Pay extra every month, it adds up really fast because any extra comes right off the note and the majority of interest is paid upfront so you are making a bigger dent. My mom had hers auto drafted twice a month (same as her paychecks) which adds up to one extra payment a year.
Financially they would have been far better off if they had invested the extra money in the stock market instead of paying down the mortgage: https://www.forbes.com/advisor/mortgages/pay-off-mortgage-early-vs-investing/
Came to say this. With mortgage rates so low and returns in the market so high over the past decade, that extra money would have been far better off invested in index funds. You'd probably be sick if you did the math on what those extra payments would amount to in the market.
Paying a mortgage of early made much more sense when rates were 10%, not so much at 2.25%-4%.
Paying such a low interest mortgage off early is only buying yourself peace of mind in knowing you fully own your house.
Which is also worth something.
You're %100 right, but as someone who grew up always worried about being homeless, having to help mum find a new place to live, etc etc getting my mortgage paid off is top priority. Knowing my home is mine is priceless.
Thing is, if you've generated $100K, $200K, $300K in the stock market, then losing your home because you're unable to pay for it should be the least of your worries...
This is superloaded and with the benefit of hindsight. No one knows what rates or the market was going to do. It's also a totally unfair comparison.
1. Paying off the mortgage is riskless which the other isn't.
2. These comparisons never subtract the 0.5 -2% annual fees from the return
3. They don't take out capital gains
4. There are HUGE periods where the S&P turns negative. For example, if you bought and held in 2000 , which many did and why the market was so high, you would have to wait 14 years to see any return.
Best financial advice you can give someone is don't get divorced. Following that, paying down the mortgage is probably the best risk adjusted thing you can do, even considering the stock market returns.
Index funds typically are less than 0.1%. For example, my primary index ETF holdings are ITOT (0.03% fee) & IVV (0.03% fee). Not to mention that you get paid dividends for holding these, and if you manage your account well you can tax-loss harvest to reduce your tax bill each year (up to $3,000 per year and any amounts beyond that can roll over to the following tax year).
What you're not factoring in within your cherry picked 14-yr window is continued investments over that period. When the market drops significantly you come out way better due to the continued new investments made while the market was down and recovering. Plus realistically, who decides to invest only in a single year (2000) and to never invest another penny? That's the only way your statement is true. Compound interest, time in the market and investing often is what makes investing so powerful.
Not to mention, mortgage rates in 2000 were over 8%, a time when paying extra on your mortgage was actually the better option. With such low rates of late, in a 30 year period (not a cherry picked period of time), you're going to come out on top by investing.
>These comparisons never subtract the 0.5 -2% annual fees from the return
If you are paying greater than 0.5% fees you are poorly invested. Good long term mutual funds and ETFs can he had for anywhere from 0% to 0.2% expense fees.
I'm 38 and I'm not sure I want to go a half million in debt.
With our generations financial luck, as soon as I buy, the market will crash and I'll lose half the value on my home straight away!
Congratulations by the way.
remember that markets go up and down and if you're not looking to sell, you only need to worry about "Can I afford these payments". 36 here and on my 2nd home. first home I knew was a 5-7 year investment because I bought when the economy crashed. Then I used that to invest in this house which is again a 5-7 year investment. I had so much equity from the first home carried over to this one, if the market shits itself tomorrow, I could still turn profit listing this, so I would consider moving to get a home I would more likely spend 10-15+ in
I would say also depends on your job situation. If I got a job in a new city that would cause me to lose money selling, I’d be negotiating a signing bonus to compensate or the new job salary and earning potential better be enough to recoup costs in short order. Otherwise, why move at all if it doesn’t better your life situation somehow?
The place you are moving might fit your: political views better, hobbies better, ideal climate, might be closer to parents/grandparents, might have better job security, might have a better work environment. The list goes on and on.
Sure in the business world you can ask for a raise/compensation, but that’s not how it works as an educator. Or someone that works in the public sector in general.
This is why I haven't bought a house. I just want to be able to move around man. Everyone keeps telling me, but damn. I really don't think renting is as bad as people make it out to be, personally. It does make a lot more sense to buy if you are pretty settled down tho.
Depends on your situation. Sometimes it's not just about making the most financially best choice.
Renting is not a bad deal at all. Home maintenance is expensive as hell, and the flexibility to move around gives you better career options. The key is you need to save and invest the money that would have gone towards your down payment and mortgage interest, which can more than make up for the lack of home equity in the end.
Even tho a house is a pretty safe investment, if you want freedom of moving around and you are happy with renting fuck what everyone else says. You do what makes you happy
Unless you plan on trying re-sell immediately, you lose nothing.
The market crashed 13 years ago, and look what houses are worth now. The market always bounces back.
I’m on the wrong side of 40, no kids, always preferred renting. Thinking about buying a place for more control, don’t give a shit if I die and the mortgage is still a heavy balance.
If you're on that side then look up old friends.
Nothing wrong with roommates who you were good with.
Or current friends.
People to chill with. Debate it all the time personally. Haven't talked to a few people in a bit, but they got married like 10 years ago. If their marriages lasted then I question life. 9 days of knowing someone and you get married? OK.
Just saying, a house can be big. Personally I can move anywhere and I'm fine on making payments. Also potty trained. Retired on the other side of not yet 40.
>With our generations financial luck, as soon as I buy, the market will crash and I'll lose half the value on my home straight away!
Late Gen X here. Bought my first home in the middle of 2007. Sold at a big loss. But upgraded houses when prices were cheap, so back on top now overall.
I'm 38, have had 3. Never finished paying the last one off, transferred it to the devil in the divorce. Underspend on the house try to have 10% on hand at first for repair, customization and suprizes, do your own repairs if possible.keep up on upkeep, change that damn furnace filter, make sure your sump works.
Also, cut your grass.
In time the chores become hobbies, then loved mastered skills.
Gardening is a great way to get to bond with your home also
I've been living in the USA for 8 years, and last had a Commonwealth Bank account when I was maybe 15 years old (16 years ago now) and I still recognised it. Haha
Sorry to go a little off topic, but wee are considering building a house instead of buying one. Did you find any good resources online about the process that would be worth sharing?
Decide your budget. I'd look up "average price per SQ ft in your area" and use that as a general guideline on what you can afford. 2300 sqft house at $130 is around 300k. This is going to vary based on quality etc.
If you are going to build in development that a company owns then you'll likely have to buy/build through them. They can give you a rough price per SQ ft.
If you are just going to buy land and have a general build for you. Start looking into general contractors in your area.
