Progress to Date

  • Original Loan Amount: $204,000.00
  • Balance at Beginning of 5-year Goal (1/1/08): $188,983.82 @ 6.00%
  • Balance at Refinance in February 2009: $148,000.00 @ 4.625%
  • Outstanding Balance: $0.00 (PAID IN FULL!!!)
  • Latest Payment Date: April 2011
  • Latest Additional Principal Amount: $17,623.22
  • Amount Ahead of Schedule (since refinance): $121,462
  • Time Ahead of Schedule (since refinance): 7 years 10 months
  • Interest Saved Last Month: $23,972.48
  • Total Interest Saved: $28,435.55 ($1,037.74 on original mortgage; $27,397.81 on current mortgage)
  • Months Remaining in 5-year Goal: 20
  • Average Monthly Principal Needed to Meet Goal: N/A (Goal achieved)
  • Progress List Explained

Sunday, May 11, 2008

A Little Extra

Last week my wife received a modest pay raise at work. Although the timing was something of a surprise, we had been expecting the raise to happen at some point in the spring or summer. The raise was retroactive, so in addition to seeing a little extra in each paycheck, she also got a lump-sum payment last week to cover the months that have already elapsed since the effective date of the pay increase.

Because we didn't know when the raise would occur, I had never budgeted for it. The retroactive income will help us get back on track with our mortgage prepayment plan (not that we were all that far behind anyway).

This month we also benefited from a decrease in our auto insurance premium. The monthly payment going forward will be about $25 less than it was before. Add my wife's additional salary to that, and we'll net an extra $175 or so per month. While that's not a huge amount, it's certainly better than seeing $175 added to our monthly expenses.

On top of all of that, we have been using less gasoline since spring arrived, further cutting our expenses. Even though the cost of gasoline is much higher now than it was a year ago, we spent 47% less on gasoline in April 2008 than we did in April 2007. How did we manage to do that? I've used my bicycle to get to work almost every day since the last week of March, and my wife has commuted by bicycle regularly as well (several days per week). We're now living the lifestyle of a one-car family. Our second car is cleaned and parked in our garage, awaiting its sale. It is only a matter of time before we find the right buyer, and we can be rid of the costs associated with owning a second vehicle.

Our April mortgage payment went through last week, along with an additional principal amount of $2000. I won't know whether the additional principal was applied to April or May until I get the next statement from the lender. I'll post the April summary once I learn the answer to that question. For now, I've updated the Progress to Date section assuming the principal was applied to April.


Ashley said...

That's cool that you and your wife not only have some extra income now, but also managed to cut spending too. You have a lot of motivation, which is admirable.

And no, I don't have any credit card debt. :) That's something I'm pretty proud of, that I always pay my bill in full.

The Executioner said...

Nice work on staying clear of the credit card debt. Staying motivated is a challenge for us; this blog helps with that. From time to time we slip up and spend more than we should. It's a work in progress...