Saturday, October 31, 2015

Mortgage Progress for October 2015

I did it!  After 6 months of pausing my extra mortgage payments in order to help my niece with college money, fix up my mobile home, and pay car bills, I finally had money to put towards the mortgage this month.

I paid an extra $1,200 which gives me a balance of $42.799 left on my mortgage.  At this $1,200 rate, I will have it paid off in 2 years and 5 months.  That's a bit disappointing because I want my mortgage payoff to coincide with my nephew's going off to college (hopefully going off to college).  I will have to try harder and speed things up.

It feels great to be paying down the mortgage again.  I know many people would rather invest the money but with my goal of retiring early, I am not in a position to take risks with my savings.  Plus, I find paying off the mortgage to be the most motivating.  I tried saving instead and it didn't work out.  There were so many other things that I wanted to spend the money on.  Locking my money up in my house keeps me from spending all of my early retirement money before I even retire early.

The plan right now is to sell the house in 3 years and use the money to live on for the next 15 years when I will be able to tap in to my 401K.  I hope it works out.  My retire date seems to be forever moving backwards.  I'm back on track for now.  Only $42,799 to go.

9 comments:

Lizzie@her MFW Homeworld said...

Well done. Is that better than letting the property? The accountant in me is always nervous of disposing of an asset, especially one that brings in actual income

george said...

congrats on getting back to the plan. is the loan from mom also included in a debt paydown before retirement? or is that small enough to manage? it seems like when life comes up, you have dealt with it well. cheers.

Kim said...

I was the same way with paying off my house. I did minimal retirement saving until my house was paid off. Probably not the perfect financial plan, but the peace of mind it gave me was enormous. Now that money goes into investments. So glad you were able to start punching the mortgage debt again.

thequiltingdoberman said...

This is so inspiring. I don't actually own a house and I am not sure if I ever will, but I do all I can to try and make retirement an earlier option!

Emirati Habibi said...

Mortgage loan rates depends on current market and risk, recently my friendly got mortgage loan in Dubai with good interest. My friend want to start to his business in Dubai so he applied for mortgage loan in Dubai.

Daizy said...

Lizzie, it's my house that I am living in on the weekends that I want to sell. The rental house is still rented (although there are times when I am tempted to sell that one too.)

Daizy said...

george, you have a very good memory! That is not including the $8,000 that I owe my mother for the barn-shed. I asked her if she would like to be paid back before the mortgage and she said that she was fine with waiting since she doesn't need the money right now. I am calculating interest for her. When the mortgage is paid off I should have $2,000 extra per month to pay off my debt to my mother as long as I don't quit my job too soon! But if I did quit my job, I would pay my mother back out of the house money when I sell it.

Daizy said...

Kim, I agree, probably not the best financial plan but psychologically, it sure is motivating!

Daizy said...

thequiltingdoberman, sometimes I wish I rented with all of the maintenance that a house demands. It will be better when I only have one house to worry about instead of 3.