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

Monday, January 31, 2011

Monthly Summary: January 2011

Compared to a year ago, this January has been very snowy in New England. I have hardly been able to ride my bicycle at all, because the snow piles on the side of the roads are intruding into the bicycle lanes, forcing me to ride in the same area as cars. As much as I enjoy riding (even in the winter), I've had to put the cycling on hold for my own safety (more because I fear drivers won't be able to avoid hitting me on the narrow, icy roads than for any other reason).

We made good progress on mortgage killing this month. My wife's new job (as of last October) comes with a higher salary, so we've had more cash to allocate to the debt (I'm definitely not complaining about this).

Our January payment was the 23rd of 120 scheduled payments on our ten-year loan, and the 37th payment since we began the project a little over three years ago.

We began 2011 with a balance of $58,121.17. We scraped together $4,000 to include with our required monthly payment, which in total reduced the debt to $52,802.39 by the end of January.

We realized $260.53 in interest savings this month, bringing our running total to $3,896.52 since the beginning of the project.

Our mortgage balance is now $71,859 less than it would be if we had never made any prepayments on the loan. Because of our prepayments to date, we're guaranteed to pay off the mortgage 5 years early (on a ten-year note) even if we never make another extra payment from this point forward. That's right...we cut the term in half in under two years.

We have 23 months left in our five-year goal period (but only eleven months considering our revised goal to rid ourselves of this mortgage in calendar year 2011). We must average $2,295.76 per month in principal reduction to pay off the loan within our original goal, or $4,800.22 per month to meet our revised 2011 goal.

These next few months are going to try my patience. Now that I can see the light at the end of the tunnel, I'm tempted to take all of our free cash and dump it on the loan to get rid of it once and for all. But for now, at least, we are sticking to our plan. Hopefully we'll be able to meet our updated goal and be done with mortgage payments by the end of this year.

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