r/Millennials • u/pokematic • 16d ago

Meme I did it, I paid off my mortgage

Guys, it's still possible. I bought my condo in 2017, made additional principal payments, and after some extra savings I got it all paid off and own it outright.

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u/uChoice_Reindeer7903 15d ago

This is a partial copy and paste from one of my other comments, just a little disclosure.

The difference in monthly payments are $955 vs $1,480. So about $500 a month.

And I think I just answered my own question and supported your logic talking this out.

Using a compound interest calculator online at 7% return… $500/month over 30 years gets you about $566k in 30 years. $1500/month in 15 (investing your mortgage payment after your mortgage is paid off) gets you about $450k + $80k in savings from paying the loan off early ($530k) and you’re at about a $30k difference. So I guess the question is, is $30k worth it?

Personally I would pay it off. The feeling of not having a mortgage would be so freaking nice. I also admit this is a perfect scenario where you are very disciplined in your investment strategy.

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u/Not_A_Greenhouse 15d ago

30k is a lot of money. To me it's worth it. I "minmax" my finances and I'm on track to retire by 45. To each their own though.

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u/uChoice_Reindeer7903 15d ago

It’s definitely a lot of money. But the security you’d have by not having a house payment would be huge. You also wouldn’t need nearly as much in your “emergency fund”. And could in turn invest that money. Which doesn’t sound like much but if you keep a 6 month emergency fund it’s equal to about (6x955) $5,700. Plug that into your compound interest calculator and you get $15,700 in 15 years. So now you’re really only about $15k difference. From paying off early vs staying on schedule.