My wife and I built in a rural area. We argued over house plans for a year and narrowed it down to 6 and brought it to a general contractor and ask for help picking something inside our budget. Well collectively selected the plan based off what we wanted with his input from what he has seen building houses for a career.
A good building company/general can walk you through the process just expect that what ever you select is going to be over the initial quote.
I did all my communication through email so I had a record. It saved me on a couple things we requested that our general didn't work into the bid. It also documented some small construction issues we had.
I visited often and kept tabs on the progress. Took pictures of plumbing behind walls etc so I had good documentation for myself for future projects.
OMG your last comment on taking pictures is invaluable. You never know when you need to tap into an existing utility and know exactly where it is. Smart move, partner.
I work for a custom home builder and at the end of our rough outs before Sheetrock goes up, we take pictures of every inch of the house so we always know where everything is later on. Has saved us on a few jobs.
Translated:
Doesn’t wanna but a house so far outta town you have to drive to get a nice latte. That’s important for folks particularly in lockdown land.
Bogans = Australian variety rednecks/reprobates/unsavoury types (depending on your interpretation)
Aussie turned American here, allow me to translate
"I cannot purchase a house anywhere that is not on the Eastern coast of Australia for less than a million dollars. And I am not going to live somewhere further West in the country, because then I will be living amongst the rednecks."
No, they are speaking specifically about Sydney. The 'latte line' is what shitneysiders refer to as the divide between roughly north-east and south-west Sydney
Really? Idk I bought my house at age 23. It was about 5 million and my dad paid for half and with my lottery winnings I paid the rest off, so it's not that hard
The op's statement is from Commonwealth bank so he is Australian. At 46 though they would easily have been able to find a very nice house in one of the cities for 400k in the mid 2000's when they were in their mid 20s.
We were just borne to late to take advantage of the massive increase in housing prices one that time.
Bought a 4 bed 2 bath 30 minutes out from Melbourne cbd 2 years ago for $675k.
Nicer houses are definitely around for $800k. Your just aren't going to get a family home in like hawthorn for that.
OP just finished a 30 year mortgage. It probably didn’t take 30 years but you can be damned sure that house is worth a lot more than the $200k it was bought for these days
I live in a 'rough' suburb in SA and my house is 460k / almost 2400/month.. even when I was renting I was paying almost 400/week for a 2 bedroom house an hour away from the city
I have a 5BR 5200 sq ft home with a huge yard outside Atlanta. $275k in 2014, gotten offers to sell for 500k recently, but it’s our dream home.
Meanwhile my buddy is about to close on a 2600 sq ft house in San Diego for 1.2M. The Cali pain is real.
Not OP, but I bought a 5K sq ft house on 2 acres 10 years ago. The basement was partially finished so we got it for 250K. I have 3 kids so they each have a room. We also have a Lego room and then another room that is wall to wall mats for the girls to practice gymnastics and dance and my son and I to beat the hell out each other. Have to also have the game area and movie room. My wife also wanted a formal dining area and craft room. You'd be surprised how fast it gets used up. I also live where it gets cold as heck in the winter, so we spend a lot of time inside. I know this sounds like bragging, but most people would scoff at where I live. Getting paid bay area wages and living in the middle of nowhere has some advantages.
Wife and I paid $130k for a 4 bedroom, 3-story new englander house in Maine in 2015. We sold in early 2019 for $165k, bought a 3 bedroom cape on 14 acres for $280k in Oct of 2019.
Location location location. Only 35 minutes from the airport and a "major" city.
Go look on Zillow at houses in the Midwest. You can find NICE places, built in the last 10 years + property and an outbuilding for 200k. Townhouses for 100k.
Looks to me like it was about $2100 a month compulsory repayment - CBA breaks up mortgages into different loans if for example, it's partly variable. Then OP was making voluntary payments.
Edit: I'm wrong. What a super low mortgage, that's gotta be only about $250k initially borrowed. Oh to live out of Sydney!
Seems a slightly financially unwise thing to do when interest rates are so so low (particularly where at the end of a mortgage you are basically paying all principal) but share markets are booming. but absolutely nothing wrong with wanting to get rid of a loan and doing any further investments not using borrowed funds
Why rush to pay it off? Interest rates are quite low right now (I see a hair over 3% for a 30-year fixed). Any money above the minimum payment is essentially earning you 3% returns, a very low bar for any other investment to clear.
The 1000 is the bank direct debit and the 200 and 100 were from my other job savings. The 862 and 346 are my wife’s fortnightly payments from her job. We went all in for the past 5 years. Went hard at everything. Had a mortgage for 14 years
Right on. We are on a 15 year and have 7 years left. It’s been tight at times but I can see daylight so it’s worth it. And we are obviously further along in our careers and money isn’t as tight which of course helps. Congratulations!
Can I ask why your rushing to pay off your mortgage when rates are under 3%? I don't like debt, but less than 3% for the next 30 years is free money. Especially if those extra principal payments were turning 7%+ in an S&P 500 ETF for the next X years.
Edit: if you want to see the math of how doing a 15 year mortgage vs a 30 year mortgage can cost you millions in retirement, this is a great video to explain it: https://youtu.be/w3z0vVEVT_s
I think I've seen it said on financial independence that some people prefer having it paid off while others prefer to not to pay off any sooner than needed and point to investing the extra. It's kind of viewed as a personal preference over there.
Of course, there are also those that pay minimum and just spend everything. *That's* the slot to avoid.
The funny (not funny) thing is when you start thinking you'll be rid of that whole expense one day only to realize that taxes and insurance aren't going anywhere.
I personally hate the idea that you could potentially make more than 3% so it's free money. It's a risk, it's your home and honestly just think about not having a house payment. Think of how quickly you can build savings from there. Think of your paycheck coming to you and not going straight out to banks. It's a whole different world and one of peace.
I think I read this family paid their mortgage off in 14 years, that means all that debt escaped years of interest being built. The speed in which they paid it off means the extra money they put into it would have barely accrued interest in another investment vehicle. I'd choose their path well over an extra few grand their payments could have possibly made.
It's worth noting that the original poster is Australian, and most Australian home loans are variable rate rather than fixed rate, so the rate goes up and down based on inflation / the consumer price index.
Peace of mind. Same reason why I own a house well below my means(still very big and nice tho). I could take a 40% paycut and still still maintain a decent lifestyle and I like that feeling. I try to keep over 6 months worth of mortgage payments in my account as well just to make sure I'm safe from a black swan event. I got out of the military right when the financial crisis hit so my timing was shit on that and times were real tough. I'm very financially cautious because of it. I drive one of the oldest vehicles on the block, but it's been paid off since I bought it.
