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

Tuesday, June 17, 2008

Time = Money

Our summer income is going to be a little unpredictable, so I've run several possible scenarios for the next few months through my hypothetical model of our mortgage amortization schedule. I've noticed a pretty consistent relationship between extra principal payment amounts and the length of time until our mortgage is paid in full. Right now, each additional $1,000 we pay to principal translates into one month that we won't have to make a mortgage payment in the future. We've felt the desire to spend recently, as we're going on vacation at the end of the month (and we're tempted to stock up on new camping equipment). The recognition that a new $250 pair of boots represents one more week of future debt payments is helping me stay focused and committed to our goal: premature mortgage death.

3 comments:

Move To Portugal said...

That's exactly how I look at things.
Money not spent = Earlier settlement

You're doing really well!
-Laura

change is a good thing said...

I love your site!! I have added it to my blogroll. I look forward to seeing your progess too. I love the idea of paying off the mortgage early and leading a freer lifestyle. What amazing possibilities can open up to you when you aren't saddled with mortgage debt. :)

The Executioner said...

Thanks to both of you. Your encouragement is appreciated!