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

Saturday, July 31, 2010

Monthly Summary: July 2010

This summer has been a busy time for my wife. As I mentioned in last month's progress report, she is once again away on a business trip. She's picked up a lot of extra work this summer, earning some much-appreciated additional income which we will be dropping on the mortgage over the next couple of months. I'm excited about the potential progress we can make during the remainder of this calendar year.

Something unexpected happened in July. My grandparents' house finally sold after being on the market for over a year following my grandfather's death. My dad told me that it had been Granddad's wish to leave something behind for his children and grandchildren, so my wife and I became the grateful recipients of some money. My parents advised us to "spend it mindfully". Since both of my grandparents were frugal, and Granddad in particular had an aversion to mortgage debt, my wife and I couldn't think of a better use for the money than to give our own journey to mortgage freedom an extra boost.

Granddad and Granny, I appreciate this final gift, on top a lifetime which was already full of kindness and generosity from both of you. Granny, I'm sorry you never got a chance to meet my wonderful wife; I think the two of you would have gotten along very well.

***

The July mortgage payment was the 17th of 120 scheduled payments on our ten-year mortgage, and the 31st since we began this project at the start of 2008.

The balance was $89,641.99 at the beginning of the month. By adding my grandparents' gift to some of our own funds, we were able to make an extra payment of $6,500, which when combined with our required payment amount reduced the balance to $81,944.70 at month's end.

We realized $163.19 interest savings in July to bring the total actual interest saved to date to $2,543.06.

Our ten-year mortgage is now $49,005 lower than it would be had we never made any extra principal payments. If we stopped making extra payments now, our work so far would allow us to pay off the mortgage three years and seven months early.

We have twenty-nine months left in the sixty-month goal period. To reach our goal, we have to average $2,825.65 in principal payments per month. We're getting excited about our ability to reduce this number even further in the near future. This project is gaining momentum in the second half.