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.

1 comment:

change is a good thing said...

That is really great news!! I look forward to seeing your updated totals. Nice work!