Author Topic: Mortgage Payment Club $175K : Starting current balance of $150K-$199K  (Read 2278 times)

YoungGranny

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Piggybacking off the other thread for people in the $100-149k range but increasing it for my situation.

4 months ago hubs and I got married and moved from my "starter" home into a much more permanent home. It's bittersweet because that mortgage was down to $110k and now we're up to $175k BUT we see ourselves in this new home for a long, long time. It's closer to work (I bike now, biking is cool), faces south and was very well built so our utilities have been 70% less this winter, it's in a better school district, closer to grocery stores, restaurants etc ie very walkable/bikeable. Basically we got to move into a community that better fits our needs for the long term.

Anyways enough rambling. Our goal is 4yrs 3months, starting at $176.2k today, who wants to race?

YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #1 on: March 27, 2017, 07:25:56 AM »
Paying the mortgage today - have some extra money to throw at it this month which is super exciting.

Beg Bal: $176.2k
Principal Portion: Just shy of $5k
End Bal: $171.3k

Highbeam

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #2 on: March 27, 2017, 10:25:40 AM »
We're at 190k left, 3%, 15 year started in January 2015. I have a payoff fund which is actually a taxable account at vanguard. It's up to about 170 and will hit 190 by fall. Depending on how you want to look at things I am 25k away from payoff or I may let it ride for 12 more years. Paying off the mortgage with accelerated payments never appealed to me since that money is locked up but you still have a monthly payment. There is also the option of dumping a large sum of money into it and having the mortgage "recast" to reduce the monthly payment. Hmmm. Options.

YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #3 on: March 28, 2017, 06:03:07 AM »
Yea we thought about putting the extra money into a vanguard account and then paying it off once the balance was greater than our mortgage. The reason we didn't was because on a short time-frame of 4years there's a possibility the market would be in a low point when we wanted to pay it off. It seemed a bit too much like trying to time the market so we opted to increase our monthly payments instead. Since we feel like we have enough liquidity I'm not super worried about locking the money up but I could see why that's a factor for some. Best of luck with your decision!

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #4 on: March 30, 2017, 10:11:35 AM »
Beg Bal: $157,100
Principal Paid this month: $11,800
End Bal: $145,300

This is our mortgage on a 2nd home.  We refinanced in February to both get a lower rate and also switch to a lender that would allow additional payments online anytime we wanted to make them.  Prior lender did not have this capability. 

Our plan is to try and pay it off in 5 years.  Is it possible?  I don't know.  I do know that we won't be paying it down as quickly as this month's principal paid amount suggests.  This month we applied some excess from cash reserves in a money market and small taxable investment account, and also applied everything over $1,000 left in the checking account at the end of the month. 

We haven't made any changes to retirement account automatic contributions and are still on track to have about $1.1 - $1.2M in invested assets in ~9 years.  Hope to FIRE then and will likely sell both houses and pay cash for a farm somewhere. 
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YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #5 on: March 30, 2017, 10:31:00 AM »
Glad to have you join kapnfriday! Awesome progress this month paying down 5 digits of principal!!!! I'm sure if you keep at it you'll be free of it in 5 years or less. Is your first home already paid off?

We're also not changing our retirement contributions I think it's definitely worthwhile to max those out before paying down mortgage debt. Awesome FIRE goal, excited to watch your progress :)

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #6 on: April 03, 2017, 11:14:09 AM »
Thanks YoungGranny.  Our first home is not paid off and we don't plan to pay that off early.  If we only had one mortgage we would likely not pay that off for all the reasons that have been hashed and rehashed in numerous other threads.  But with two mortgages I feel like we need to make one go away as fast as possible. 

I do monthly charts as recommended in "Your Money or Your Life" and I made one for the 2nd home mortgage payoff.  I tried to attach it - hope it worked. It'll be fun to watch that line go down and down towards $0. 
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YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #7 on: April 04, 2017, 06:27:45 AM »
Very awesome, nice chart! I love visuals.

Yea we debated on paying down mortgage vs investing the difference and decided to do a weird hybrid. I KNOW it's better to put it in investments but my DH is willing to make further cuts to pay extra on the mortgage so I look at it as a win/win. It may not be the absolute best but it is diversifying our portfolio. Plus getting him to cut back on things for 4 years might make him realize we don't need them. Then we can really dump a lot towards investments :)

YoungGranny

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Beginning balance: $171.3k
Principal: $9,300
Ending balance: $162.0k

We were saving for our upcoming vacation this summer but then realized my DH had enough points to cover our airfare and lodging. Dumped the extra money on our mortgage so that's why there's so much extra this month. Two really awesome pay-off months in a row but I know it won't be able to continue. Sadly, I don't just find an extra $4k every month.

kapnfriday

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Nice work YoungGranny.

We had another good month too - and rather unexpectedly. 

Beginning balance: $145,300.00
Principal: $6,072.48
Ending balance: $139,227.52

We got our fed & state tax refund for a combined $2,000, and my wife got about $2,000 in longevity pay.  We also had a record low month in terms of non-mortgage expenses of about $2,000 total. 

I am also not expecting this level of payoff to continue.  Like you we just don't get an extra $4k every month. 
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runewell

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My 15-yr mortgage @ 2.625% started at $150,000 back in March 2013.
It is now $113,251.  That is because I am not going to throw a single extra penny at it. 
With rates like that, there is a much better likelihood that my money will get a higher rate of return in the stock market. 
 
