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Mortgage Milestone

November 23rd, 2011 at 03:38 am

The December 2011 mortgage payment will be a "milestone" in my grand plan to pay off the mortgage in 8 years or less, so that means 7 years remaining on a mortgage that was closed on 11/15/2010.

I created a spread sheet in Microsoft Excel that mimics the amortization table we received at closing, but added an additional column for "additional principal". I initially checked to make sure the functions I created jived with any random payment number to the original amortization schedule received at closing. I checked the interest, principal and balance and all were spot on. This spread sheet allows me to adjust any "additional principal" amount any time during the loan to see the effects on the duration and balance at any given time.

The plan I have set up is:

2011 - Additional $350 Dec only
2012 - Additional $350/ mo. w/ Dec 2012 $5,350
2013 - Additional $450/ mo. w/ Dec 2013 $10,450
2014 - Additional $550/ mo. w/ Dec 2014 $10,550
2015 - Additional $650/ mo. w/ Dec 2015 $10,650
2016 - Additional $750/ mo. w/ Dec 2016 $10,750
2017 - Additional $850/ mo. w/ Dec 2017 $10,850
2018 - Additional $950/ mo. w/ Dec 2018 $25,000

We will see how close to the dream we come...

7 Responses to “Mortgage Milestone”

  1. Beawealthywarrior Says:
    1322020319

    That's awesome, I'm working to pay mine off early as well. I like how u have added an extra $100 every year. Would u mind sharing your spreadsheet? I can send u may email address. Thanks!

  2. Shiela Says:
    1322021748

    I have a similar excel spreadsheet, it keeps me motivated. I love seeing the mortgage debt keeps going down every month.

  3. NJDebbie Says:
    1322059354

    I'm (we're) also trying to pay off our mortgage in 7 years. We've actually shorten the life of our mortgage one whole year already. We made the first refi payment on January of 2011 and we have 13 years left instead of 14. Good luck on your mortgage paydown!

  4. creditcardfree Says:
    1322061599

    Welcome to SA! Good luck with your mortgage paydown. Sounds like an excellent plan.

  5. Petunia 100 Says:
    1322066348

    Hello and welcome. I have a similar spreadsheet I use which recalculates each time I pay any additional principal. I love the visual of how each tiny prepayment impacts the end of my mortgage.

    I don't understand your schedule. Is the last number on each line (such as Dec 2012 $5,350) a lump sum payment at the end of the year? Thanks!

  6. Xtreme Thunder Says:
    1322069039

    Thanks all for the welcomes!

    Beawealthywarrior: Yes, I can certainly do that for you.

    Petunia 100: Yes, the December payments are still additional principal only payments, but 2012 case is $5,350 instead of only $350 additional and so on.

  7. snafu Says:
    1322244193

    We knocked several years off our mortgage by making two payments per month, one on 1st, 2nd on 15th. The date changed the amortization schedule

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