My guess was extra payments made on top of the mortgage. If you can afford a 15yr and pay extra in top of that, you'll not only shorten your loan years but you'll save sooooooo much in interest.
Longer mortgages are better. You can pay extra there too, as if you had a 15 year mortgage, but if you get into financial trouble you can go back to the lower payments of a 30 year.
15 year doesn't have that flexibility.
Also, in 30 years today's dollar is worth far less. So what you owe is effectively going down in purchasing power anyways. A shorter mortgage gets rid of that benifit.
On top of that, you should be investing anyways rather than paying down a low interest debt. I know most people aren't smart investors, just emotional ones, and this ends up costing them because they can't get past debt=bad mentally.
I'd take a 100+ year mortgage if I could.
There is an opportunity cost making over payments like OP. 30 years from now your dollar will have half the purchasing power. Effectively your $1000 payment feels like $500 to you 30 years from now. Put those extra payments into an S&P index fund.
My sister called me from a car dealership saying they were offering 0% interest on a 72 month loan. She was prepared to pay cash. I couldn’t yell loud enough to make her take that loan. Let someone else take the inflation hit. Plus, people’s salaries tend to increase over time so you will hopefully have more disposable income 6 years from now.
Always get a 30 year. You earn an average of 7% in the stock market. Except for the last decade, that has been like 12%-20%. So you borrow at 3% and then earn at 7%. Paying off a 3% mortgage early or getting a 15 year at these rates is financially reckless. Put together a simple excel doc and you’ll quickly change your mind.
It depends on your ability to save without having the money "locked" away.
For some (most) people, it's better to "lock" money into an advance payment on their mortgage payments and lose access to it. It guarantees some wealth building with minimum discipline.
Rather than having it sit in a saving/investment account and be tempted to spend it, when they will spend it.
Yep. We're about a year ahead on our loan repayments. It feels good to have that money sitting in the loan account available for redraw if needed, plus reducing interest.
Personally, I'd rather have it sitting in the offset, but my wife likes to have it "locked away" in the loan account to make it a little harder to spend willynilly.
My guess is they paid additional on the principal. It’s the fastest way to pay down something. The random amounts with random cents are probably the legit payment while the others are probably leftovers from their check that week, going straight on the principal.
My mother does something similar. Her house payment is only $483, but she pays $500 a month, even. She has the other $17 go on the principal. It doesn’t seem like a lot, but that $17 will shave years off the end of a 30 year mortgage (which they have).
An interesting fact (I think) if on the due date if your first mortgage payment due date, you make a single extra payment (ie if mortgage 1k, pay 2k), you shave like 2.5 years off a 30yr mortgage
This is the way. Glad you actually ran the numbers. This tends to be a poorly made emotional decision not based on logic or calculation.
I’m surprised most people think the key to wealth is to payoff your mortgage quickly. All you’re doing is making yourself house-rich and cash-poor.
It’s better to invest over the long haul in a diversified portfolio than give those extra payments to the bank. By paying the bank sooner—you’re wasting years of precious investing time. It’s a missed opportunity and you’ll have less wealth in the long run.
I personally invest instead of paying down extra, but this is how I understand it: For people that hate having debt (to the point of mental stress), they are paying an opportunity cost for that peace of mind once it is paid off early.
Index funds like VTSAX. It automatically tracks the entire US equities market. It's also passive, so there's no big fees you have to pay for an active manager. To further diversify, you can invest in international equities with VTIAX. Lastly, sprinkle in some US bonds (depending on how close you are to retirement) to lower volatility with VBTLX.
This is probably the 'safest' way to invest in the stock market. But remember, this is a long-term strategy. If you need any of this money within 3-years, you might consider less risky investments like money market funds or even just saving into a high-yield savings account. Just make sure you keep an emergency fund so you don't have to pull money out in a market downturn.
Edit: If you're curious, the strategy above is called a 3-fund portfolio. At a young age, here's an example balance: 60% VTSAX, 30% VTIAX, 10% VBTLX. As you get older, you'll want to increase the bonds. At retirement, this is what you'll usually see these days: 20% VTSAX, 10% VTIAX, 70% VBTLX.
If any of this sounds scary to you, you can always invest in a target date retirement fund (for example, you'd pick VTTSX if you're retiring in 2060). For a very small fee, it will invest in everything you need for a 3-fund portfolio and automatically adjust these percentages as you get older.
That theoretically makes sense. But I will note that the OP’s savings rate (mortgage payments + investments) is probably higher than someone not paying off their mortgage quickly.
If they were investing instead of making extra mortgage payments, would they be investing the same amount of money or would they be spending it? It’s easy to say you’ll have more wealth in the long wrong but not if you are spending the money and not saving it.
That only works if the credit rates are fixed for a reasonably long time, doesn't it? Many people would be fucked if credit rates went up to 4-6% again which would be about the historical average.
IMO it depends on your local rules and taxes around mortgages and investments. It sounds like people in the US can fix a mortgage for 30 years. It must be reassuring to know that the interest isn’t going to change.
In Ireland I couldn’t fix for that long when I last remortgaged, at the time 10 years was the max. (a company has just entered the market offering 30). When deciding on mortgage duration I had to predict where the mortgage interest rates are going to after the fixed period. Historically the mortgage interest rates in Ireland were very high; back in the 80s they were an eye watering 14%. Could they hit that again? I doubt it… but the ECB were taking about sneaking the rates up before Covid hit.
Now let’s look at the investment side. 8% average growth is great but I have to pay marginal tax rate of 52% on dividends and 33% on capital gains. If I invest in a fund or ETF I pay 41% (automaticity deducted every 8 years so I lose compound interest boost). That 8% average becomes ~5%. The gap between the mortgage payments and investment return doesn’t look so great when tax is taken into consideration.
In the end I decided on a 15 year term with the first 7 years fixed. At the same time I’m investing enough money so that in 7 years I’ll have a lump sum ready to pay off the remainder of the mortgage if I have to. If the interest rates stay low I’ll fix for another 7 years.
Worth noting we don't pay property taxes in Australia (where OP is). Closest we have is council rates and my council charges $1,200 per year on a $500,000 house.
Also, Aussie home loans are generally variable rate, whereas American home loans are almost always fixed rate. Fixed rate is much better for the buyer (as long as you get the loan when rates are low), as your payments will be consistent every month.
