I made my last 438 k mortgage payment just now. My bank doesn't seem happy.

Quote from Calculator2:

So I make my last payment and bank that never made a mistake on how much I owe them suddenly starts making mistakes on last few payments. (mistake to their benefit)

I was always polite and patient in correcting these mistakes no matter how long I have to be on the phone. Because I knew I was gonna pay it off soon and wouldn't let it bother me.

Not even a congratulations on my last payment. Not even Thank you It was a pleasure doing business with you for the last 8 years.

Why do I get the feeling that my bank doesn't like people that pay mortgage on time and over the set payment whenever possible. I get the feeling they would be more polite to a deadbeat.
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You know what else i like? When you find out exactly how much you owe, send a check, then they tell you that you owe more in interest because they didnt cash and process the check for 15 or 20 days.
 
Quote from Calculator2:

I have a serious problem with advice to common mom and pops to Gamble in the market.

Banks replaced word "gamble" with "invest".

I as a trader know full well just how inadequate this advice is for average person.
Thanks for explaining it in detail. Telling people to not pay off mortgage and invest/gamble into mutual funds is a predatory advice.
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I like this comment.

The 'market portfolio' (probably the most accepted form of stock 'investing' versus 'gambling' out there) is still a bet: that GDP growth continues and monetary aggregates likewise continue to increase. Just a glorified form of hopeful trend following (ie 1982-2000).
 
i've met enough people who believe in debt-free living to determine they tend to be financially unsavy. they don't know how to safely invest debt that's 4% and make 6-8% from it. the savvy ones do know how, and so they won't pay off low-interest debt.

as for me being clueless, i've invested my mortgage since its inception and have made MORE than the payoff balance, and it's safely socked away. so there is no way the bank can take my house because i can pay it off at my choosing. without know your financial details calculator2, i can say with 100% certainty that i'd rather be in my shoes than yours
 
Quote from blackjack007:

i've met enough people who believe in debt-free living to determine they tend to be financially unsavy. they don't know how to safely invest debt that's 4% and make 6-8% from it. the savvy ones do know how, and so they won't pay off low-interest debt.

as for me being clueless, i've invested my mortgage since its inception and have made MORE than the payoff balance, and it's safely socked away. so there is no way the bank can take my house because i can pay it off at my choosing. without know your financial details calculator2, i can say with 100% certainty that i'd rather be in my shoes than yours
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+1
 
Quote from Calculator2:

Citibank :mad:

I could be wrong. Maybe the new business model is to be "robots".

Maybe they teach these new managers "be a robot". The new way of business, be a robot
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My mortgage (of $684k) was with Citi. I paid it off and they said "congratulations" many times. Each time I called (to get tax documents, etc).
 
Quote from DrPepper:

Thanks, but my home is paid off and it is staying that way.

Actually, I heard a financial columnist talk about a way to pay your house off quickly using a HELOC. Basically, you take out a HELOC, deposit your paycheck every week into it and pay all of your bills out of it. Keeping a higher balance in it from your paycheck (assuming you don't live paycheck to paycheck and normally have a decent balance in your checking account) decreases the interest you pay and can lead to you paying off your mortgage in seven years or so instead of thirty.

I didn't listen to the details at the time because I was getting ready to pay my house. But maybe someone else knows exactly how it works.
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That method is no good. The premise is that borrowers finance a new property or refinance existing property using a HELOC and you direct deposit your entire paychecks into it. But mortgage interest is frontend loaded.

Monthly expenses, other than mortgage payments, are funded by draws against the line of credit, Even if you don't wind up making additional principal payments in a month, you still capture some interest savings because your average balance is less than it would have been with a conventional loan but this was all back when interest rates were higher.

This method was sold as a kind of a form of arbitrage but in order for you to be able to pay it off quickly, Every penny of your "discretionary income" is applied to loan paydown. All you got to do is just send extra principal payments.

Ultimately it all about managing your money and living frugal so you can pay off your house faster. Just like any business, its all about cashflow.
 
Quote from blackjack007:

i've met enough people who believe in debt-free living to determine they tend to be financially unsavy. they don't know how to safely invest debt that's 4% and make 6-8% from it. the savvy ones do know how, and so they won't pay off low-interest debt.

as for me being clueless, i've invested my mortgage since its inception and have made MORE than the payoff balance, and it's safely socked away. so there is no way the bank can take my house because i can pay it off at my choosing. without know your financial details calculator2, i can say with 100% certainty that i'd rather be in my shoes than yours
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Mortgage, lets say 5% vs Risk free 1.0%

It is smarter to pay the 5% mortgage off which is a risk free 5% return vs a not risk free 6%
 
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