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3morereps
Illinois Fan
The Gym
Member since Jun 2015
5040 posts

How much equity do you have in your home and When do you plan on paying off
Purchased home for $385,000 in early 2016. Value is probably $400,000, and I owe approximately $282,000 giving me equity of $118,000. I am currently putting an extra $500/month on the mortgage to lower my effective interest rate to low 3s and pay it off in 15 years.

I know I could hurdle that interest rate in the market, but I am consistently putting a lot more dollars to work there (SEP, HSA, non-qualified for retirement and 529 for kiddos school.) plus, I enjoy looking forward to having a paid off home without a monthly mortgage payment.

What are y’all doing in terms of paying off your home? Paying minimum and investing difference? Everything at mortgage?
This post was edited on 5/15 at 7:19 am


dlmast87
Ohio State Fan
Amish Country
Member since Dec 2007
1746 posts

re: How much equity do you have in your home and When do you plan on paying off
Built home in 2017. Appraised at $400k and currently owe $259k. We're throwing an extra 1500 to 1600 a month on the mortgage. I know numbers wise it doesn't make sense but my wife and I hate debt and a paid off home provides peace of mind and freedom.


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kaaj24
LSU Fan
Dallazz
Member since Jan 2010
399 posts

re: How much equity do you have in your home and When do you plan on paying off
My interest rate is 3.5% so I don't do any extra principal.

If paying down your mortgage makes you happy then do it. Less risk, paying less interest, guaranteed "return" on the additional principal payment. That is never a terrible financial decision.

If you're paying PMI then it may make even more sense to get your LTV lower.


MrJimBeam
New Orleans Saints Fan
Member since Apr 2009
2329 posts

re: How much equity do you have in your home and When do you plan on paying off
I'm still in the first year of my home. We weren't able to put down much but now that we don't have wedding expenses we are going to start putting down a lot more. Have about 40k in equity, but came in 10k under appraisal so that was nice. Worth about 340, just under 300k in mortgage. 4.75% plus PMI Hope to have PMI gone in a couple years.
This post was edited on 5/15 at 7:24 am


3morereps
Illinois Fan
The Gym
Member since Jun 2015
5040 posts

re: How much equity do you have in your home and When do you plan on paying off
With PMI, will you have to refinance when your LTV reaches certain threshold, or can the bank just remove the pmi from existing mortgage?


hungryone
LSU Fan
river parishes
Member since Sep 2010
8657 posts

re: How much equity do you have in your home and When do you plan on paying off
That’s me....3.5 and 18 years left on the note. Presently not throwing extra money on it, as I’ve got about $120k equity in a house worth $365kish. Won’t be moving until I downsize into a retirement/old age condo. My extra cash is working hard elsewhere, and mortgage is our only debt.


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MrJimBeam
New Orleans Saints Fan
Member since Apr 2009
2329 posts

re: How much equity do you have in your home and When do you plan on paying off
They can remove it once we get to 20 percent. Traditional loan.


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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
2045 posts

re: How much equity do you have in your home and When do you plan on paying off
I just closed on my “forever home” back in December. Have about $200k in equity. Not putting anything significant into mortgage. About to refinance it (already lol) due to rates dropping around 1%.

quote:

Have about 40k in equity, but came in 10k under appraisal so that was nice. Worth about 340, just under 300k in mortgage. 4.75% plus PMI


Any chance it could appraise higher?

Rates are around low 4s now and could get rid of PMI if appraised higher. Or prepay it. Might be worth looking into.


MrJimBeam
New Orleans Saints Fan
Member since Apr 2009
2329 posts

re: How much equity do you have in your home and When do you plan on paying off
quote:

Rates are around low 4s now and could get rid of PMI if appraised higher. Or prepay it. Might be worth looking into.



It's possible, but it was last August so I'm not really sure it's appreciation since then. I'll certainly look into it


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TheWiz
LSU Fan
Third World, LA
Member since Aug 2007
9924 posts

re: How much equity do you have in your home and When do you plan on paying off
quote:

What are y’all doing in terms of paying off your home? Paying minimum and investing difference? Everything at mortgage?


quote:

Paying minimum and investing difference?

This isn't our forever home. We will probably only stay there until 2023/2024.
We max out my 401k, her 403b, backdoor our Roth IRAs, contribute to her pension, put $3,500/month aside for a big balloon payment to student loans in 2020, pay $2,510/month to student loans (on track to kill by 01/2022), and $3,000/month to a nanny.

I'm ready for these fuggin student loans to be gone so we can max out her 457b too!