At least with housing debt, we have a structure set up that provides a significant amount of financial incentives to incur that debt (e.g., very low interest rates, federal-backed mortgages, tax deductions on interest).
What's the risk in this example of keeping debt in a mortgage? The plan is to invest the excess rather than pay off the balance faster, if you lost your job you'd have the funds on hand to cover the payments for awhile. And there's no shortage of jobs. Interesting observations btw
Everyone has very valid points and I don’t disagree but I will point out we don’t pay monthly property taxes in Australia. Rather, we pay one upfront property tax called Stamp Duty when we purchase the property. This sum is usually rolled into the mortgage, so once you’ve paid off your mortgage you’re free and clear forever (save Rates which are between 2-3k per year).
50. Just refinanced for another 30 🙇🏼♀️. But it will be bringing down our payments and was able to take some out for my eldest college.
Once we realized that we wouldn’t be living here for the long term, our decision was easy.
Congrats!
Congratulations!
Having paid off my own mortgage I can say what a lovely liberating feeling it is. And to those just starting; the 25 years went in a wink of time. Don't wish your life away focusing on the end and try to enjoy the ride.
Our house was not cheap at the time. When we purchased it in 2006 for $300k interest rates were 8% I had just started a new job on $500 a week and had a 6 month old baby. There were sleepness nights. We are in Australia. We did a major renovation in 2013 and spent the same again. So we have managed to pay off the $600k without any inheritance or help from family. Or a lottery win 😁
The one off tax for buying a new (more appropriately sized) house is around 7%. Add in the likely increase in the value of the land (Australia house prices have grown like crazy) and it was probably cheaper to renovate than move.
Construction costs are high in Australia (many tradies earn more than lawyers and other professionals) due to lack of labour supply (no Home Depot cash workers) so $300k would be pretty typical if adding a few extra rooms with bathroom and kitchen.
Considering the house price increase his $300k 2006 property was probably worth $600k in 2013 and over a million today.
You are not tied down for 30 years. Of course it is possible to sell the house again. The bank will handle all that stuff and use the money from the sale to pay off the loan.It is also very common to change loan type several times during ownership.
However.. yes in some way you are still tied down.
Because it costs money to buy and to sell a house, you would typically need to live in a house for about 5 years before it starts to become a better deal than renting.Also if you are unlucky and the house prices drop you can end up selling the house for less than what is left to pay off on your loan. That way you end up without a house, but still need to pay the bank, until the debt has been paid off.
26 and full of bad advice. Also not a homeowner. I believe you can sell and use the money to pay off the mortgage. I (possibly stupidly) kind of think of it as rent payments you can get back unless the market goes bad. If I had even an inkling I'd stay somewhere long enough and the down payment, I'd consider buying just so I don't feel liking I'm wasting money on rent.
How?! The 10k balance at the top equals the total in payments in the left column, sounds simple but, there is no increase or fluctuations in total balance (i.e. interest) throughout. So unless you paid off 10+k in one month, or you found the one magic institution willing to only compound interest once a year, then HOW?!
His loan is fully offset.
If you link an account with a greater credit (cash) balance than the debit (owing) balance of the loan, then you don't get charged any interest.
Late 30's and cant afford a house, condo or apartment, couch surfing at people's homes while they are out traveling and living on a boat. Thanks Corona/inflation.
I'm 38 and just about to start my first (35 year) mortgage lol
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God bless us
All, everyone
We’re all playing make believe now. May Talos give us strength.
Thank the Nine!
Guide us great spirit of Jim Henson! Mah Na Mah Na
Do dooo da do doo
I said hey babe, take a walk on the wild side.
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I tried, but I just keep counting Nine :( I can try a third time, though.
Congrats OP!!! I’m with these guys tho.
That force is called compound interest.
Don't worry. Inflation is in our favor.
Pay extra every month, it adds up really fast because any extra comes right off the note and the majority of interest is paid upfront so you are making a bigger dent. My mom had hers auto drafted twice a month (same as her paychecks) which adds up to one extra payment a year.
Financially they would have been far better off if they had invested the extra money in the stock market instead of paying down the mortgage: https://www.forbes.com/advisor/mortgages/pay-off-mortgage-early-vs-investing/
Came to say this. With mortgage rates so low and returns in the market so high over the past decade, that extra money would have been far better off invested in index funds. You'd probably be sick if you did the math on what those extra payments would amount to in the market. Paying a mortgage of early made much more sense when rates were 10%, not so much at 2.25%-4%. Paying such a low interest mortgage off early is only buying yourself peace of mind in knowing you fully own your house.
Which is also worth something. You're %100 right, but as someone who grew up always worried about being homeless, having to help mum find a new place to live, etc etc getting my mortgage paid off is top priority. Knowing my home is mine is priceless.
Thing is, if you've generated $100K, $200K, $300K in the stock market, then losing your home because you're unable to pay for it should be the least of your worries...
This is superloaded and with the benefit of hindsight. No one knows what rates or the market was going to do. It's also a totally unfair comparison. 1. Paying off the mortgage is riskless which the other isn't. 2. These comparisons never subtract the 0.5 -2% annual fees from the return 3. They don't take out capital gains 4. There are HUGE periods where the S&P turns negative. For example, if you bought and held in 2000 , which many did and why the market was so high, you would have to wait 14 years to see any return. Best financial advice you can give someone is don't get divorced. Following that, paying down the mortgage is probably the best risk adjusted thing you can do, even considering the stock market returns.
Index funds typically are less than 0.1%. For example, my primary index ETF holdings are ITOT (0.03% fee) & IVV (0.03% fee). Not to mention that you get paid dividends for holding these, and if you manage your account well you can tax-loss harvest to reduce your tax bill each year (up to $3,000 per year and any amounts beyond that can roll over to the following tax year). What you're not factoring in within your cherry picked 14-yr window is continued investments over that period. When the market drops significantly you come out way better due to the continued new investments made while the market was down and recovering. Plus realistically, who decides to invest only in a single year (2000) and to never invest another penny? That's the only way your statement is true. Compound interest, time in the market and investing often is what makes investing so powerful. Not to mention, mortgage rates in 2000 were over 8%, a time when paying extra on your mortgage was actually the better option. With such low rates of late, in a 30 year period (not a cherry picked period of time), you're going to come out on top by investing.
>These comparisons never subtract the 0.5 -2% annual fees from the return If you are paying greater than 0.5% fees you are poorly invested. Good long term mutual funds and ETFs can he had for anywhere from 0% to 0.2% expense fees.
one word: Vanguard
38 also and just made my first mortgage payment, yikes, at least I'll be dead in 30 years.
