We refinanced our mortgage in January 2012. Our goal is to sell our home, downsize and get rid of the mortgage. When I originally started this blog our five year mortgage payoff date was July 2012. Well life threw us a few curve balls and our debt went way up, not down! But we’ll get there eventually. We borrowed some extra in the refinance so we could finish the renovations needed to sell the house.
Here’s the gory details:
- Mortgage Total: $200,544.30
- Monthly payment: $1264.
Here’s the end of year totals from the amoratisation schedule. I’ll be aiming for these balances asap.
198,189.91March 2012195,684.35April 2012- 193,017.89
- 190,180.21
- 187,160.31
- 183,946.47
- 180,526.26
- 176,886.40
- 173,012.80
- 168,890.48
- 164,503.42
- 159,834.65
- 154,866.05
- 149,578.39
- 143,951.19
- 137,962.64
- 131,589.52
- 124,807.16
- 117,589.25
- 109,907.83
- 101,733.16
- 93,033.54
- 83,775.27
- 73,922.46
- 63,436.95
- 52,278.08
- 40,402.66
- 27,764.65
- 14,315.07
- 0.00
I like the idea of using the end of year balances as your milestones. It will make progress seem much more possible than ‘another 10K gone’ – think I’ll have to do this too.
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Louise Reply:
March 8th, 2012 at 5:10 pm
Hi nicky, it seemed a bit more do-able this way, more motivating
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Louise, this is a beautiful idea! I love it! I definitely see this as far more motivating than “pre-pay the mortgage by $10k” and you can also see just how much it pays off to pre-pay it early on.
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Louise Reply:
April 8th, 2012 at 4:31 am
Hi Leigh, it’s defintitely been much more motivating for us than the old way. I think the focus on saving ‘years’ instead of ‘dollars’also helps us to throw as much as we can each month at it, so we can hit those end of year targets asap
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I did mine a similar way, but looking at what my new end date was after each payment. So if you’re now two years into your 30-year loan after two months of payments, then instead of having 29 years and 10 months left, you have only 28 years left. I made a graph of those numbers (regular payment months left versus actual payment months left) and that was pretty motivating.
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Louise Reply:
April 8th, 2012 at 4:32 am
I like that idea! seeing the actual date would be great, I might have to do that
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