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

Friday, May 23, 2008

Monthly Summary: April 2008

This "April" summary is over three weeks late, but (as I mentioned previously) I wanted to await the results of making our April payment during the grace period in May. I'm pleased to report that the Mortgage Professor was right; our lender credited the additional principal payment toward April's balance even though I made the payment during the first full week of May. This is not something we expect to do on a regular basis going forward (in fact, we've already scheduled our May payment for next week), but it's nice to know we have that option in case of a similar situation in the future.

The April payment was, by the way, the 24th of 180 scheduled payments on our 15-year mortgage.

At the beginning of April, the outstanding balance was $179,102.43. We made a $2,000 extra principal payment, which when added to the principal portion of our regular payment resulted in a total principal payment of $2,825.96. Our outstanding balance dropped to $176,276.47.

We're around $9,884 ahead of where we'd be if we'd never made any additional principal payments. If we ceased making extra payments at this point, we'd pay off the mortgage exactly one year early. This part really impresses me. We've been paying extra for about four months, and that extra principal only amounted to 4.8% of the original loan balance, but we've already taken a whole year off of our term thanks to future compounding interest savings.

We saved $39.23 in interest this month, for a total of $83.81 saved interest so far.

Our average monthly principal payment required to meet the five-year goal is now $3,147.79 (up slightly from last month).

May's payment will include the proceeds from our recent car sale. I am looking forward to wrapping up this month already!


ASHLEY said...

Wow that is really impressive that you've managed to shave a year off already! It really shows how much of what you're paying is interest on top of what your house actualy cost... which is a little scary.

In answer to your question- yes I try to pay myself first. It doesn't always work out that way (I used a little of the extra money to get a haircut instead of saving it...), but I try.

The Executioner said...

Thanks. A year is good, but to reach our goal, we have to shave 8 years total off the term. We have to stay motivated for a while longer...