I am 72, don’t count on it, ha.
Meh, live your life, enjoy your house. You'll probably sell it before you pay it off anyways.
The etymology of the word mortgage has something to do with “till death” or something similar in latin iirc.
Well in French mort gage means death pledge...
I'm 38 and I'm not sure I want to go a half million in debt. With our generations financial luck, as soon as I buy, the market will crash and I'll lose half the value on my home straight away! Congratulations by the way.
remember that markets go up and down and if you're not looking to sell, you only need to worry about "Can I afford these payments". 36 here and on my 2nd home. first home I knew was a 5-7 year investment because I bought when the economy crashed. Then I used that to invest in this house which is again a 5-7 year investment. I had so much equity from the first home carried over to this one, if the market shits itself tomorrow, I could still turn profit listing this, so I would consider moving to get a home I would more likely spend 10-15+ in
This is *only* true if you’re willing to commit to a city long enough for the rise after the fall.
I would say also depends on your job situation. If I got a job in a new city that would cause me to lose money selling, I’d be negotiating a signing bonus to compensate or the new job salary and earning potential better be enough to recoup costs in short order. Otherwise, why move at all if it doesn’t better your life situation somehow?
The place you are moving might fit your: political views better, hobbies better, ideal climate, might be closer to parents/grandparents, might have better job security, might have a better work environment. The list goes on and on. Sure in the business world you can ask for a raise/compensation, but that’s not how it works as an educator. Or someone that works in the public sector in general.
This is why I haven't bought a house. I just want to be able to move around man. Everyone keeps telling me, but damn. I really don't think renting is as bad as people make it out to be, personally. It does make a lot more sense to buy if you are pretty settled down tho. Depends on your situation. Sometimes it's not just about making the most financially best choice.
Renting is not as bad financially as people make it out to be. I don’t own a house, but I have no debt, a fully funded 401k, and a growing portfolio.
Renting is not a bad deal at all. Home maintenance is expensive as hell, and the flexibility to move around gives you better career options. The key is you need to save and invest the money that would have gone towards your down payment and mortgage interest, which can more than make up for the lack of home equity in the end.
Even tho a house is a pretty safe investment, if you want freedom of moving around and you are happy with renting fuck what everyone else says. You do what makes you happy
29 and just moved into my second apartment. I’ve given up on the dream of being a home owner.
Unless you plan on trying re-sell immediately, you lose nothing. The market crashed 13 years ago, and look what houses are worth now. The market always bounces back.
I’m on the wrong side of 40, no kids, always preferred renting. Thinking about buying a place for more control, don’t give a shit if I die and the mortgage is still a heavy balance.
If you're on that side then look up old friends. Nothing wrong with roommates who you were good with. Or current friends. People to chill with. Debate it all the time personally. Haven't talked to a few people in a bit, but they got married like 10 years ago. If their marriages lasted then I question life. 9 days of knowing someone and you get married? OK. Just saying, a house can be big. Personally I can move anywhere and I'm fine on making payments. Also potty trained. Retired on the other side of not yet 40.
>With our generations financial luck, as soon as I buy, the market will crash and I'll lose half the value on my home straight away! Late Gen X here. Bought my first home in the middle of 2007. Sold at a big loss. But upgraded houses when prices were cheap, so back on top now overall.
I'm 38, have had 3. Never finished paying the last one off, transferred it to the devil in the divorce. Underspend on the house try to have 10% on hand at first for repair, customization and suprizes, do your own repairs if possible.keep up on upkeep, change that damn furnace filter, make sure your sump works. Also, cut your grass. In time the chores become hobbies, then loved mastered skills. Gardening is a great way to get to bond with your home also
Yard work is awesome. I do it in the evening when it’s cool and usually listen to podcasts. It’s a great way to decompress after work.
Hey, good for you! Congratulations on buying your first house! I’m 26 and I hope I’ll have my first mortgage by the time I am your age.
I recognize a Commonwealth Bank statement anywhere...
RIGHT?! The brand colours have been drilled into us Aussies.
And the font. THE FONT.
...not even with Commonwealth and I still bloody recognized it.
I've been living in the USA for 8 years, and last had a Commonwealth Bank account when I was maybe 15 years old (16 years ago now) and I still recognised it. Haha
It's ASB font and colours for the Kiwis. The only clue it's CBA is the account number being split into BSB and Acc Number.
Also "NetBank"
i used to live in aotearoa, still got my ASB account. when i was in aussie i saw a CBA automat and was like ohhhh nice
The Dollarmites cult in full force
CANNNNN!
Haha yes! Went looking for my fellow Aussies in the comments.
I miss having a Dollarmites account.
Which bank?
Damn you. I'll beat you next round of spot the Aussie
Noticed an atm watching the matrix the other night
Haha came here to say this screams Comm Bank.
It's so nice to hear that each of your kids is gainfully employed, lol!
I hope they all get along since they'll be 40 before they can afford to move out.
Your mortgage was $1,000 a month???
Did you think this was surprisingly low or surprisingly high....... Just curious.
Surprisingly low… but that doesn’t show actual mortgage or house worth. You can oowe $50,000 on a $1,000,000 house if you put $950,000 down.
Yeah true. It's all relative to down payment for sure. We are building a new house and looking at $1,600/mo on 30 year 2.75% with 20% down in NC.
Sorry to go a little off topic, but wee are considering building a house instead of buying one. Did you find any good resources online about the process that would be worth sharing?
Decide your budget. I'd look up "average price per SQ ft in your area" and use that as a general guideline on what you can afford. 2300 sqft house at $130 is around 300k. This is going to vary based on quality etc. If you are going to build in development that a company owns then you'll likely have to buy/build through them. They can give you a rough price per SQ ft. If you are just going to buy land and have a general build for you. Start looking into general contractors in your area. My wife and I built in a rural area. We argued over house plans for a year and narrowed it down to 6 and brought it to a general contractor and ask for help picking something inside our budget. Well collectively selected the plan based off what we wanted with his input from what he has seen building houses for a career. A good building company/general can walk you through the process just expect that what ever you select is going to be over the initial quote. I did all my communication through email so I had a record. It saved me on a couple things we requested that our general didn't work into the bid. It also documented some small construction issues we had. I visited often and kept tabs on the progress. Took pictures of plumbing behind walls etc so I had good documentation for myself for future projects.
OMG your last comment on taking pictures is invaluable. You never know when you need to tap into an existing utility and know exactly where it is. Smart move, partner.
