Yippeee, I did it!

[lastlib]

Wrote the check. Filled out the slip. Stuffed 'em in the envelope. Put it in the mail.
When it's processed, my car will be PAID OFF!! HOOO-RAYYY!
Such a wonderful feeling! And I saved over $11,000 in interest paying a 6-year loan in under 9 months!

And tRump is on trial--what a great day! Hope everyone else is doing well!

[underpants]

1. Congratulations

[LakeArenal]

2. Thanks for sending out good vibes!!🤗

[spooky3]

3. That's the way to do it! Nt

[GreenWave]

4. Whoa! What a great feeling. Soon they will beg you to get back in debt!

[lastlib]

17. Not to worry about that.....

I have to buy a house pretty soon. And part of that $11K I saved is going to go to buying me a new computer, software, etc.

[Niagara]

5. Congratulations, lastlib!

[Different Drummer]

6. Congrats!

[SWBTATTReg]

7. Good for you. Nothing like having a major expense like this off your shoulders. Congrats!

[Warpy]

8. It's always a great day

when you get some creditor's hand out of your pocket. Debt sucks.

[lastlib]

18. Amen! I hate buying dead horses.

My grandfather told me years ago that paying interest or rent to somebody is like buying a dead horse--you get nothing to show for it. I have taken that to heart, and I've paid off every loan I've ever had within a year.

[Warpy]

22. I paid off the morgage on my house as soon as I inherited the money to do it

My dad's financial guy was shocked, I was giving up the mortgage interest deduction. I said I was ten years in, and while the deduction had been helpful in the first five years and when I was poor, it was ten cents on the dollar of interest paid. So by buying the house, I was paying myself that interest, instead.

Some people are so focused on lowering their taxes, they screw themselves over by sending cash they don't need to send to a bank. I lowered my mothly cost of living and my Spartan budget became quite lush.

I toyed with the idea of refinancing a 15 year fixed, which is what I'd wanted in the beginning but couldn't afford, but it made a lot more sense to get the bank's hand out of my pocket.

[lastlib]

25. Good strategy, Warpy! The tax benefits of a mortgage are greatly over-rated, IMHO.

Yes, in the early years, it may be somewhat beneficial, but over the long-term, it's way better to reduce the interest you're paying out. That's why I'm keen on paying as much principal as possible early on, and draw the interest down faster. You can easily calculate the amount of principal you have to pay in the first payments, and it's actually a fairly small chunk of your total payments because the interest is by far the bigger part. I was able to figure the amounts of the first eighteen months' principal payments; and almost before the ink was dry on the loan papers, I paid that amount to the lender--practically interest-free. It saved me almost $6,000 in interest.

[Warpy]

29. Good strategy for most people

I just paid the standard PITI because I needed to save as much as possible so I could get by when the bottom fell out again, and it always did, such is the way of autoimmune disease. I bought the place as a hedge against rising rent and it took a little over 2 years for the rent to catch up. It was my own strategy and it worked for me.

[twodogsbarking]

36. You understand. If you pay $10k in interest and your total itemized deductions are only $3k higher than

the standard deduction then the benefit is $3k not $10k. In the 22% bracket you save $660 not $2200.
If you can't itemize there is no benefit. Seems simple but many don't understand.

[twodogsbarking]

34. The mortgage interest deduction is way over valued. It is a selling tool.

[Warpy]

38. Not in my case

I know about amortization and how for the first 5 years, interest is about all you're paying. During those 5 years, the lump sum at tax time allowed me to make some improvements on the place my savings for the year didn't quite cover. Don't discount that lump sum once a year for people who are house poor, it's a definite boon. It just doesn't make sense for people who are well off enough to pay the damned thing off, either all at once or with higher monthly payments or biweekly payments.

As a savings strategy, slowly paying the loan for the once a year windfall sucks. As the difference between increasing the property value for people who are cash strapped, it is a definite benefit. That's why there is a howl of protest every time the fucking Republicans try to do away with it---too many people need it.

When it started, it wasn't so much a selling point as it was a way to get people used to renegotiating balloon mortgages every 5 years in order to stay in their homes to sign up for 30 years of debt. It was a way of ensuring population stability and allowing retired people to stay in their homes, presumably paid off by the time they hit 65. It worked well until the neoliberals fucked it up.

[orleans]

9. thanks for your news that put a smile on my face

i'm so happy for you
congratulations

[LoisB]

10. Congratulations!!!

[irisblue]

11. 👏👏👏👏

[elleng]

12. Great news!

I'm about to initiate transaction to purchase my lease, so may know soon when I'll own it.

[AllaN01Bear]

13. yay. ding. ding .ding. now go get yourself a hot fudge sunday and celebrate:)

a wise friend once said " if u have a significant victory, and this is one , go celebrate by haveing a hot fudge sunday" if u do. please take your time and enjoy it.

[Dem2theMax]

14. Congrats!

I've done that too. It is the BEST feeling!
Now take a little bit of that savings and go celebrate!

[sdfernando]

15. Congrats!

Its a great feeling not to have a car payment.

[dai13sy]

16. This is the wonderful kind of day

That makes you glad to be alive. I am beyond amazed that you could do that in such a short time and save so much money - mindblowing As another human trying to make it on the road of life - Congratulations

[lastlib]

19. Good luck to you on your road!

We're all traveling with you in spirit!

[catrose]

20. Congrats! Great feeling

[debm55]

21. Thank you, lastlib.

[niyad]

23. Congratulations!!! So very happy for you!

[ailsagirl]

24. Congratulations!! Isn't that a great feeling??

[magicarpet]

26. Very good,... with a little bit of discipline and financial planning,...

.... you can make that disposable income stretch so much further.

Good luck buying your own place not too far down the road.

[badhair77]

27. Congrats!

It’s great to hear good news!

[calimary]

28. Congrats!!!

Sure sounds like a great day to me! Sounds like you checked off everything on the ol' checklist. GREAT job!

[keithbvadu2]

30. Car payment gone... good feeling.

[democrank]

31. Fantastic!

Enjoy your new freedom

[sab390]

32. Great

Now park it and get on the bus. Make it the last car you ever buy. Your car is to get you out of the city on the weekend not into the city during the week. Hate to be a downer with such good news but time marches on.

[lastlib]

33. I live in a rural place, Midwest, so....

can't take a bus much. But then, I barely drive much anyway. More than 2 tanks of gas in a month is pretty rare. I'm retired, so the car is parked most days.

[electric_blue68]

35. Great news!

[twodogsbarking]

37. Wash and wax that baby and drive happy.