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

Wednesday, April 1, 2009

Monthly Summary: March 2009

In March we made the first payment on our new 10-year loan.

Because of the refinance we did not have to make a February mortgage payment. As a result, we were able to add $6,500 additional principal to this month's normal payment, for a total principal reduction of $7,472.37. While this number looks impressive (to me, anyway), it is misleading for a couple of reasons. First, as I explained previously, the amount financed in the 10-year loan was greater than we actually needed, which meant we received a cash payment from the new lender. Part of the $6,500 amount was the surplus cash being returned to the loan. Second, we didn't make an additional principal payment in February, so we saved up the extra cash we would have applied to the loan last month, and tacked it onto this month's check.

We haven't yet realized any explicit interest savings on the new mortgage, though implicitly we saved interest because the new loan has a lower rate than the old one did.

Because of the prepayment we've shortened the term of the new loan by six months.

We have 45 months remaining in our original 5-year goal period, and must contribute an average of $3,122.87 each month to the balance to achieve that goal.

Our net change from the end of January to the end of March was a debt reduction of $4,534.91. This is an average of around $2,267 per month. This is lower than usual for us, but the cost of refinancing made the difference. I hope we make this up by the end of 2009, and start benefiting in 2010 and beyond.

April is going to be a challenging month financially, but I remain cautiously optimistic because of our plans for the rest of the year.

3 comments:

lowincomelady said...

I have been reading your blog for a few months now. I am paying off a mortgage too and I love reading about other people who are doing the same.

Keep up the good work!

The Executioner said...

Thanks! I looked at your blog. I like the NCN link and may use it as well, since it would match nicely with our plan. Good luck to you on achieving your own goal.

Laura @ move to portugal said...

I remember when we refinanced it messed us up for a bit, but at least you've started on the overpayments again.

Good progress in March :)