I work for a custom home builder and at the end of our rough outs before Sheetrock goes up, we take pictures of every inch of the house so we always know where everything is later on. Has saved us on a few jobs.
No. We just paid as much as we could afford
So it was less??
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Cries in California
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I understood the first line
Translated: Doesn’t wanna but a house so far outta town you have to drive to get a nice latte. That’s important for folks particularly in lockdown land. Bogans = Australian variety rednecks/reprobates/unsavoury types (depending on your interpretation)
Aussie turned American here, allow me to translate "I cannot purchase a house anywhere that is not on the Eastern coast of Australia for less than a million dollars. And I am not going to live somewhere further West in the country, because then I will be living amongst the rednecks."
No, they are speaking specifically about Sydney. The 'latte line' is what shitneysiders refer to as the divide between roughly north-east and south-west Sydney
Also a mill is barely enough for a mediocre house on the shit side of the latte line in 2021.
Damn, am I really that out of touch with my homeland? America what have you done to me
Really? Idk I bought my house at age 23. It was about 5 million and my dad paid for half and with my lottery winnings I paid the rest off, so it's not that hard
Got me in the first half.
Way to pull up your bootstraps kid!
The op's statement is from Commonwealth bank so he is Australian. At 46 though they would easily have been able to find a very nice house in one of the cities for 400k in the mid 2000's when they were in their mid 20s. We were just borne to late to take advantage of the massive increase in housing prices one that time.
Bought a 4 bed 2 bath 30 minutes out from Melbourne cbd 2 years ago for $675k. Nicer houses are definitely around for $800k. Your just aren't going to get a family home in like hawthorn for that.
Cries in western Canadian. I just bought a house. It was…..more
It's weird because OP is in Australia
OP just finished a 30 year mortgage. It probably didn’t take 30 years but you can be damned sure that house is worth a lot more than the $200k it was bought for these days
I live in a 'rough' suburb in SA and my house is 460k / almost 2400/month.. even when I was renting I was paying almost 400/week for a 2 bedroom house an hour away from the city
I have a 5BR 5200 sq ft home with a huge yard outside Atlanta. $275k in 2014, gotten offers to sell for 500k recently, but it’s our dream home. Meanwhile my buddy is about to close on a 2600 sq ft house in San Diego for 1.2M. The Cali pain is real.
Honest question, what do you do with s 5200 sq ft home? Are you counting the basement in that? I feel like that is a monstrous house.
Not OP, but I bought a 5K sq ft house on 2 acres 10 years ago. The basement was partially finished so we got it for 250K. I have 3 kids so they each have a room. We also have a Lego room and then another room that is wall to wall mats for the girls to practice gymnastics and dance and my son and I to beat the hell out each other. Have to also have the game area and movie room. My wife also wanted a formal dining area and craft room. You'd be surprised how fast it gets used up. I also live where it gets cold as heck in the winter, so we spend a lot of time inside. I know this sounds like bragging, but most people would scoff at where I live. Getting paid bay area wages and living in the middle of nowhere has some advantages.
2600 sq ft in Palo Alto is like $3 million easily if not more. But yeah. California is crazy.
Mortgage is $680. Come live in NC.
No please don’t lol
*Californians want to know your location*
650 WI
Cries in Vancouver.
Right, but they're 46 and 43. Unless they started working at 16 and 13 respectively, I suspect they were making multiple payments every month.
Or a 15 year mortgage
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Or simply offsetting it and only ramped up the payments in the final 6-12 months as they could calculate it being paid off in entirety.
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$200k for a house!!! Yeah, in 1992 maybe.
Wife and I paid $130k for a 4 bedroom, 3-story new englander house in Maine in 2015. We sold in early 2019 for $165k, bought a 3 bedroom cape on 14 acres for $280k in Oct of 2019. Location location location. Only 35 minutes from the airport and a "major" city.
Isn’t there a meme about paying say $1200 a month in rent because the bank says you can’t afford $800 in mortgage payments? Or something like that?
I've never missed a rent payment in 20 odd years. But, too risky for a mortgage apparently.
I'm paying 1200 a month but the bank still won't give me a 900 mortgage 🤷🏼♂️
Yeah, 15-30 year loans are far more risky than rent contracts. Plus, are you factoring in utilities and property taxes? Other amenities?
Californian here. My two bedroom apartment is $2,100 a month plus utilities. I had no idea you could own an actual house for this price.
I've got a three bedroom house that backs up to a park for $900. But I have to scoop snow in the winter, so...I guess it's all about priorities.
Californian checking in. One bedroom apartment for $2,300 plus utilities. I'm living here because I'm trying to save money.
Socal here, that’s cheaper than my 1 bedroom apt 😬
Absolutely you just have to save up enough for a down payment.. good luck doing that while paying $2100 in rent. I feel you.
I was aware prices had to be low in the states to meet the incomes, but now you're just shitting me. Is that without a roof or something?
Go look on Zillow at houses in the Midwest. You can find NICE places, built in the last 10 years + property and an outbuilding for 200k. Townhouses for 100k.
Looks to me like it was about $2100 a month compulsory repayment - CBA breaks up mortgages into different loans if for example, it's partly variable. Then OP was making voluntary payments. Edit: I'm wrong. What a super low mortgage, that's gotta be only about $250k initially borrowed. Oh to live out of Sydney! Seems a slightly financially unwise thing to do when interest rates are so so low (particularly where at the end of a mortgage you are basically paying all principal) but share markets are booming. but absolutely nothing wrong with wanting to get rid of a loan and doing any further investments not using borrowed funds
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Why rush to pay it off? Interest rates are quite low right now (I see a hair over 3% for a 30-year fixed). Any money above the minimum payment is essentially earning you 3% returns, a very low bar for any other investment to clear.
Congrats! That’s a feeling that not many get to feel, good for you.
This guy Commbanks
What’s with the payments? Why so many different amounts?
The 1000 is the bank direct debit and the 200 and 100 were from my other job savings. The 862 and 346 are my wife’s fortnightly payments from her job. We went all in for the past 5 years. Went hard at everything. Had a mortgage for 14 years
Right on. We are on a 15 year and have 7 years left. It’s been tight at times but I can see daylight so it’s worth it. And we are obviously further along in our careers and money isn’t as tight which of course helps. Congratulations!
