House Mortgage -- Countdown

[Gailete]

Thanks for naming Bank rate. Some of the links I found wouldn't let me do what I want. If I can keep up with the extra $50/month I should have it paid off in 9.5 years. Or if the credit cards get paid off sooner, and I'm really hoping that they do! I should have the mortgage paid off sooner than 9.5 years which would be about 2 years early.

[Jluke]

Thanks for naming Bank rate. Some of the links I found wouldn't let me do what I want. If I can keep up with the extra $50/month I should have it paid off in 9.5 years. Or if the credit cards get paid off sooner, and I'm really hoping that they do! I should have the mortgage paid off sooner than 9.5 years which would be about 2 years early.

Why are you paying $50 extra per month to the mortgage when you have credit card debt? Is it at 0%?

[disneysteve]

Down to $15,921.94.

New balance $14,252.39.

9 more months tops and I'm sure I won't wait that long. Probably 4 or 5.

[Gailete]

Why are you paying $50 extra per month to the mortgage when you have credit card debt? Is it at 0%?

Because I want it paid off ASAP. I am also paying extra on all the credit card bills. Last year I got our rental property paid off early which was good as the last month I had to make payments the tenant stopped making any as well. The year before that I paid off the car early. Granted not how everyone would do it, but it is working for us. My husband only will have life insurance on him for about 3 more years and with the physical problems that have developed since he got the policy, I am trying to get the mortgage paid off to help cover if something happens to him once the insurance is no longer in effect. Currently we have enough in the bank to pay off the credit cards in full, but decided it wouldn't be a wise idea as we would have empty pockets at that point and then when we had to write a check for $950 for a new hot water heater like we did today, we would be going back to the credit cards. Our income is minimal and I would rather have a paid off roof over my head, than having all the credit cards gone. They are going down by leaps and bounds anyhow. The one that I have almost paid off isn't the biggest interest rate either, but it was the smallest. Each paid off item gives me a boost and at times that is much more important than which is more or less interest. No Dave Ramsey would not be happy with me. We do have one credit card that is at zero and the payments will pay it off in full if not paid late. There is no point paying extra on it, otherwise it would be next in line to get paid off.

[disneysteve]

I am also paying extra on all the credit card bills.

Each paid off item gives me a boost and at times that is much more important than which is more or less interest.

Given that you like that boost from paying off an item, have you thought about doing a Dave Ramsey type of snowball method? Pay just the minimum on all credit cards but the smallest balance and apply all extra money to that. Once it is paid off, move on to the next smallest balance, and so on. Overall, it might not be any faster than paying a little extra on every one but it would reduce the number of bills faster and give you that "pay off boost" more regularly.

[Gailete]

I've been doing basically something like that on one card and as today is pay the bills day I just saw that my amount due for that card is now below $1000. One of the things that I try to do as much as possible is for the cards that are in use (one for business and hubby's Discover) is to not only pay the minimum rounded up and as much as possible to pay off items that were purchased via the card during the month which is part of the paying more. The one I am paying off has no charges to it so when it is paid off, it is done, same as my zero % card. Our biggest balance card also is not getting anything new put on it, but we have had to use it in those years where we had no cash for property taxes, taxes in general, propane prebuy (that even putting it on a credit card for a few years doesn't begin to equal those near heart attack inducing propane deliveries that I had to find a way to pay within 5 days! You never knew when they were coming or how much it would be and our first year in this house, I recall deliveries in the $700-800 range. I was used to natural gas and in a bad month maybe $200. Anyhow last year we paid cash for everything and things are starting to lighten up, partly because other bills are paid off so we don't have those to also pay the snowball effect is happening. I'm happy with how things are going and I got my SS check today in the bank and I got a raise of $37 which is better than the one year that I got $2 - which wasn't worth the time and energy of the programmers to set it up!

It sounds like a lot and it is, but still way less than when married to Mr. Bigbucks as my son called him. In barely 1-2 years we were in $42K of credit card debt, a huge mortgage, huge car payments, etc. Nothing but the best for him. I had to divorce him just to keep from drowning in bills. When I got married to my husband I was making good money as a full-time RN and my husband was making good money as well and then I got sick and within 6 weeks of our getting married, I could no longer work and he was losing time for his work ferrying me to Doctors and hospitals, etc. The short term disability ran out after 6 months and then it was almost 2 years before SS granted me disability. Those couple years totally wrecked out finances. It has taken many years to finally get sorted out. I am at peace with how things are going financially at this point and feel very blessed.

[greenskeeper]

February payment...down to 5 digits on the mortgage.....rather large digits however. Still on pace for payoff under 9 years at worse, most likely 5.

[james.hendrickson]

Checked our year end tax statement - on our mortgage I paid roughly 14,000 in interest and 7,000 in principle payments. I can see the value in having a home paid off - mortgages are a huge drain on your budget.

[disneysteve]

I paid roughly 14,000 in interest
mortgages are a huge drain on your budget.

The same can be said for pretty much any debt. The interest charges are what kill you. Even at a relatively low rate like 3 or 4%, with high principal like with a home loan, that interest amounts to tens of thousands of dollars over the life of the loan. Paying even a small amount extra each month can save you a bundle over time.

[Gailete]

This past month my mortgage dropped below $60K! I have paid around $1000 in extra payments when possible over close to 2 years. A few times I couldn't pay it, but when I could, I did. Very happy to see credit card bills going down as well. My smallest cc was due on 2-23 and with a minimum of $50. I paid the bill on 2-2 for $100. So the payment is made and rather than holding it in my checking account, It is paid and will decrease the amount that is owed in interest. Not a whole lot of interest, but every little bit helps.

[greenskeeper]

This past month my mortgage dropped below $60K! I have paid around $1000 in extra payments when possible over close to 2 years. A few times I couldn't pay it, but when I could, I did. Very happy to see credit card bills going down as well. My smallest cc was due on 2-23 and with a minimum of $50. I paid the bill on 2-2 for $100. So the payment is made and rather than holding it in my checking account, It is paid and will decrease the amount that is owed in interest. Not a whole lot of interest, but every little bit helps.

If you have credit card debt you should be throwing the extra $1000 at them instead of the mortgage.

[Gailete]

If you have credit card debt you should be throwing the extra $1000 at them instead of the mortgage.

I have my reasons for doing things how I am doing them and it is working for me. Thank you for your thoughts though. I have my reasons for getting the house paid off as soon as possible. Hoping by summer to get the smallest card paid off as well AND have continued to make big dents in the other ones.

[Randomsaver]

Congrats to all for ANOTHER YEAR of COMPLETING MORTGAGE PAYMENTS!

Also, hi to all. I will be rejoining as a regular on this thread as I start payment this year of my new house. It took them some time to complete but I am settled in my new house (pending delivery of my new refrigerator which will be coming in around mid-January).

Mortgage Principal Beg Balance : $73K

Mortgage Principal Beg Balance : $72K

[james.hendrickson]

Mortgage Principal Beg Balance : $72K

Random saver - whats your payoff goal this year? Are you going to dump all 72 of your mortgage debt?

[Randomsaver]

Random saver - whats your payoff goal this year? Are you going to dump all 72 of your mortgage debt?

james, thanks for the question. My target is to bring it down to $59K by year-end. Though I would be very happy if I could get it down to $58K. I am targetting to payoff hopefully end of 2023.

Mortgage Balance Targets:
Jan 2019 $73K
Jan 2020 $59K
Jan 2021 $45K
Jan 2022 $31K
Jan 2023 $17K
Jan 2024 $ 3K