Comments on: How Does it Feel to Pay Off a Mortgage? One couple's story of escaping 9 to 5 until 65 Wed, 20 Jul 2016 17:22:09 +0000 hourly 1 By: Bryan Mon, 17 Aug 2015 18:46:30 +0000 Young,
That is awesome that you paid off your mortgage 14 years ago. What an accomplishment. I am doubly impressed that you paid cash for a second home. I have never bought a house outright for cash. We have come close, but never quite there.

BTW – I know exactly how you feel about having a paid off mortgage instead of more money in the market.

It seems your situation and ours are very similar. I would be curious to hear what you are going through on deciding where to live, your plans for RV’g, and what is driving your decision on when to retire? Those are normal conversation topics for us in this house! 🙂

Would you be up for a guest post to tell your story?
Take care,

By: Young Mon, 17 Aug 2015 00:08:53 +0000 We paid off our mortgage that we ever had in 2001, it was our first purchase. We bought two more brand new houses after that with all cash. I am 53 years old now and my husband is 57. We had been wrestled with issues you mentioned above, paying off the mortgage or invest in equity. I decided to pay off the mortgage. We refinanced our 30 year to 15 year later on and made three payments every month mostly. It took about a little over seven years to pay off. At that time, stock market was doing very well, yet there is no guarantee in stock market. On the other hand, I knew what I was getting exactly by paying off mortgage early and it was guaranteed. Right after we paid off mortgage, 9,11 in 2001 happened. I don’t have to tell you what happened to the stock market after that. My financial motto is “never to gamble with fundamentals. We had a very good deal on second home purchase, cash purchase gave us negotiating power.

By: Bryan Thu, 02 Jul 2015 16:46:08 +0000 Jason,

Thanks for stopping by – I am glad you found us!

I loved your statement over at your site: “This blog is my journey trying to find “balance” between creating financial independence, peace in my work life, and sucking the marrow out life to its fullest”. I can’t agree with you more. I think you and I might be kindred spirits. 🙂

I do appreciate your comment regarding our accomplishment of paying off our home. It was a long battle that we were very focused on for years, finally coming to fruition!

The fact that you love your job is seems to be outside of the norm for people reading a blog like this one. I believe that you are one of the lucky few that found your true work. Congratulations!

Take care

By: Jason Thu, 02 Jul 2015 02:04:33 +0000 Congratulations on your fantastic accomplishment! I hope to join you by the time we are 50. Maybe it is a mid-life crisis but I am having a similar desire to move back to our families and friends. Our problem is that I have a job that I love and it is difficult to find the same kind of work where we are from. We will just have to tread water for a bit, but your story certainly gives me inspiration.

By: Bryan Wed, 01 Jul 2015 17:14:10 +0000 Olga,

Thanks for stopping by and commenting. I love the pictures over at your site! It looks like we have a common passion – hiking!

It does seem that we have had some similar life experiences. I started over after 20 years of marriage. We both have certainly seen multiple crashes in our life. It is folks like you and your husband that can understand where we are in our journey. You are certainly facing the same questions and challenges.

I hope the content continues to be relevant and interesting to you. Thanks for subscribing. 🙂

Take care!

By: Olga King Wed, 01 Jul 2015 13:41:35 +0000 It has been my goal as well during my life. I worked hard to pay off my apartment in Moscow 22 years ago just to move to US. After 11 years of renting (NYC!), moved to PNW and was focused on the house (no other debt had ever entered my life, thanks to my frugality and upbringing of the country where credit cards simply didn’t exist). A divorce (just like yours, 18 years of marriage), and during a market crash to add (2008) dropped a bomb on that dream. But with a new husband, who’s ideals are aligned with mine, we’re a short 3 years away to pay off our mortgage and move to a dream state for my part-time job (while he continues to work full time for a while longer). Glad I found your blog. Enjoyed the Reverse Latter Factor article as well.

By: Bryan Fri, 26 Jun 2015 20:45:59 +0000 Thanks for the encouraging words and insight. It is a great feeling having our home paid off! 🙂

You are correct regarding the return on real estate around 0% as an investment, once you correct for inflation. That has been my experience with the properties I have purchased. We have created a passive income stream with our rental properties for the cash flow aspect, realizing the actual appreciation of their value is negligible. We have been able to secure mortgages for these properties and collect rents to cover the operating costs and debt obligations. That debt is nearly gone as well. It is definitely the “get rich slowly plan”.

Our real estate portfolio is only one leg of our financial stool. We also have a large percentage of our net worth in mutual funds and stocks as well. That is why I am enjoying your blog posts and analysis of dividend producing stocks. This gives us some great ideas and another way of diversifying our assets into dividend stocks, providing us some additional passive income.

Take care!

By: Dividend Mantra Fri, 26 Jun 2015 19:38:30 +0000 Bryan,

Congrats on the amazing accomplishment. That’s really fantastic.

“So if you went with the argument about holding on to your mortgage as long as possible, why would you like to be like 45.8% of 55 to 64 year old people in the chart below that have mortgages? How is that helping you to achieve early retirement any sooner?”

That’s easily answered with math. If you can achieve a higher net return from investments, you’re better off keeping the mortgage and investing at that higher return. Seeing as how residential real estate has returned somewhere around 0% after inflation over the last 100 years and rates are so low now, it’s not a terribly high hurdle to clear.

“Had we paid off our investment debt we would have had more cash flow today. Instead we now have 100% equity locked up in a non-liquid investment (called our home) that provides us no ROI. Perhaps we have to measure it in terms of ROE (Return on Emotion) of knowing we can live here forever if we choose?”

That’s the flip side of the coin. You can’t measure the emotional satisfaction of having your home paid off in terms of dollars. If you would have achieved a higher rate of return and now have more wealth by investing more aggressively, would you be as happy ? Maybe not. You’re in a great spot, regardless! 🙂

Enjoy your paid-off home. Fantastic stuff.


By: Bryan Thu, 25 Jun 2015 17:25:41 +0000 Thanks for stopping by! I appreciate the words of encouragement.

Hopefully the ideas and informative posts will keep coming. 🙂

By: Janneth Thu, 25 Jun 2015 09:48:52 +0000 Your story is really inspiring. As a young entrepreneur, I am now thinking of doing the same thing. I will definitely do something like you do.

Your blog is very informative. Thanks for sharing!