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Thread: I want to pay off my house in 5 years

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    God/dess shasta's Avatar
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    Default I want to pay off my house in 5 years

    Today I decided I want to pay my house off in 5 years. This seems like 5 years beyond my reach. I get depressed that people are buying great houses on my street for so much less than i paid. I think to myself if I can get out of paying all that interest than the price will even out in my mind. Does that make sense?

    I save money whenever I can. I put money in my ROTH and my SEP. I still want to keep doing that. I also train for big races and that is what keeps me happy. So, even tho I work a lot, I feel somewhat limited.

    This coming summer I want to get pregnant. All of this and I still want to pay off my house. I think I am dreaming.

    The other factor is that most of the time I do not live in my house. I rent out the master bedroom and I live in Scottsdale with my bf. I do come back to Tucson when he is out of town sometimes. It is very likely that we will relocate to the East coat for his job. I just hate paying this mortgage for a place I don't live in. Luckily the bf takes care of the rent in Scottsdale and any house payment we will have when we move.

    This house has been such a drain on me. BIG stuff is always going wrong. I could put 20k into it right now and I would still need to do more. ugh!

    Most likely I will still be here on SW in 5 years, so I will update with my progress. This month I plan on adding camming to my work routine. This will hopefully allow me to work when I am sore from racing/training.

    Thanks for listening.

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    Banned ArmySGT.'s Avatar
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    Default Re: I want to pay off my house in 5 years




    Extra payments beyond what is required, pay down principal. Thus making the Interest paid ultimately smaller.

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    Banned Melonie's Avatar
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    Default Re: I want to pay off my house in 5 years

    If the specifics of your mortgage are that badly underwater, two words come to mind ... 'jingle mail'




    (snip)"sometimes the NAR’s chief economist says something so gorgeously and absurdly insane that it would be wrong of the media not to report it. And today is one of those days.

    “Our members believe tinkering with the mortgage interest deduction at the high end will trickle down,” said Lawrence Yun, chief economist of the National Association of Realtors. “People view this as part of the social contract, as something that represents the American dream,” Mr. Yun said. “Therefore any changes are changes to the property rights of homeowners.”

    Yes, he really said that: according to Yun, if we tweak or abolish the mortgage interest tax deduction, we’re directly attacking the property rights of homeowners.

    Frankly, rather than making bonkers and obviously false statements about the mortgage-interest deduction, Yun should be much more worried about the future of jingle mail, or walking away. The same NYT section featuring Yun’s quote has two big articles about people who walked away from underwater mortgages: Carl Richard’s first-person account ( at ), and Tess Vigeland’s reported piece about homeowners who used YouWalkAway.com to do just that ( at ). All of them are much happier and financially healthier as a result of their action — and in fact I can’t think of a single article about someone who walked away from their mortgage and regretted doing so.

    Homeowners and their self-appointed representatives, of course, hate the idea that other homeowners would act in such a way: it hurts their own property values. In fact, they hate the idea right up until the point at which they do it themselves, at which point they wonder why they waited so long to get this burden off their backs.

    Walking away is a peculiarly American phenomenon, linked to the fact that many huge states, including California, have non-recourse mortgages. In Ireland, where many people are much deeper underwater, the default rate on mortgages has stayed surprisingly low, partly for social reasons and partly because all mortgages are recourse.

    But the fact is that walking away makes perfect sense for millions of underwater homeowners, and that the banks are being incredibly short-sighted if they refuse to do principal reductions on the grounds that those homeowners will happily continue to pay their mortgage even when they have no equity in their homes and little prospect of ever regaining any. Because as the stories of walking away percolate in articles like these, the stigma will go away. And Americans will start actually doing, en masse, what has always been in their best interest."(snip)


    The starting point of the article is the apparent fact that the President's deficit committee is going to recommend a reduction in the home mortgage interest tax deduction for the 'rich', which the members of NAR feel will quickly trickle down to a reduction / elimination of the home mortgage interest tax deduction for the 'rich' and 'middle class' alike. If home mortgage interest deductibility does wind up being reduced or eliminated over the course of the next couple of years, not only will this significantly increase the de-facto cost of mortgage payments ( because the offsetting federal and state income tax reductions due to home mortgage interest payments will also be reduced or eliminated ), but it will likely further depress valuations for existing real estate.

