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

Monday, March 2, 2009

Monthly Summary: February 2009

This summary won't be in the same format as prior entries because we are currently transitioning between two loans.

We paid a total of $725.06 interest to the two lenders in February, but we did not pay down any principal. In fact, the balance of the new loan is greater than the old mortgage. This is because (1) the new lender based the loan preparation documents on an old mortgage statement, and (2) the closing costs
($1,700) for the new mortgage ended up being included in the overall loan amount. Neither of these was what I wanted, but in the end it was convenient because we didn't have to come up with certified funds for closing. I'll just make a large payment in March on the new mortgage to cover two months of extra principal contributions. We'll pay a little more interest next month than we would have otherwise, but I can live with it, especially given the benefit we'll receive from interest savings in the long term due to the lower rate.

At the close of our original mortgage, our balance was around $145,062. If we hadn't made extra payments to the principal, we'd be sitting on a debt of over $178,900. Because of this, our cumulative interest savings since December 2007 were over $1,000. That's real money.

We still have 46 months left to meet our original five-year goal. We'll need to pay an average of $3,217.39 each month to meet that challenge. This number rose substantially this month, but will drop back down again after the March payment is complete.


escape said...

Good work. What will you do after you have paid off the mortgage - I mean will you go travelling etc?

The Executioner said...

My wife and I have a few ideas in mind, but have decided not to look too far ahead just yet. We want to tackle this project first. However, our general plan is to do something to celebrate immediately after the loan is paid, then continue to build up our savings so that we can prepare for the next stage of our lives together.