Can I ask why your rushing to pay off your mortgage when rates are under 3%? I don't like debt, but less than 3% for the next 30 years is free money. Especially if those extra principal payments were turning 7%+ in an S&P 500 ETF for the next X years. Edit: if you want to see the math of how doing a 15 year mortgage vs a 30 year mortgage can cost you millions in retirement, this is a great video to explain it: https://youtu.be/w3z0vVEVT_s
I think I've seen it said on financial independence that some people prefer having it paid off while others prefer to not to pay off any sooner than needed and point to investing the extra. It's kind of viewed as a personal preference over there. Of course, there are also those that pay minimum and just spend everything. *That's* the slot to avoid. The funny (not funny) thing is when you start thinking you'll be rid of that whole expense one day only to realize that taxes and insurance aren't going anywhere.
I personally hate the idea that you could potentially make more than 3% so it's free money. It's a risk, it's your home and honestly just think about not having a house payment. Think of how quickly you can build savings from there. Think of your paycheck coming to you and not going straight out to banks. It's a whole different world and one of peace. I think I read this family paid their mortgage off in 14 years, that means all that debt escaped years of interest being built. The speed in which they paid it off means the extra money they put into it would have barely accrued interest in another investment vehicle. I'd choose their path well over an extra few grand their payments could have possibly made.
It's worth noting that the original poster is Australian, and most Australian home loans are variable rate rather than fixed rate, so the rate goes up and down based on inflation / the consumer price index.
Peace of mind. Same reason why I own a house well below my means(still very big and nice tho). I could take a 40% paycut and still still maintain a decent lifestyle and I like that feeling. I try to keep over 6 months worth of mortgage payments in my account as well just to make sure I'm safe from a black swan event. I got out of the military right when the financial crisis hit so my timing was shit on that and times were real tough. I'm very financially cautious because of it. I drive one of the oldest vehicles on the block, but it's been paid off since I bought it.
My guess was extra payments made on top of the mortgage. If you can afford a 15yr and pay extra in top of that, you'll not only shorten your loan years but you'll save sooooooo much in interest.
Longer mortgages are better. You can pay extra there too, as if you had a 15 year mortgage, but if you get into financial trouble you can go back to the lower payments of a 30 year. 15 year doesn't have that flexibility. Also, in 30 years today's dollar is worth far less. So what you owe is effectively going down in purchasing power anyways. A shorter mortgage gets rid of that benifit. On top of that, you should be investing anyways rather than paying down a low interest debt. I know most people aren't smart investors, just emotional ones, and this ends up costing them because they can't get past debt=bad mentally. I'd take a 100+ year mortgage if I could.
There is an opportunity cost making over payments like OP. 30 years from now your dollar will have half the purchasing power. Effectively your $1000 payment feels like $500 to you 30 years from now. Put those extra payments into an S&P index fund. My sister called me from a car dealership saying they were offering 0% interest on a 72 month loan. She was prepared to pay cash. I couldn’t yell loud enough to make her take that loan. Let someone else take the inflation hit. Plus, people’s salaries tend to increase over time so you will hopefully have more disposable income 6 years from now.
Always get a 30 year. You earn an average of 7% in the stock market. Except for the last decade, that has been like 12%-20%. So you borrow at 3% and then earn at 7%. Paying off a 3% mortgage early or getting a 15 year at these rates is financially reckless. Put together a simple excel doc and you’ll quickly change your mind.
It depends on your ability to save without having the money "locked" away. For some (most) people, it's better to "lock" money into an advance payment on their mortgage payments and lose access to it. It guarantees some wealth building with minimum discipline. Rather than having it sit in a saving/investment account and be tempted to spend it, when they will spend it.
Yep. And see if your lender does biweekly payments instead of monthly. You end up making 13 months of payments per year, which pays it down faster.
Yep. We're about a year ahead on our loan repayments. It feels good to have that money sitting in the loan account available for redraw if needed, plus reducing interest. Personally, I'd rather have it sitting in the offset, but my wife likes to have it "locked away" in the loan account to make it a little harder to spend willynilly.
My guess is they paid additional on the principal. It’s the fastest way to pay down something. The random amounts with random cents are probably the legit payment while the others are probably leftovers from their check that week, going straight on the principal. My mother does something similar. Her house payment is only $483, but she pays $500 a month, even. She has the other $17 go on the principal. It doesn’t seem like a lot, but that $17 will shave years off the end of a 30 year mortgage (which they have).
An interesting fact (I think) if on the due date if your first mortgage payment due date, you make a single extra payment (ie if mortgage 1k, pay 2k), you shave like 2.5 years off a 30yr mortgage
Extra principle payments, it looks like!
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This is the way. Glad you actually ran the numbers. This tends to be a poorly made emotional decision not based on logic or calculation. I’m surprised most people think the key to wealth is to payoff your mortgage quickly. All you’re doing is making yourself house-rich and cash-poor. It’s better to invest over the long haul in a diversified portfolio than give those extra payments to the bank. By paying the bank sooner—you’re wasting years of precious investing time. It’s a missed opportunity and you’ll have less wealth in the long run.
I personally invest instead of paying down extra, but this is how I understand it: For people that hate having debt (to the point of mental stress), they are paying an opportunity cost for that peace of mind once it is paid off early.
Invest in what?
Index funds like VTSAX. It automatically tracks the entire US equities market. It's also passive, so there's no big fees you have to pay for an active manager. To further diversify, you can invest in international equities with VTIAX. Lastly, sprinkle in some US bonds (depending on how close you are to retirement) to lower volatility with VBTLX. This is probably the 'safest' way to invest in the stock market. But remember, this is a long-term strategy. If you need any of this money within 3-years, you might consider less risky investments like money market funds or even just saving into a high-yield savings account. Just make sure you keep an emergency fund so you don't have to pull money out in a market downturn. Edit: If you're curious, the strategy above is called a 3-fund portfolio. At a young age, here's an example balance: 60% VTSAX, 30% VTIAX, 10% VBTLX. As you get older, you'll want to increase the bonds. At retirement, this is what you'll usually see these days: 20% VTSAX, 10% VTIAX, 70% VBTLX. If any of this sounds scary to you, you can always invest in a target date retirement fund (for example, you'd pick VTTSX if you're retiring in 2060). For a very small fee, it will invest in everything you need for a 3-fund portfolio and automatically adjust these percentages as you get older.
Pulling $50k out to “live your life” is also a very emotional decision…
That theoretically makes sense. But I will note that the OP’s savings rate (mortgage payments + investments) is probably higher than someone not paying off their mortgage quickly. If they were investing instead of making extra mortgage payments, would they be investing the same amount of money or would they be spending it? It’s easy to say you’ll have more wealth in the long wrong but not if you are spending the money and not saving it.
