Smart Reasons to Save, Use and Invest Money

My Mortgage Countdown #2, Then There Was 1…

We just paid the 2nd to the last payment on our mortgage!     

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It’s a odd feeling.  Now that I’m so close I’m actually feeling a bit anxious about what comes next after we do pay off the mortgage.  At this point we’ll be totally debt free.  We don’t have any car loans (I paid off my car loan off last year), nor do we have any credit cards with balances on them.   I’m excited, but intimidated by the fact that I will be starting at ground zero with my next financial path which is financial asset accumulation. 

So what does my house look like?    

Our house is similar to this one.


Well, it’s a colonial style house that is a 4 bedroom house, it measure about 2,100 square feet and is about 10 years old.  We only have about 1/4 of an acre, so our lawn is pretty small.  Luckily we live relatively close to a park (it’s only a few houses down the street).  We have a kitchen, recreation room, media room (computer/library), 4 bedrooms, kitchen, laundry room.  We didn’t finish your basement yet, but if we did, it would add at least another 600+ square feet.    

To me, our house is just a house, but to my kids and wife, it’s the perfect house.  I often through out a “let’s looks for a new house” speel, but both my kids and wife are content where we are.  Financially, it makes sense for us to stay too, but I get antsy sometimes.  

It will have taken us a little over 10 years to pay off our mortgage.  Initially, we started with a 30 year mortgage.  But through extra payment and few refinances (we switched to a 15 year mortgage), we whittled it down.

My next payment will be a little more expensive for me, it will be $1,581.  But then that’s it!

5 Responses to My Mortgage Countdown #2, Then There Was 1…

  1. Congrats!!! What a load off your shoulders that must be 🙂 Our situation is the complete opposite of yours. While we don’t have any debt either, neither do we have a mortage. But we’ll be looking to buy pretty soon. I can only home that once we do, we’ll be able to pay if off soon like you did! 🙂

  2. Great! In my opinion, this is the best time to buy (hopefully)! Especially with the first time buyers tax credit extension!

    So… not only are houses cheap, but Uncle Sam pays you to buy one. How’s that for incentive!

    I recently learned that there is also a tax credit if you are a previous home owner for the last 5 years.

    I’m seriously thinking of buying another home. My wife and kids keep talking me out of it though. 😉

  3. Don,
    You are right. The incentive is $6500 I believe for second time buyers who haven’t bought anything in the last five years. I think it would be a good opportunity to buy an investment property near a university.

    How did you decide that you would be okay not having those tax deductions that comes with having a mortgage payment?

  4. That took a lot of thinking (and number crunching). In the end it was that the itemized deduction amount wasn’t much higher than the standard deduction amount (currently $11,400 for “married filed jointly”). Itemizing wasn’t that much of a bargain when factoring that I saved over $150,000 in interest payments alone.

    In some ways (and in other way not), I got luck that the stock market ended lower in 2008. Otherwise, the stock market would have been a better investment.

    The other reason I decided to go with additional payments on my mortgage, is because I hate personal debt. That said, I’m very open to debt that is related business activites, especially real estate.