As we work towards FIRE goals, I have taken a close look at our mortgage. In the last couple of years, we have been focused on lump sum payments every year, paying the max 15%. Now that our mortgage is down to just $51K with just a 3 year term left, I'm not sure that is the best method (it might never have been the best method, we didn't research it thoroughly).

I used some mortgage calculators and I think double down is the best method but want to get some feedback from wiser brains.

Mortgage Balance: $51,716.49

Regular Payment: $595.13

Maturity Date: August 25, 2016

Term: 5 years

Remaining Term: 2 years, 11 months

Remaining Amortization: 3 years, 7 months

Interest Rate: 3.59%

Variable or Fixed: Fixed

Payment Frequency: Biweekly

If I double down, we would pay an extra $15,470 a year and be done in UNDER TWO years (ran numbers for the first time and am super excited - IF these numbers are right).

Total interest over 2 years of: $1640.

If we do this, we can sock away extra savings directly towards retirement. (i.e. out of $40K a year we have been dedicating towards mortgage, we would put $30K and have another $10K for RRSPs/whatever).

If we prepay, we can only prepay 15% of our original amount. So $25K every year. We just did this so will be eligible again next September.

Total interest: $1877.

We would only have to prepay one more time next year. The following year, our regular payments should discharge the whole mortgage. I don't think we would be able to discharge it earlier than that without penalties.

If we do this, we can sock away extra savings directly towards retirement in Year 2. (i.e. we would put $40K in Year 1 and only $13K in Year 2, with $27K for RRSPs or whatever)

I'm still figuring out mortgages, etc and don't completely understand it all so would be super grateful if folks can help me point out assumptions I have wrong or anything I am missing in my calculations.