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Mortgage Mini Milestone

April 3rd, 2014 at 05:03 am

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.

7 Responses to “Mortgage Mini Milestone”

  1. just a thought Says:

    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:

    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:

    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:

    Every little bit helps!

  5. snafu Says:

    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:

    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:

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

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