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, August 30, 2009

Monthly Summary: August 2009 (One Third Complete)

It's hard for me to believe that August is almost over. In many ways 2009 still seems fresh and new. My wife and I just returned from a week-long trip to Yellowstone National Park. Originally we had planned on a vacation closer to home, hiking along the Cohos Trail here in New Hampshire for a week. However, earlier this summer we received an invitation to go to Yellowstone with another couple who had already made arrangements to stay there, so by splitting the cost of lodging, groceries, car rental, etc, we were able to have a bit more adventure without increasing our vacation budget too much. We'll save the Cohos trail hike for another year.

Meanwhile, my wife recently finished her summer contract work and was very pleased with it. There is a good chance she may eventually be able to build on this this experience and gain full-time employment with the organization, which would interest her very much; however, a transition to that line of work would probably not happen for another few years. The good news for us is that she added to our income, which means extra money for mortgage prepayments; the (mildly) bad news is that due to the pay schedule, we won't have the money available until it's time to make September's mortgage payment.

We made the sixth of 120 scheduled payments on our ten-year mortgage in August, which represented the 20th payment since we set our five-year payoff goal in December 2008.

At the start of August our balance was $127,463.07. We added a modest $500 to the principal when sending in our regular monthly payment, which dropped the outstanding loan amount to $125,911.54.

We saved $60.27 interest this month. Total interest saved on our 10-year mortgage is now $197.72, and total interest saved since beginning our project is $1,235.46. This number is starting to become substantial.

We are now $16,198 ahead of schedule on the current mortgage, and remain on track to retire the loan one year and three months early if we stop making prepayments at this point.

We have 40 months remaining in our original 60-month goal period, which means we are now one-third of the way through the project. The original balance at month zero was $188,983.82, and after this month's payment we have reduced the principal by $63,072.28, which is 33.37%, or almost exactly one third of the initial amount. In other words,
our progress is right on track! Upon setting the goal, I wasn't sure how long we could continue to find extra money in the budget, but now that a significant milestone has been reached, I am confident that (barring major, unexpected lifestyle changes) we can continue to make steady progress toward ultimately "killing" the mortgage no later than December 2012.

At the start of the goal period, we had to average monthly principal payments of $3,149.74 to finish in 60 months. We currently need to average $3,147.79. Since the principal portion of our regular payment is much larger now (around $1,050) than it was back in December 2007 (about $775), we're benefiting from the additional principal payments we made over the past 20 months. What a great feeling to know that the effort has paid off!

Keeping up with this blog (even as infrequently as I do) has been great motivation to stay focused on the goal. The dread of going into work each day is offset by the promise that one day in the near future, I will have more control over my schedule, free from this large monthly obligation and the need to drag myself into an office every day to pay for it.

3 comments:

RainyDaySaver said...

Wonderful progress! I was just telling my husband the other day that even a small additional monthly payment on the principal ($25) would allow us to pay off our mortgage about 18 months early and save us about $30,000 over the next 28 years. We're starting small, but I hope to increase the extra payments in the near future.

Dreamer said...

Executioner - congratulations, its so good to have a goal, it really helps with the motivation of going to work everyday, I also dread going to work but the bigger picture keeps me going!

Middle Way said...

Wonderful progress!

I like your description of dread and having to "drag yourself into an office everyday"... I can almost feel the weight of it!

If I had to rank my motivation for doing the same, that would be it.