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

Friday, July 24, 2009

A Debt-Free Lifestyle

Earlier this year I wrote about a friend who recently paid off his own mortgage. I saw him last week and asked him how he is enjoying his new debt-free lifestyle. Although he's only been without a mortgage payment for three months, he's already taken advantage of the situation. The amounts that would have been allocated to his old mortgage during June and July were instead used to pay for a new on-demand hot water heating system, which supplies water for his personal use as well as to the radiant heating system in his house (replacing his old boiler). This should gain him some energy efficiency and bring down his utility expense in the winter.

During the month of August, he is taking three weeks off, unpaid, to travel and visit family. His company allows its employees to voluntarily take unpaid time during their slow summer season (between Memorial Day and Labor Day). Most of them take a day or two here and there. He said there was a bit of jealousy when some of his co-workers found out that he was taking three full weeks. I have to admit, I'm a little jealous myself. But to that, I say: Pay off the debt, and enjoy the rewards of your hard work! We will be there someday too.

Thursday, July 2, 2009

Monthly Summary: June 2009

Our new refrigerator was delivered today. I hope it keeps our food nice and cold for many trouble-free years to come.

The June mortgage payment was the fourth of 120 scheduled payments on the 10-year mortgage, and the 18th payment overall since the beginning of our five-year goal period.

Our loan balance from last month was
$136,519.50. My wife is earning extra income this summer, so fortunately we were able to add $5,000 to our regular mortgage payment in June. This reduced the outstanding balance to $130,502.88.

We saved $32.96 interest in June, bringing the total interest savings over the four months of the new mortgage to $85.09. We're now $13,585 ahead of schedule on the balance, which means that we'd pay off the debt 13 months early even if we suddenly stopped making extra payments.

We have 42 months left in our five-year goal period. To achieve success, we'll need to average a total principal payment of $3,107.21 each month. This is lower than last month, and also lower than the average when we began this adventure in January 2008, which means we are once again ahead of schedule overall. However, expenses keep piling up this summer, so we can't afford to lose focus. We need to limit our spending for a while.

2009 is already halfway over! Time is flying. Enjoy the summer while it lasts!