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Mortgage Mini Milestone

April 3rd, 2014 at 12:03 pm

I call is mini because it only changes the thousands digit. We are below $167K!

I have been adding at least $100 each month to principal so far this year as to meet one of our financial goals, which was at least $50 additional/ month.

The $100 allows the thousands digit to change every 3 months instead of every 4, so we knock a month off the entire length of loan (if we were to keep it) every 3 months given it's current location in the amortization schedule.

Posted in Personal Finance, Mortgage | 7 Comments »

7 Responses to “Mortgage Mini Milestone”

  1. just a thought Says:
    April 3rd, 2014 at 12:09 pm 1396526942
    1396526942

    If it were me, I might think about putting that extra $100 a month into retirement accounts instead of at the mortgage. The more $$$ you can put away in retirement now, the better off you'll be down the road. I understand that you want to pay off your mortgage early, but I think beefing up your retirement accounts should be more of a priority right now. Just my thoughts!

  2. creditcardfree Says:
    April 3rd, 2014 at 12:59 pm 1396529999
    1396529999

    Awesome!
    just a thought's comment isn't wrong. It is a personal choice, if I remember, to get your mortgage down to a point to cancel your escrow account.

  3. Mooshocker Says:
    April 3rd, 2014 at 01:07 pm 1396530424
    1396530424

    Truly a GREAT situation to have to contemplate! Great job! My advice, for what it's worth.......split the difference....50/50......kill to birds with one stone!

  4. beawealthywarrior Says:
    April 3rd, 2014 at 01:30 pm 1396531824
    1396531824

    Every little bit helps!

  5. snafu Says:
    April 3rd, 2014 at 05:38 pm 1396546708
    1396546708

    Kudos, I think it's brilliant because of the way mortgage amotorization works. You are saving a ton of interest by paying directly to principal. It also increases your equity in your home should you wish to sell sometime in the future. Lastly, the freedom you feel being mortgage free gives you options galore.
    * I'm presuming you're not foregoing any matching retirement money from your employer.

  6. Xtreme Thunder Says:
    April 3rd, 2014 at 11:04 pm 1396566288
    1396566288

    I have contemplated our decision in extensively. I contribute just over 6.5% total to retirement accounts, including my NYS Retirement, which I will be fully vested in 2016, which then I will send those dollars to Vanguard. DW, with new job will send 9% total, between Vanguard and her job. We will set her job one for 6%, and if she stays there more than 2 years, the employer will match up to 6%, so potentially 15% for her by 2016.

    Mortgage is 3 fold, better equity, can self escrow when loan under 20/80, and discontinue PMI. FHA = worst product ever! We will never do such ever again, and does not make sense to refinance.

    Also, funds are being sent to a 6 month emergency fund.

    Definitely about balance! Thanks all for comments/ suggestions!

  7. just a thought Says:
    April 3rd, 2014 at 11:51 pm 1396569082
    1396569082

    Ah, I didn't realize you had less than 20% equity in your home. Your plan makes sense!

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