Please leave Dicey out of this! Have you not been paying any attention? Trolls are not welcome here!

YoungGranny

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Nice job kapnfriday! If only we got an extra $4k a month think how quickly these darn things could be paid off!

runewell - Nice so you'll be done in about 11 years which isn't too shabby anyway :)

YoungGranny

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Beginning balance: $162.0k
Principal: $5,000
Ending balance: $157.0k

Slowly just chugging away at it, nothing too exciting this month.

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #13 on: June 07, 2017, 05:23:06 PM »
Beginning balance: $139,227
Principal: $2,192
Ending balance: $137,035

Going in the right direction anyway. 

YoungGranny - $5k this month is just chugging away at it and not too exciting?  I wish I was chugging and lacking excitement like you are :-)
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YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #14 on: June 08, 2017, 06:01:46 AM »
Nice job kapnfriday! Over $2k is definitely something to be proud of!

Now that you point it out I do feel a bit ridiculous for how I worded it lol....from my perspective we should be able to hit close to $5k of principal each month so I didn't feel like we did anything 'extra' this month. With a balance that large we're still looking at about 3 years to pay it off so kind of settling in for the long haul I suppose. But then I remind myself we're paying it off in 10% of the normal time and 3 years suddenly doesn't seem incredibly long at all.

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #15 on: June 12, 2017, 09:33:01 AM »
3 years (or in my case 5) does seem like a long haul when it's all ahead of you, but think back to 3 years ago - 2014.  Does that seem like it was very long ago?  What were you doing then? 

We have an extensive photo collection on a flickr page that my wife keeps up and I look back on what we were doing 3,4,5 years ago and can't believe that much time has gone by since those events.  Funny how time passed doesn't seem as long as the same amount of time yet to pass. 

If you need something else to smile about just think of all the mortgage interest you're saving by paying off so quick. Tens of thousands of dollars you would have paid someone else for doing you a favor. 

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kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #16 on: July 14, 2017, 09:36:39 AM »
Updating for June:

Beginning balance: $137,035
Principal: $1,494
Ending balance: $135,541

June was a doozy in terms of unusual expenses all hitting at once.  I felt fortunate to have an extra $1k to throw at the cabin mortgage. 
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YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #17 on: July 19, 2017, 01:04:39 PM »
Beginning balance: $157.0k
Principal: $400
Ending balance: $156.6k

The opportunity to grow our real estate business came up so we've shifted our priorities to come up with the down payment for that. We'll probably be paying off our main residence much slower now but still on the right path in the long haul. We both still want to pay it off early.... we want to FIRE In 7 years and don't want a mortgage at that point if possible. So anyways I'm gonna stick around here and see what happens :)

StarBright

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #18 on: August 01, 2017, 10:38:19 AM »
Hi All,

Hope you don't mind if I jump in, but I find these gauntlet threads so helpful to look at when I'm in autopilot mode.

Mortgage Start October 2016: $165,375
August 2017: $158, 064

We're aiming to pay $400 extra towards the principal a month right now (paying off a 30 year as if it were a 15 year), but daycare costs for oldest child are ending next month so who knows?


YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #19 on: August 01, 2017, 10:58:18 AM »
The more the merrier StarBright! I'm sure it'll be nice to have that extra money from daycare cost back in your stache each month!

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #20 on: August 01, 2017, 11:42:29 AM »
Beginning balance: $135,541
Principal: $2,504
Ending balance: $133,037

July spending was mostly back to normal after a crazy June so there was more money left over to throw at the cabin mortgage.
My mid-life journey to financial independence
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neverrun

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #21 on: August 18, 2017, 07:36:20 AM »
I'm jumping in.

Beginning balance on 8/25/17 will be $200,000 even. 

I've just been moved for work and instead buying in cash as I received more equity from my previous house than my soon to be new one cost I'm taking out a 30 year mortgage and investing about $300,000 instead.  The money will be handled a bit more conservatively than I had previously invested but all dividends will be applied to extra principle on mortgage, additionally I'll be adding at a minimum about $750 a month in extra principle payments at least in the beginning.  At any time I "might" just pay the whole thing off or I may stop extra payments depending.  A lot of it depends on if I decide I have enough to FIRE before my current 2025 plan.  I will lump sum pay off the remainder in 2025.

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #22 on: September 07, 2017, 07:37:13 AM »
Beginning balance: $133,037
Principal: $3212
Ending balance: $129,825
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YoungGranny

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #23 on: October 04, 2017, 07:27:26 AM »
Beginning balance: $156.6k
Principal: $1,500
Ending balance: $155.1k


Very slowly chipping away at the mortgage right now. Our plan is to acquire more properties then start paying off the mortgages more aggressively. After we have our full real estate portfolio and it's paid off we can easily 'retire' on the cash flow alone. Our primary house has the lowest mortgage rate right now so it's taken a firm position in the backseat. I'll still update from time to time; mostly because I love seeing everyone else's progress!!

kapnfriday

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Re: Mortgage Payment Club $175K : Starting current balance of $150K-$199K
« Reply #24 on: October 31, 2017, 02:45:48 PM »
Beginning balance: $129,825
Principal paid in September and October: $3446
Ending balance: $126,379

We've brought the cabin mortgage down by $30,721 over the first 9-months of our 5-year plan to pay it off. I guess that sounds like progress, but it sure seems slow.
My mid-life journey to financial independence
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