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

Thursday, September 30, 2010

Monthly Summary: September 2010

September was an exciting month for my wife and me, especially within the context of paying down our mortgage.

First, my wife accepted a new job offer. She has been doing contract work over the past three summers with an organization whose mission she very much believes in. An opportunity to move from contract to full-time presented itself in September, and she jumped at the chance. It's great that she will be working in a role which she will find more challenging and fulfilling. As an added bonus, her new salary will slightly exceed her total earnings from each of the past several years (which includes her former salary plus the extra compensation she made by contracting with her new employer). This means potentially more money for us to use to pay down the mortgage and save for our future. It also means my wife can focus on a single set of professional responsibilities instead of juggling two jobs during the summer months.

Second, we received a large portion of my wife's contract pay in late August and September, which allowed us to make a significant extra payment toward the mortgage in September. After tallying up our progress, I see that we have now exceeded the goal we set for ourselves in 2010 after just nine months.

We made the 19th of 120 scheduled monthly payments on our ten-year mortgage in September, which was also the 33rd payment since we began the DTM project in January 2008.

The balance was $77,717.74 at the beginning of September. We made our highest-ever extra contribution to principal, adding $7,000 to our regular payment, which reduced the debt to $69,474.49 at month's end.

We realized $201.16 in interest savings in September for a total of $2,993.09 in realized savings since the beginning of the project.

The ten-year mortgage balance is $59,395 lower than it would have been if we had never made any extra principal payments. If we ceased prepayments at this point, we would still retire the debt four years and three months early.

Twenty-seven months are left in the five-year (sixty-month) goal period. We must average $2,573.13 in principal payments to reach the goal within the five-year window.

I expect we will make more modest progress throughout the rest of the fall season, but it feels good to already find ourselves ahead of our 2010 twelve-month goal after only nine months. Once my wife's new pay starts coming in, I'll have to re-run our future numbers so I can get a better handle on how much progress we'll be able to make by the end of this year and in 2011.