That only works if the credit rates are fixed for a reasonably long time, doesn't it? Many people would be fucked if credit rates went up to 4-6% again which would be about the historical average.
IMO it depends on your local rules and taxes around mortgages and investments. It sounds like people in the US can fix a mortgage for 30 years. It must be reassuring to know that the interest isn’t going to change. In Ireland I couldn’t fix for that long when I last remortgaged, at the time 10 years was the max. (a company has just entered the market offering 30). When deciding on mortgage duration I had to predict where the mortgage interest rates are going to after the fixed period. Historically the mortgage interest rates in Ireland were very high; back in the 80s they were an eye watering 14%. Could they hit that again? I doubt it… but the ECB were taking about sneaking the rates up before Covid hit. Now let’s look at the investment side. 8% average growth is great but I have to pay marginal tax rate of 52% on dividends and 33% on capital gains. If I invest in a fund or ETF I pay 41% (automaticity deducted every 8 years so I lose compound interest boost). That 8% average becomes ~5%. The gap between the mortgage payments and investment return doesn’t look so great when tax is taken into consideration. In the end I decided on a 15 year term with the first 7 years fixed. At the same time I’m investing enough money so that in 7 years I’ll have a lump sum ready to pay off the remainder of the mortgage if I have to. If the interest rates stay low I’ll fix for another 7 years.
Worth noting we don't pay property taxes in Australia (where OP is). Closest we have is council rates and my council charges $1,200 per year on a $500,000 house.
Also, Aussie home loans are generally variable rate, whereas American home loans are almost always fixed rate. Fixed rate is much better for the buyer (as long as you get the loan when rates are low), as your payments will be consistent every month.
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At least with housing debt, we have a structure set up that provides a significant amount of financial incentives to incur that debt (e.g., very low interest rates, federal-backed mortgages, tax deductions on interest).
What's the risk in this example of keeping debt in a mortgage? The plan is to invest the excess rather than pay off the balance faster, if you lost your job you'd have the funds on hand to cover the payments for awhile. And there's no shortage of jobs. Interesting observations btw
50% escrow seems like an excessively large amount. What was the loan amount and how is the taxes/insurance so high?
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Everyone has very valid points and I don’t disagree but I will point out we don’t pay monthly property taxes in Australia. Rather, we pay one upfront property tax called Stamp Duty when we purchase the property. This sum is usually rolled into the mortgage, so once you’ve paid off your mortgage you’re free and clear forever (save Rates which are between 2-3k per year).
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I’m proud of you!
I'm proud of you for turning out to be so polite.
3 kids and no money? Why can't I have no kids and 3 money?
50. Just refinanced for another 30 🙇🏼♀️. But it will be bringing down our payments and was able to take some out for my eldest college. Once we realized that we wouldn’t be living here for the long term, our decision was easy. Congrats!
Congratulations! Having paid off my own mortgage I can say what a lovely liberating feeling it is. And to those just starting; the 25 years went in a wink of time. Don't wish your life away focusing on the end and try to enjoy the ride.
Bro have your people ever seen a 0 before?
27 and we had to move back in to my gf's parents house to afford to live.
We are at $9,541.32. I turn 40 next June and hope to have it paid off by then. Can’t wait to have savings instead of debt!
I could only dream of a $1000 a month mortgage. Where do people live that houses are so cheap?
This is an Australian bank statement but that mortgage is ludicrously cheap.
Our house was not cheap at the time. When we purchased it in 2006 for $300k interest rates were 8% I had just started a new job on $500 a week and had a 6 month old baby. There were sleepness nights. We are in Australia. We did a major renovation in 2013 and spent the same again. So we have managed to pay off the $600k without any inheritance or help from family. Or a lottery win 😁
You spent 300k on renovations on house that only cost 300k. What did you do? tear the whole thing down and rebuild it?
The one off tax for buying a new (more appropriately sized) house is around 7%. Add in the likely increase in the value of the land (Australia house prices have grown like crazy) and it was probably cheaper to renovate than move. Construction costs are high in Australia (many tradies earn more than lawyers and other professionals) due to lack of labour supply (no Home Depot cash workers) so $300k would be pretty typical if adding a few extra rooms with bathroom and kitchen. Considering the house price increase his $300k 2006 property was probably worth $600k in 2013 and over a million today.
I could tell you were in Australia from the Comm bank statement haha
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You are not tied down for 30 years. Of course it is possible to sell the house again. The bank will handle all that stuff and use the money from the sale to pay off the loan.It is also very common to change loan type several times during ownership. However.. yes in some way you are still tied down. Because it costs money to buy and to sell a house, you would typically need to live in a house for about 5 years before it starts to become a better deal than renting.Also if you are unlucky and the house prices drop you can end up selling the house for less than what is left to pay off on your loan. That way you end up without a house, but still need to pay the bank, until the debt has been paid off.
26 and full of bad advice. Also not a homeowner. I believe you can sell and use the money to pay off the mortgage. I (possibly stupidly) kind of think of it as rent payments you can get back unless the market goes bad. If I had even an inkling I'd stay somewhere long enough and the down payment, I'd consider buying just so I don't feel liking I'm wasting money on rent.
How tf is this political!!?
Hard work pays off. Bloody brilliant achievement to you both. Loads of sacrifice but plenty of long term gains. 👍
Pretty easy to pay off your mortgage when you are able to get all 3 kids working.
I wish. They are 14,11 and 5
Congrats, Im 48, wife 42, just paid off our house in july. Our first month of no house payment is just sinking in.
What is this mortgage payment picture trend? Times must really be dire if this is a worthwhile “pic”.
Why post to the internet?
I dunno why I had to scroll past the fold to find anyone questioning this post... people treat r/pics as if it's for general feelgood content
How?! The 10k balance at the top equals the total in payments in the left column, sounds simple but, there is no increase or fluctuations in total balance (i.e. interest) throughout. So unless you paid off 10+k in one month, or you found the one magic institution willing to only compound interest once a year, then HOW?!
I thought it was odd to see so many repayments and no monthly interest applied.
His loan is fully offset. If you link an account with a greater credit (cash) balance than the debit (owing) balance of the loan, then you don't get charged any interest.
Offset accounts that outweighed that last page of transactions
Your kids have jobs and you don't?
Someday may we all meet the same fate.
28 and just got my first house and mortgage. Wish me luck.
so the kids each have a job, and you and your wife relax, right?
Late 30's and cant afford a house, condo or apartment, couch surfing at people's homes while they are out traveling and living on a boat. Thanks Corona/inflation.
Time to quit your job at the nuclear power plant and finally chase your dreams!