    And of course in your particular situation, Arizona is a 'non-recourse' state ... meaning that mortgage creditors cannot attempt to recover 'deficiencies' on a mortgage debt via laying claim to other financial assets you own that are not directly related to home ownership. Thus the 'jingle mail' option would put you behind the credit 8 ball for 5 years or so ... but probably not much different than your current underwater mortgage has. The main difference would be that, for the next 5 years, you wouldn't be making mortgage payments totalling hundreds of thousands of dollars toward outright ownership of a property with unknown future value ( and as the article points out, a future value that may never recover to the original price level you paid for it ). And this would particularly be the case if you never intend to reside in this property as your primary residence !

    !
    Last edited by Melonie; 11-15-2011 at 01:07 AM.

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    God/dess shasta's Avatar
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    Default Re: I want to pay off my house in 5 years

    Army: I play with those calculators all time.

    Melonie: I don't think I am "underwater." I never intended to portray my situation that way. I have a normal loan. I put 20% down and have a 15 year mortgage with a 4.3% interest rate. As far as I can tell, jingle mail just means walking away. I have friends who have done this, but they were in horrible situations. As of today I have 163,000 left to pay down. I live near the University, in an old home in a nice neighborhood. Around here the people who really had to walk away bought WAY out in the super suburbs in new communities. They bought big houses and paid A LOT. Those new communities are ghost towns now.

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    God/dess shasta's Avatar
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    Default Re: I want to pay off my house in 5 years

    Melonie: Also,people who are able to "walk away" are probably in a very different situation than me. I have a lot of other assets in the form of investment accounts.


    My mortgage has only effected my credit in a very positive way. I paid about 221000 for my house. Like I said, I live in an established neighborhood. I will own this house forever most likely. People love it and it is easy to rent.

    This post was more about my goals and maybe advice on achieving them. Not about walking away.
    Last edited by shasta; 11-15-2011 at 03:21 PM.

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    Default Re: I want to pay off my house in 5 years

    AND, if I do this I will end up paying the same amount or less that people who are buying now.

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    Banned Melonie's Avatar
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    Default Re: I want to pay off my house in 5 years

    ^^^ then it sounds like your particular property is a 'keeper' ... which indeed is the exception to the rule where typical Arizona properties are concerned.

    Because Arizona is a non-recourse state, the fact that you have savings and investments wouldn't pertain. Arizona law would forbid a mortgage lender from attempting to get their hands on any asset that wasn't specifically connected to the property.

    Indeed walking away would mean that you would lose the house, as well as the down payment and monthly payments to date. But since the down payment you made was a comparatively large 20%, and since the low purchase price and location of your particular property have allowed it to retain 'value' far better than most other Arizona properties, walking away would not make financial sense in your particular case.

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    Featured Member Vamp's Avatar
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    Default Re: I want to pay off my house in 5 years

    Quote Originally Posted by shasta View Post
    Melonie: Also,people who are able to "walk away" are probably in a very different situation than me. I have a lot of other assets in the form of investment accounts.


    My mortgage has only effected my credit in a very positive way. I paid about 221000 for my house. Like I said, I live in an established neighborhood. I will own this house forever most likely. People love it and it is easy to rent.

    This post was more about my goals and maybe advice on achieving them. Not about walking away.
    I would love to be able to tell you there is a magic bullet. But there isnt.
    Anyone that goes on about a fast way is just trying to sell something too.

    Basic making principal only payments is the best way. It sounds like you have a good mortgage. That is a huge help.

    For motivation I would suggest two things. One stop looking at everyone else. Once your house is paid off it wont matter. The more you compare the more you are going to get disheartened. Why should I do this or that ..... they dont have to mentality. It doesnt matter! The loan is in your name and you have to pay it one way or another. You want to do it sooner then later. So focus on the paying it off sooner.

    Second try to find out if you can hear Dave Ramsey's radio show. It is usually on the AM side. The majority of his listeners are trying to get out debt the old fashioned way. One of the things he advocates is paying off the house. He talks strategies such as paying off debt and once it is paid off ... taking the same amount and putting it on the house. There also success stories every day. Callers calling in that said they did it! Which is nice to hear. I used to listen to it during lunch to keep me motivated.

    Good luck!
    Nature knows no indecencies; man invents them. ~ Mark Twain


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    God/dess shasta's Avatar
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    Default Re: I want to pay off my house in 5 years

    Thank you Vamp. I will listen to that show. I love Suze Orman as well.

    I actually think I might be able to do this!

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