Pisces paying off that mortgage plan!

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Pisces1305
Posts: 61
Joined: Tue Dec 17, 2013 5:59 pm
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Pisces paying off that mortgage plan!

Postby Pisces1305 » Mon Jan 23, 2017 12:39 pm

Hi All!

It's been a while since I posted! I think I last posted in Sept 2014 when we finally paid off that awful CC debt. A few big things have happened! Had a baby in 2015, sold our old home, and bought a new house in March 2016! We only put 5% down! :tmi: I know, I know, PMI....ugh! Paying for closing and other fees at both closings really dug into our savings. We had also planned to move in with my parents for 6 months so we could build cash but some disagreements led to that not happening. But all is well and now I'm here because having a little accountability from the GRS community while we paid off our CC was incredibly helpful that I feel having the same accountability will help us payoff that mortgage! So here we are with a 30 year mortgage at 4.125%. The goal is to have it paid off in 20 years at the longest. We'll be snowballing the mortgage. Slowly at first by building up to making an additional 1/12th of a payment per month, or $130. Then adding more to the snowball as we get raises, when the PMI drops, and when I return to work full time. The info:
Payment (P+I) = $1551.33

Balance as of 01/01/17: $315,977.64
Principal: $465.16
Additional P: $10
New balance: $315,502.48

Slow and steady!! ;)

Smurfette
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Joined: Wed Oct 19, 2016 10:26 am
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Re: Pisces paying off that mortgage plan!

Postby Smurfette » Tue Jan 24, 2017 3:00 pm

Wow! Well congratulations on your new home. It's good that you want to pay it off sooner rather than later. I'm not a financial expert and don't know your circumstances, but I will ask you to consider maximizing your retirement contributions BEFORE you pay off the mortgage debt. If you have a robust emergency fund, that would also be preferable to pre-paying your mortgage. This way you are covered through roof repairs, job loss or something major. Your interest rate is still very good, so I wouldn't rush paying it down if you haven't done these other things.

Hope this helps!

CecilyC
Posts: 450
Joined: Fri Jul 10, 2009 6:57 am
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Re: Pisces paying off that mortgage plan!

Postby CecilyC » Tue Jan 31, 2017 6:35 pm

Good luck! I can tell you that although the first little steps seem small, setting up the habit of pre-paying is even more important than the amount -- or at least that's the way it was for me. Seemed like a huge shift in thinking at first, even though the amount was not that big. Now, almost 8 years later, it's second nature. It would feel weird NOT paying off more every month!

Cheers,
CecilyC

Pisces1305
Posts: 61
Joined: Tue Dec 17, 2013 5:59 pm
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Re: Pisces paying off that mortgage plan!

Postby Pisces1305 » Fri Feb 24, 2017 10:25 am

Thank you everyone!
We have 2 months worth of bills saved up and continuing to grow as well as several sinking funds for various reoccurring annual and semi annual bills. We're both contributing to our employers' 401k, exceeding the company match. Each raise we add 2% more until we reach the annual max the IRS will allow. After that, I'm not sure what we'll do.
I like reading everyone else's journey. Keeps things in perspective that unexpected things happen even when you've best prepared for them. But with commitment and perseverance financial goals can be met. Seeing other people reach their goals motivates me!

In addition to working our way up to an additional 1/12th of a monthly payment, I also to decided to make a little game of it and add a little more each month to bring the balance down to the nearest tens (in other words, making sure the last dig is zero).

February 2017:
Principal: $466.79
Additional P: $20
Addnl for rounding: $5.96
New balance: $315,010

Pisces1305
Posts: 61
Joined: Tue Dec 17, 2013 5:59 pm
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Re: Pisces paying off that mortgage plan!

Postby Pisces1305 » Wed Mar 15, 2017 5:56 am

March 2017:
Principal: $468.49
Additional P: $30
Addnl for rounding: $11.51 (should have been $1.51 but I entered the additional amount wrong when processing our payment...oh well!)
New balance: $314,500

jdmartin
Posts: 225
Joined: Thu Aug 28, 2014 10:31 am
Location: Southeast US
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Re: Pisces paying off that mortgage plan!

Postby jdmartin » Wed Mar 15, 2017 6:29 am

HI Pisces, good luck on your journey!

Question: what area of the country do you live in?
"Money is better than poverty, for financial reasons" - Woody Allen

Pisces1305
Posts: 61
Joined: Tue Dec 17, 2013 5:59 pm
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Re: Pisces paying off that mortgage plan!

Postby Pisces1305 » Tue Apr 18, 2017 5:57 pm

Hi jdmartin!
Thank you! I'm very excited to have this plan. Slow and steady.... :) I live in the mid-west.

April 2017:
Principal: $470.24
Additional P: $40
Addnl for rounding: $9.76
New Balance: $313,980

jdmartin
Posts: 225
Joined: Thu Aug 28, 2014 10:31 am
Location: Southeast US
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Re: Pisces paying off that mortgage plan!

Postby jdmartin » Fri Apr 21, 2017 7:31 am

Nice job so far! $2k in a few months, nothing to sneeze at!
"Money is better than poverty, for financial reasons" - Woody Allen


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