House Mortgage -- Countdown

[greenskeeper]

Come to New Jersey. We would all kill for taxes that low.

I visit and then go home to PA. Taxes for me are around $200/mo (without looking at the tax bill for specifics)

[Randomsaver]

Mortgage Principal - 175,053
Payments Left - 185 (Goal of getting that reduced to 168 and Stretch Goal of 116 months)

I doubt either of those dates are going to happen as we most likely will move in with in-laws before then in order to take care of them.

I am planning to get my parents to live with me by 2020 to take care of them as well. Good luck to you!

[Randomsaver]

We're at 18k now

Our monthly payment is $1607
Principal $983
Interest $69
Escrow $554 (taxes)

Insurance is on the side. After payoff, we will need to budget about 610 per month to cover taxes and insurance.

You are in payoff zone man! Congrats!

[Randomsaver]

Randomsaver, Amazing ! I believe as we will soon approach April, your home purchase date anniversary, I wonder if you're willing to examine how your razor focus may have impacted your home's value and debt.

As I understand it, you decided to focus on mortgage debt of $ 207,000. mid April 2014. In just 3 years, extra sums applied directly to principal has reduced the debt to about $ 104,000. That's phenomenal ! $103,000 reduction in debt in spite of monthly interest payments that began at $ 450. each month...now about $ 252. required each month.

It seems you have regularly reduced principal by $ 1K monthly. How many payments remain if you continue this astounding pace? How much does Zwillow in your region currently estimate's your house's value? How many months have you eliminated from your initial payment schedule? Have you any guesstimate on how much you've saved thus far in interest payments?

How do you feel this program has impacted your Net Worth?

Thanks snafu!

Getting it down half is a nice milestone for me but it is still a huge debt left. I think if I continue my pace I would see it paid off within 4 years including this year. The last time I checked the values in my subdivision is up around $15K from my purchase price. Add to it the interest savings I computed at $20K if I continued at this pace.

[Randomsaver]

Focused Debt : $18K

Focused Debt : $15K

[snafu]

So looking at your proposed figures, it is your plan to wrestle down an initial 30 year mortgage to 7 years?

No matter the specific figures, what has not yet been factored is that you must have a place to live. Even a modest apartment can cost $ 1K per month

[Randomsaver]

So looking at your proposed figures, it is your plan to wrestle down an initial 30 year mortgage to 7 years?

No matter the specific figures, what has not yet been factored is that you must have a place to live. Even a modest apartment can cost $ 1K per month

I wish I'd be that rockstar but I'm not. I call myself a disaster on this mortgage thing.

I got into mortgage back in Jul 2009 and had about close to 5 years of painful interest payments before I started my countdown on April 2014. The goal is to pay my house in 15 years total that is why I was counting down 10 years from that time. My original rate was 5.5% rate which really killed me on the first 22 months before I was able to pull a refi to 4% which lasted until August 2014 where after I got 2.79%.

So far I had paid a total of $66K in interests!

If I continue on my path, I would finish at $70K total interest payment.

If I assumed 15 years and a 4.15% interest (the average of my high 5.5% and my low 2.79%) from start to finish, I would have paid about $90K of total interests, and that is how I derived the savings of $20K.

An interesting analysis I made is comparing rent and rent equivalent (i.e. interest payments + HoA + insurance + tax).

For 15 years, if I was renting $1K a month, that would be $180K (assuming no escalation). My rent equivalent though is $150K, so effectively I would have saved $30K total.

[Jluke]

My original rate was 5.5% rate which really killed me on the first 22 months before I was able to pull a refi to 4% which lasted until August 2014 where after I got 2.79%.


If I assumed 15 years and a 4.15% interest (the average of my high 5.5% and my low 2.79%) from start to finish, I would have paid about $90K of total interests, and that is how I derived the savings of $20K.

Another way to calculate the amount of interest saved is to take your original loan term, I'll assume 30 years at 5.5%. Figure out how much interest you would have paid on that loan with no extra payments...

Take that amount minus the actual interest you did pay and I'll bet you are at a 6-figure savings in interest..

[greenskeeper]

extra $1500 (double required payment) towards principal for March

[Guppy Tender]

Wowsers-Made large progress in March

I literally took off a year off my mortgage in March. Now this is due to the fact that the amount that I was putting down extra for February actually happened at the beginning of March. The payment for march itself was large because I put all of my tax return money towards paying down my mortgage.

My mortgage had 17y41 weeks left at the beginning of March, and as of today it has 16y42w left. Okay close enough to a year gone in one month. Wow I am in shock at the moment.

[greenskeeper]

My mortgage had 17y41 weeks left at the beginning of March, and as of today it has 16y42w left. Okay close enough to a year gone in one month. Wow I am in shock at the moment.

take your amortization schedule and add the interest together for those 12 payments for a real shocker

[Randomsaver]

Another way to calculate the amount of interest saved is to take your original loan term, I'll assume 30 years at 5.5%. Figure out how much interest you would have paid on that loan with no extra payments...

Take that amount minus the actual interest you did pay and I'll bet you are at a 6-figure savings in interest..

Total interest for that would have been a little over $266K of interest payments -- even higher than my loan. So yeah, based on the path of paying an actual total of $70K, I would save $196K.

Then on the 4% 15-Year refi, total interest would be $85K. But this would already be on top of $24K interest I already paid from the prior loan. So bringing a combined interest of $109K. Based on this, I would save $39K.

Then the last and current one, it is 2.79% 5 year variable. Let's assume for the 15 years it averages at 3%, that would be $49K of interest payment. Add what I already paid from the 2 prior which is $55K, it will combine to $104K. Based on this, I would save $34K.

[Randomsaver]

Focused Debt : $15K

Focused Debt : $14K

Happy April Fool's!

[Randomsaver]

So my projection is I would pay 27.5% of my loan to the banks as interest.

When I started this loan, I told myself I would aim to keep it below 25%. Looks like I failed that.

Is 27.5% too high to pay? How is your experience? I'm researching today if I can find any survey or study on this.

[Randomsaver]

My research shows this is called TIP, Total Interest Percentage.