So yeah, I'm gonna let my reasonably low mortgage ride.
This post was edited on 5/15 at 8:38 am


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Member since 2001
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KG6
LSU Fan
Member since Aug 2009
10913 posts

re: How much equity do you have in your home and When do you plan on paying off
I feel like giving an idea of your age would help. We are in the process of moving. No rush for us as we are just trying to get in a really good school district and have until the end of next summer. I'm 33 and although we have the funds to jump into a house, we will be starting with only 20% down again. And with my career, I'll be moving again eventually. Trying to figure out when is a good point to start actually paying down more than 20% on houses and eventually have a house paid for.




TheWiz
LSU Fan
Third World, LA
Member since Aug 2007
9924 posts

re: How much equity do you have in your home and When do you plan on paying off
quote:

And with my career, I'll be moving again eventually

Any idea how soon?

quote:

Trying to figure out when is a good point to start actually paying down more than 20% on houses and eventually have a house paid for.


I think that any time you can put enough down to secure a 15yr. mortgage and feel comfortable with the note, then that is a good starting point.


TigerDeBaiter
LSU Fan
Member since Dec 2010
7586 posts

re: How much equity do you have in your home and When do you plan on paying off
Probably $80-90k. I have no intention to pay off the mortgage early, which is at 3.75%

This is only our second home and we will use proceeds on the next house. I’d rather save extra cash elsewhere personally.

To me, it only makes sense to aggressively pay off a house in the later years in life. If you’re younger there are more aggressive ways to grow your money.


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BACONisMEATcandy
LSU Fan
Member since Dec 2007
45997 posts

re: How much equity do you have in your home and When do you plan on paying off
Bought in 2017 for 850 owe 725ish Redfin and Zillow say worth 1.09 right now but I think its a bit inflated. 4.5 rate.

I will sell long before it's paid off


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NCTigerFan
LSU Fan
North Carolina
Member since Nov 2007
142 posts

re: How much equity do you have in your home and When do you plan on paying off
We built our home in 2014. Financed about 30% of the cost to acquire the land and build. We had that on a 15-year note at 3.0%, scheduled to pay off in January 2030. I want it gone by my 50th birthday in 2023, so I calculated the extra principal payments necessary to accomplish that, and that’s what we pay.


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KG6
LSU Fan
Member since Aug 2009
10913 posts

re: How much equity do you have in your home and When do you plan on paying off
quote:

Any idea how soon?


No way to tell. But when I do move, the company pays all realtor fees, closing costs, etc. Actually usually provides a 3% value of your home as a bonus. So from the "cost of moving" perspective, it's not that big of a deal for us.

quote:

15yr. mortgage and feel comfortable with the note,



I'm still looking at 30 year notes. I know we could definitely afford it at 15 year, but I don't know if I could say I'd be comfortable with it. Really not from a place where we couldn't afford it. Just from a perspective of being stuck with a note that high (~2900 a month in my area when including taxes and insurance). We make good money and I just don't see how so many are dropping that kind of coin on houses.


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iluvredboxx
LSU Fan
Lafayette
Member since Mar 2012
568 posts

re: How much equity do you have in your home and When do you plan on paying off
Fortunate here, 100% equity. Last payment in 2017


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lsujro
LSU Fan
BR
Member since Jul 2007
3075 posts

re: How much equity do you have in your home and When do you plan on paying off
Have about $100k equity (largely based on self done improvements). Note is about $130k. Interest is 3.75% with ~25 years left. Not our forever home. In a couple years, I plan to purchase a new home and use this one as a rental. I expect it could gross nearly double the current note (that includes insurance and taxes).

Will max 401k and backdoor roths this year for first time (came very close last year). Excess cash will be saved for next house and other investment opportunities.


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barry
Cincinnati Fan
Location, Location, Location
Member since Aug 2006
46997 posts

re: How much equity do you have in your home and When do you plan on paying off
quote:

How much equity do you have in your home and When do you plan on paying off



about 30-40%. Bought for 275k, was flooded during Harvey and was gutted downstairs. Put in ~100k.

in roughly 28 years or when i sell it and buy another



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cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
16209 posts

re: How much equity do you have in your home and When do you plan on paying off
quote:

What are y’all doing in terms of paying off your home? Paying minimum and investing difference? Everything at mortgage?

i had to wait until tuition obligations were over, and my company was doing well enough to lump-sum me some money

when that happened i immediately paid mine off even though i only had 6 years left at 2.5%. i realize that savvy investors would advise against that, but i wanted that debt gone...and it feels so, so good


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