December 2017 – Mortgage Payoff Update

fancy home

At the end of November, our remaining payoff balance is at 26.40% of our original mortgage that we took out in 2007. That’s a reduction of 0.66%.

How much longer until the payoff?

Once all of Decembers’s payments are applied, we’ll have reduced our mortgage balance by about $895 this month. We successfully got the mortgage just below $36k by the end of the year. According to our schedule, we have 10 payments left. That means our mortgage will be paid off on November 1, 2018.

We reached our safe amount of padding in our savings account, so extra money each month will now go straight to the mortgage. We’re going to be pushing it kind of close to make the November 1 deadline, but I have a plan.

I’ve increased my goal of how much I’d like to bring in from side work. I also plan on ramping up selling items on eBay and Amazon this year. I’ve done this  in the past with various levels of success, but I think with proper coaching and guidance I will bring in $1000 a month.

This is important because we’ve already planned a celebration vacation in December which means we’ll need to save up extra to pay for that as well. I believe it’s all possible, it’s just a matter of planning and getting there.

Budget Series

I haven’t forgotten about the budget series and the personal care category. I’ll hopefully have an update for you on that soon.

November 2017 – Mortgage Payoff Update

mortgage blackboard

At the end of November, our remaining payoff balance is at 27.06% of our original mortgage that we took out in 2007. That’s a reduction of 2.14%.

How much longer until the payoff?

Once all of October’s payments are applied, we’ll have reduced our mortgage balance by about $2910 this month. We are on track to be below $36k by the end of the year, which was the goal we set earlier this year. Like I said before, we’ve made some temporary adjustments to our payoff schedule. If we kept our accelerated schedule, we’d have 11 payments left. That means our mortgage will be paid off on November 1, 2018.

This month, I had some extra money come in from side work which helped us to boost the payoff a bit more. Once we’ve got a reasonable padding in our savings account, I plan on putting anything extra directly towards the house again. The padding should be built up by the end of December at the latest. After that, we’ll be making much larger payment against the principal.

Budget Series

I’ll be continuing the series that covers our budget. The next category we’ll be covering is personal care. What is “personal care”?

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October 2017 – Mortgage Payoff Update

mortgage blackboard

At the end of October, our remaining balance is at 29.20% of our original mortgage that we took out in 2007. That’s a reduction of .64%.

How much longer?

Once all of October’s payments are applied, we’ll have reduced our mortgage balance by about $873 this month. We finally crossed the $40k mark and are slowly working towards $30k. Like I said last month, we’ve made some temporary adjustments to our payoff schedule. If we kept our accelerated schedule, we’d have 12 payments left. That means our mortgage will be paid off on November 1, 2018.

Last month, we started saving up money for some potential changes in the future. In order for us to have a reasonable idea on a potential mortgage payoff date, I’m determining the payoff date based on if we applied all the money we’ve saved up “just in case” and added any extra money that should be coming in from other sources over the next 12 months. I have to be pretty certain that the money is going to come or else I don’t add it.

Budget Series

I’ll be continuing the series that covers our budget. The next category we’ll be covering is entertainment. Everyone needs to have some fun money, but how much do you really need?

Photo by Got Credit

September 2017 – Mortgage Payoff Update

mortgage blackboard

At the end of September, our remaining balance is at 29.84% of our original mortgage that we took out in 2007. That’s a reduction of .64%.

How much longer?

Once all of September’s payments are applied, we’ll have reduced our mortgage balance by about $870 this month. We didn’t reach $40k like we had hoped by October 1. We’ve made some temporary adjustments to our payoff schedule that I’ll explain below. Right now, we’ve got 42 payments left with the adjustments we made. That means our mortgage will be paid off on April 1, 2021.

You might be wondering why the extension in time and increase in the number of payments. Essentially, we’re preparing for a potential transition in the future. We don’t know all the details on what it will be yet, but we’re preparing anyhow. One way of preparing is by piling up some extra cash. Once we’re through this time, we’ll take all the extra and apply it back to the mortgage. At that point, it will hopefully wipe out the rest of the mortgage or get us very close. For that reason, our large payments will be reduced for the next several months.

Budget Series

I’ll be continuing the series that covers our budget. The next category we’ll be covering is clothing. How much do you spend on clothing each month? What all does clothing cover? It sounds like an easy one, but we include some items in that category you may not think about.

Photo by Got Credit

August 2017 – Mortgage Payoff Update

mortgage blackboard

At the end of August, our remaining balance is at 30.48% of our original mortgage that we took out in 2007. That’s a reduction of 2.22%.

How much longer?

Once all of August’s payments are applied, we’ll have reduced our mortgage balance by about $3020 this month. We’re marching towards $40k and will be there by October 1. We’ve only got 14 payments left! That means our mortgage will be paid off on November 1, 2018.

If you’ve followed this series each month, you might be wondering why we’re still at 14 payments and the payment date has been pushed back. I had originally planned on teaching a class at a local community college this fall. However, due to circumstances beyond my control (you wouldn’t believe them if I told you), I wasn’t allowed to teach the class. They’re going to try to correct the issue so I can in the future but hopefully, the mortgage will be paid off by then.

