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, August 15, 2012
After going a full year without an entry, I think it's time to officially close the book on this blog.
Before I sign off, here are a few final comments, in no particular order.
First, not having a monthly house payment is a great thing. I highly recommend it. After paying rent for seven or eight years and then making mortgage payments for almost a decade, I can say without hesitation that I would much rather live with no rent and no mortgage than under any other scenario. Our largest monthly expense now is Savings, followed by Food.
I don't regret for a second that we chose to pay off the mortgage instead of funneling our extra "mortgage-killing" cash into investments. We spent just over three years aggressively paying down our mortgage. Now that it's gone, we have a lot of extra cash in the monthly budget to use for saving and investing. And that's what we are currently doing. I can live with the hypothetical "lost opportunity" of not being invested in stocks (or bonds or whatever) during those 40 months. It's much better to see that our long-term liabilities are $0.
Since April 2011, we've grown our savings by more than $60,000. We also fully funded our IRAs using another $10,000 ($5,000 each) and bought a new (used) car -- paid with cash. This is evidence of the increased cash flow that comes from two full-time incomes and no mortgage payment.
We've mostly retained our more-frugal habits that we picked up when we began the mortgage-killing project. On the occasions that we do splurge, we don't feel like we're destroying the monthly budget because we're currently saving more than 50% of our take-home pay.
We are truly homeowners. We are not home-borrowers. We are Home Owners. And we earned that title.
So what's next? I admit, it was tough to get a new focus once the debt was paid. We began dumping money into savings without any clear plan of attack. It took about a year of living in the new mode before we started seriously discussing our next move. But I'm not going to go into detail here. I'll be continuing the journey on a new blog. Perhaps you will join me there.
Posted by The Executioner at 9:19 PM