay close attention to the loans "comparison rate" rather than the "advertised rate".
2. Switch to fortnightly repayments
Switching your monthly repayments to fortnightly repayments equates to making 13 months of repayments a year (rather than twelve). Over a 30-year period, paying fortnightly calculates to paying off your mortgage roughly two and half years earlier.
3. Pay more, pay often
The primary method to paying off your mortgage sooner is to pay more. Consider utilising any windfall, such as your tax return, to reduce your mortgage. Simple logic tells us that the more money you put into your mortgage, the faster your loan will be paid off.
4. Take advantage of an offset account
Most variable interest rate loans have the ability to set up an offset account and they are an optimal way to reduce the amount of interest you will pay through your savings.
5. Refinance
Sometimes saving thousands of dollars can be as simple as asking your lender for a lower rate or switching from a variable loan to a fixed rate loan. By switching to a lower rate, one could save on one's repayments thus helping you pay off your loan sooner.
Most Australians that I speak to dream of owning their home outright and through discipline and following the methods set out above, one can go a long way to achieving this dream.
What's it feel like to pay off your mortgage? Me and my wife are 29yo and roughly about 4 - 5 years away from paying off our mortgage. As soon as we have more in our offset account then what we owe I'm transferring it all to never see it again! Our repayments each week is $600 which is more than the min, but I can't help thinking what we would be able to spend the extra money on. It will be over $31,000 a year, I'm guessing a big 3 - 4 week family holiday every year, our oldest will be around 7 - 8 around the time it's payed off so perfect time for her.
How did your life change after?
Maybe you could spend some time and money educating yourself, so you don't come across as such a boorish unlikable fool?
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Maybe you could spend some time and money educating yourself, so you don't come across as such a boorish unlikable fool?
I used to enjoy reading your contributions to the forum, John, but lately you've come across a little condescending, a touch arrogant. You must understand that capitalism does not reward intellectuals. It rewards the risk-taker. It's all very well for you to sit back and think you're smarter, or better educated, than those around you but those attributes don't mean anything when it comes to making money. Your problem is that you're afraid of risk. Until that changes, you and capitalism aren't a good match and those "less educated" than you will continue to outperform you.
I used to enjoy reading your contributions to the forum, John, but lately you've come across a little condescending, a touch arrogant. You must understand that capitalism does not reward intellectuals. It rewards the risk-taker. It's all very well for you to sit back and think you're smarter, or better educated, than those around you but those attributes don't mean anything when it comes to making money. Your problem is that you're afraid of risk. Until that changes, you and capitalism aren't a good match and those "less educated" than you will continue to outperform you.
Yep, it's the erosion of the middle classes that makes me the most bitter about things doc.
And I'm not sitting on my laurels expecting things to be handed to me on a plate - I have switched over my career to take on work that is duller and less 'productive', but far better paying than any of the useful work that I once did, out of necessity. Somehow because it's involved with creating loans and mortgages it's deemed to be worth more money. And I blame that squarely on people's priorities in this country being completely fucked up. The obsession with property is beyond anything I've seen in my decade working around Europe.
And people with attitudes like this OP (who I suspect is another one of these annoying bull trolls that are infesting the site at the moment) are just the pawns in this stupid game and fodder for me to vent. I don't intend to pay them any lip service at all.
Dr Watson
28 Oct 2014, 08:24 AM
You must understand that capitalism does not reward intellectuals. It rewards the risk-taker.
The intellectual understands that sometimes capitalism should reward the risk-taker.
He understands that the very idea of risk entails a chance that things can go wrong, and when they do the risk-taker should come off worse.
The intellectual saw six years ago a crisis where the risk taker should have been punished, but was instead bailed out due to "systemic risk".
And now he has watched for the last 6 years the global economy sputter among, being fed the same fuel that caused it to blow up so spectacularly last time, in the hope that it will reach some escape veliocity and fly on its own. And not only that, this time capitalists expect to do it without the help of an army of the middle class people who work hard and pay a shitload of tax in return for having a reasonably priced abode to hang their coat at night.
So the intellectual knows the best place to be right now is near the halls of where real power lies, so he can hope to exert some influence in the future to stop this country falling back into the middle-income trap, banana republic, laughing stock of the world.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy