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, December 28, 2008

Monthly Summary: December 2008

December was a great month for killing the mortgage. We were able to make a very nice extra payment of $5,000. Two factors worked in our favor. First, my wife receives a paycheck every two weeks, and due to the luck of the calendar, she was paid three times in December. Second, I was fortunate enough to get an end-of-year bonus at work. I wasn't sure if bonuses would be available this year, so I was thrilled to learn that I earned one. I feel very fortunate that both of us are still employed and earning a decent income at a time when the news is filled with stories of job cuts and economic hardship.

The December payment was the 32nd of 180 scheduled payments on our 15-year mortgage, and the 12th since we set our five-year goal at this time last year.

We started December with a balance of $153,995.28. By adding $5,000 to our regular monthly payment, we reduced the principal by $5,951.49. This brought the outstanding debt to $148,043.79 at month's end.

We are $31,679 ahead of where we would be if we'd never made any extra payments against our mortgage. If we abandoned this project now, we would still be able to retire the loan two years and 11 months ahead of schedule.

We saved $132.73 in interest last month, which brings our total interest savings to $879.34 since the start of the project.

Because we exceeded the average payment from last month, the new average monthly principal amount required to pay off the debt within our goal period fell to $3,084.25.

Although I plan to expand on this in a separate entry, I'm pleased to report that the December payment allowed us to exceed our first-year goal! Hooray!


Money Minder said...

Congratulations on your success! You two are an inspiration!

Daizy said...

That is great news! Just goes to show you what you can accomplish when you stick with it. Good luck with the new year.