I had to put those adjustments into the forecast which pushed things back another month and added the payment back on. In addition, we started homeschooling this fall with our two daughters. That means they are involved in activities which have an extra cost. I’ve had to trim back the mortgage payoff by a slight amount ($115 a month) to fund those activities. Unfortunately, that means the margin we had to make sure that we don’t add any extra payments has dissolved. I’m hoping to recover it in the next few months by picking up more side work.

Budget Series

I’ll be continuing the series that covers our budget. The next category we’ll be covering is restaurants and dining out. Everyone likes eating out, but how much is too much? What do we consider dining out versus groceries? You’ll learn soon in the next blog post.

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July 2017 – Mortgage Payoff Update

mortgage blackboard

At the end of July, our remaining balance is at 32.7% of our original mortgage that we took out in 2007. That’s a reduction of 2.32%.

How much longer?

Once all of July’s payments are applied, we’ll have reduced our mortgage balance by about $3158 this month. We’re marching towards $40k and will be there by October 1. We’ve only got 14 payments left! That means our mortgage will be paid off on October 1, 2018.

Luckily, these numbers are all using conservative estimates so it should happen unless something tragic or extraordinary occurs. I’ve also started doing travel planning as a way of bringing in extra income and doing something I enjoy (talking about Disney). You can get more information here: https://www.facebook.com/AdamOUAV/ I’d be happy to help you plan your next vacation.

New Series

I’ll be continuing the series that covers our budget. The next category we’ll be covering is fuel. It doesn’t sound exciting, but might be of interest to many of you.

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June 2017 – Mortgage Payoff Update

mortgage blackboard

At the end of June, our remaining balance is at 35.02% of our original mortgage that we took out in 2007. That’s a reduction of 2.21%.

How much longer?

Once all of June’s payments are applied, we’ll have reduced our mortgage balance by about $3002 this month. We’re finally below $50k and marching towards 40k. We’ve still got 15 payments left! That means our mortgage will be paid off on October 1, 2018.

I recalculated everything to make them a bit more conservative. Unfortunately, that adds one more month. However, we should be able to more easily reach this deadline. Before we were really stretching it and didn’t have a lot of flexibility for when other things come up.

New Series

I’ll be posting a new series soon that covers our budget. My guess is that there are questions out there about how we’re paying off our mortgage so quickly and being able to still live life in general. When we started budgeting, we did a lot of research trying to figure out how much other people were budgeting for different categories. Hopefully it will give some insight to everyone who reads about it.

Photo by Got Credit

May 2017 – Mortgage Payoff Update

House Jar

At the end of May, our remaining balance is at 37.23% of our original mortgage that we took out in 2007. That’s a reduction of 2.68%.

How much longer?

Once all of May’s payments are applied, we’ll have reduced our mortgage balance by about $3648 this month. We’re almost below $50k. Currently, with the new monthly figures in place, we’ve still got 15 payments left! That means our last mortgage payment would be applied on September 1, 2018.

Where did the dramatic increase in our payment or the drastic decrease in our balance come from? I talked it over with my wife. We decided to go into extreme payoff mode to get this thing knocked out. In order to do this, we decided to delay some of our other goals. By lowering the amount we put into a couple of savings accounts, college savings, and Roth IRA, 7 payments are cut off!

It would be nice to do the savings, investing, and pay the house off all at the same time. However, not being able to do everything at once will encourage us to find new ways to pay it off faster so we can get to the extreme investing!

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April 2017 – Mortgage Payoff Update

House Jar

At the end of April, our remaining balance is at 39.91% of our original mortgage that we took out in 2007. That’s a reduction of 1.15%.

How much longer?

Once all of April’s payments are applied, we’ll have reduced our mortgage balance by about $1558 this month. That means we’ve broken through the $55k barrier. Currently, with the new monthly figures in place, we’ve still got 23 payments left! That means our last mortgage payment would be applied on April 1, 2019.

This month we had some extra expenses which ended up adding an extra month to our payment schedule.My wife is going on a mission trip in June and final payments were due this month. Luckily, about $150 will get us back on track and remove that extra month’s payment. In addition, with the phone issues we had, we purchased a new Motorola G5 Plus for $229. At this point, we can certainly catch up on the mortgage payments, and hopefully cut a bit extra off. All that’s necessary is some extra work through the side business or some other unexpected income.

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March 2017 – Mortgage Payoff Update

House Jar

At the end of March, our remaining balance is at 41.06% of our original mortgage that we took out in 2007. That’s a reduction of 1.50%.

How much longer?

Once all of March’s payments are applied, we’ll have reduced our balance by about $2050 this month. That means we’ve broken through the $56k barrier. Currently, with the new monthly figures in place, we’ve got 23 payments left! That means our last mortgage payment would be applied on March 1, 2019.

There weren’t really any extra payments made this month other through the day job’s salary, a small job through the side business, and some other minor income amounts. We also had some expenses that took away from the progress this month, but it didn’t affect the number of remaining payments. It’s helpful to know we’ve got a bit of flexibility and still stay on track.

Photo by Tax Credits