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, March 31, 2010

Monthly Summary: March 2010

Every year I have the same thought when the end of March rolls around. Although the year still seems new, a quarter of it is already in the history books. This has been an unusually warm and rainy March for New England...no snow to speak of, but ample rain over the last two and a half weeks. Luckily, we've been spared the flooding that is affecting other communities in the region.

We made the thirteenth of 120 scheduled payments on our ten-year mortgage in March, and the 27th overall since we set our five-year goal in January 2008.

At the start of the month, our balance was $101,291.80. Because of recent expenses (home repairs and taxes), we added only $500 to our regular mortgage payment. Still, this was enough for us to reduce the principal below $100K, as the end-of-month balance now stands at $99,639.41.

We realized $134.08 interest savings in March, bringing our total savings to $1,960.99 since the beginning of the project.

The loan balance is $35,423 lower than it would be had we never made any prior prepayments. We would still pay off the loan two years and eight months early if we stopped making extra principal payments.

Thirty-three months remain in our five-year goal period. We have to average $3,019.38 in total principal payments each month to meet our goal.

Although it feels great to break below the $100,000 mark, we still have a long way to go before we are completely mortgage-free. We are going to be conservative with our prepayments for the next few months because of the expensive start to 2010, which should allow us to rebuild our savings. There is also a little bit of uncertainty in both of our jobs right now (rumors of job cuts this spring). We have no specific reason for concern over either of our positions, but it's hard to predict the whims of employers. We are fortunate to still have two steady income streams when so many are without a reliable paycheck.

3 comments:

Middle Way said...

I really hope there will not be any work changes for you nor your wife.

Congrats on getting to 5 figures! What a great psychological boost.

Super summary post of your winter bike commute.

jaevst said...

Congrats on breaking through the 100K figure. It's an important pyschological barrier to pass. Keep up the good work.

RainyDaySaver said...

I agree with the other commenters -- getting down to five figures is a great psychological mark.

I hope both of your jobs are safe. Of course, this is where paying extra on your mortgage principal always miffs some personal finance folks. To play devil's advocate, what if you or your wife were to lose your job? Would you regret not putting that "extra" money into an interest-bearing account instead? I know I sometimes wrestle with that idea (not that we're at the point of being able to pay that much extra toward our mortgage yet).

Enjoy your spring!