Wednesday, October 8, 2008

Mortgage Progress for October

I've reached $55k!!! Ok, the balance is $55,507.57 but $55k is shorter. I paid an extra $1,400 towards my mortgage for October. I was going to add $200 more from the money I saved by buying grocery gift cards with my stimulus check and the $125 sign on bonus for opening a Chase checking account but since I haven't figured out what my next step will be, I decided to hold back a little.

Here are my current courses of action and the length of time until the mortgage is paid(I can only pick one):

1. Sell one acre for $50k, use $40k profit to pay off house. Length of time: 5 months
2. Move back in to my house after my short term renters leave in February. Put an extra $400 towards mortgage and move out one month a year to rent to short term renters. Length of time: 2 years 6 months
3. Move back in to house now. Move out one month a year for short term renters. Length of time: 3 years 3 months
4. Let current renters stay and tell short term renters to find somewhere else. Length of time: 2 years 6 months
5. Allow short term renters to stay one last time, then rent to long term renters. Length of time: 1 year 9 months
6. Use $10k from savings and mortgage pre-payment money to renovate mobile home and rent it out for $550. Length of time: 2 years (added bonus- an extra $300/m for my semi-retirement)

I have been trying to follow plan #5 but plan #6 has some long-term benefits. An extra $300 in rental income plus the $600 from my house once the mortgage is paid off will make my semi-retirement plan MUCH easier. Plan #6 needs more research. We'll see what the electricians say on Saturday.

The good thing is that it is MY plan, not the banks so I don't have to pay fees for refinancing or call them if I am short one month or my priorities change. I know I have been lucky. I found a job relatively quickly when I was laid off 2 years ago and I haven't had any major medical or repair bills. And that is exactly why I want to pay off my mortgage and move on to other chapters in my life while I am still able!

16 comments:

Trevor said...

I just recently found you via pfblogs.org. Love your stuff! :) Keep up the good work on knocking out that mortgage!

Daizy said...

Thank you very much for the words of encouragement, Trevor! Thanks for stopping by!

laura @ move to portugal said...

The impatient person in me says go with one! But all your options don't require waiting too long.

Well done on reaching £55! you're nearly there :)

Sharon Rose said...

Hi there-good for you my dear, keep up the excellent work!

Lizzie said...

Hi Daizy
Depending on how much land you have I might go with 1 as well (Laura is good at this sort of thing!). What appeals to me is that in its done then and dusted, so you have a lot more actual security to your life, especially at the moment when everything is completely mad.
Lizzie

Frugalchick said...

Congrats on reading 55k!

Over the Cubicle Wall said...
This comment has been removed by the author.
Over the Cubicle Wall said...

If you like your land, you can always stick to the plan you are on, and use selling it as a fallback/backup plan. An extra acre of land provides a nice sense of privacy. Congrats on reaching the $55k milestone!

Daizy said...

Hey laura, $55K is only 32,187pounds. Does that sound even better?

Daizy said...

Thanks Sharon Rose. I try to keep going one day at a time. Some day I'll reach the end.

Daizy said...

Hi lizzie, the one acre is my fall back plan. I'll stick with the job as long as I can stand it. Plus, with the way the stock market is going (and my retirement plan with it) I need to diversify! I liked your idea of buying another home for the land and renting it out too. Maybe I'll do that when the house is paid off.

Daizy said...

over the cubicle wall, my thoughts exactly. My land is part of my long-term plan. I would only sell it if I lost my job or something. Especially now, since land prices aren't that great.

Daizy said...

Thanks frugalchick! I added your blog to my blog list.

Daizy said...

Oops, I almost forgot to add you trevor. Nice blog!

The Executioner said...

Whatever you do, don't sell your land. I have a feeling you'd come to regret that decision in time.

Daizy said...

Yes, executioner, I agree. The land will be a great long term investment...but its nice to know I could be free from my mortgage if I wanted to be.