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

Saturday, August 30, 2008

Good News

I sent the August mortgage payment to the lender earlier this week. After checking the interest amount they charged for August, I was able to determine that the $1,500 extra principal payment we sent during the first week of the month was in fact credited against July's balance, not August. This is good news for us because we get the benefit of one extra month of interest savings on the $1,500, which will continue to compound until the mortgage is paid off.

My latest guess is that any payment we send to the lender (whether a normal payment or an extra principal amount) which is received prior to the late date (the 15th of each month for us) gets applied to the prior month's balance. I'll continue to test this hypothesis going forward as conditions warrant.

I'll go back and update July numbers to include that extra principal amount in the near future. I'll also post our August summary by the end of this long holiday weekend.

Wednesday, August 20, 2008

Payday

It's been a quiet August around here. My wife recently received the final paycheck for her summer contract work. That puts us in great shape to make a decent payment to principal this month.

On a similar topic, both of us received raises over the summer. If we stick to our pre-raise budget (always a challenge) then the extra cash should help us keep the momentum going as we move into the autumn months.

Enough with the typing; now back to watching the Olympics!

Monday, August 4, 2008

One Week Too Late?

So, as I predicted in my previous entry, my wife's paycheck was in the mail today. She dropped it off at the bank this afternoon. I scheduled an extra principal payment of $1,500 to occur by the end of the week. I won't know whether the lender will apply it to the balance in July or August until we receive the August statement. And that won't happen until I send the standard payment for August (which probably won't happen until the last week of the month).

My prediction is that they will consider it part of our August payment, since we've already received the statement for July. But I'll be pleasantly surprised if they honor the 15-day grace period and credit it retroactively to the July balance. More to come on this in about a month.