I'm Oficially Debt Free!!!

ScottB · #1 10-19-2005, 03:41 PM

Today, Denise and I refinanced or mortgage. We turned a $900 payment on our original 7.50% loan with 18 years remaining, plus our second mortgage payment of $300, into a 15 year at 4.875%. Our new payment is $1249! We also included enough cash back to pay off every car loan, personal loan and credit card we owed. We'll be "saving" an additinal $1500 per month by getting rid of those payments. I also have enough left to put on a new roof, repair and remodel the bathroom and of couse, buy the new J. Vaughan Statocaster that I've been wanting for 6 months!

I can't believe we came through my wife being out of work (medical), which led to our stupidly charging basic living expenses and food for a few months on credit cards. Instead of considering bankruptcy (it was almost that bad!), We enrolled in a debt management plan and began paying down the loans. After 6 new homes were built on our street this year and the skyrocketing property values got my attention, I jumped on the refi as soon as I heard that mortgage loan rates were about to increase.

All that's left is the wait for the bank wire to be transferred, after our 72 hour period of legal right to cancel the loan expires. Yea right, like I'd be fool enough to pass on a deal like this!

One thing is for certain - we'll never charge another cent on a credit card. My new motto is: In god we trust - all others pay cash!

JJEMMER777 · #2 10-19-2005, 04:08 PM

Congrats Screamjem....Isn't it a great feeling???

Now you can buy some (more?) Jems

guitarshredder7 · #3 10-19-2005, 04:11 PM

good job

bluealien · #4 10-19-2005, 04:40 PM

Way to go!!!, Its always a great feeling....

fettouhi · #5 10-19-2005, 06:04 PM

Congratz

.

Regards

André

darren wilson · #6 10-19-2005, 06:08 PM

Being debt free is great... except for the bank still owning your house.

Congrats on the great timing and making some great decisions!

Can you actually get a 15-year term mortgage down in the 'States? In Canada, our mortgages are usually all based on 25 year amortization, but rarely do you find a bank willing to give more than a 5 or 7 year term.

7 Dying Trees · #7 10-19-2005, 09:12 PM

Cool! There will be a day eventually when I am debt free as well, but it keeps going wrong and hence it hasn't happened yet, but it is a plan!

nice one, you're where I want to be!

Flobanez · #8 10-19-2005, 09:15 PM

Congrats! That's awesome.

kennydoe · #9 10-19-2005, 10:10 PM

I remember the day that happened for me too...my CC debt was $17-18000 in my mid/late 20s. I remember lying in bed wondering "how the hell am i ever going to get out of this?"

About 5 years back, when divorce was impending (but we were still living together & had one bank account), i just took every penny i could afford to put towards the debt. A lot of it was hers anyway, so my conscience was clear. I was keeping the money out of her hands by doing this also. Usually i'd deposit my paycheck during the day and write the check to the CC company that night.

It was the most amazing feeling paying off that last one. I can totally relate to your feeling of euphoria! Just try to keep the debt in check now - it's easier now that you've probably had that same helpless 'how am i going to pay this off?' feeling.

Since then I bought a house and my debt is over $300k...but at least i can write most of it off...and i have a place to live that's already appreciated in value about 35% in 2 years

cheers!
~K

loudnlive · #10 10-19-2005, 10:26 PM

It's a great feeling, isn't it? Gratz!

ScottB · #11 10-20-2005, 01:52 AM

Thanks for the congrats. My existing mortgage was already paid down below $80K. ($99K loan back in '93) Even when money was short, I never once missed or made a late payment on my home loans. The balances from the 2nd note, truck loan, credit cards, medical bills and a little bit of cash back only brings the principle of the new mortgage to around $130K.

The housing boom has raised property values so high that my home is now appraised at nearly $280K. I still have over 150K in appraised equity available as of today. Even when the market eventually corrects itself and prices drop, I should still be sitting pretty well above board.

I'm also budgeting enough to allow additional money to go toward the principal each month, in order to decrease the 15 year term to 10 years. Hopefully, I'll have it done before I turn 55 in June of 2016. I'd much rather be planning exotic vacations for the wife and I as we look toward retirement instead of still having to pay the mortgage when I'm 60.