Yesterday I went to the bank (I always go on Fridays because they have free popcorn!) and paid down principal on our mortgage. I used the refund on our escrow plus the $150 I am now allotting each month to paying down our mortgage plus some money from savings. We now owe $77,684 on our house and if we just pay regular payments, it'll be paid off in October 2020. (But I am continuing to pay down principal, and the goal is to have it paid off in June 2019).
I automatically put money into our IRAs and a car savings account and into F's tuition account, but paying down principal on our mortgage is by far the most satisfying way to save for me. I think it's the way I can track how much sooner we pay off the mortgage; it's more tangible. Plus it's our only debt.
I called my mother not long after my visit to the bank. She seemed surprised that we only owe $77,684. My parents still have a mortgage and just refinanced (long story - but it was initiated by my brother who needed some of their equity to afford the house he wanted to buy). I think I'd feel really nervous if I had a mortgage that exceeded my life span, even if the amount of the mortgage was just a fraction of how much my house was worth. But everyone handles money differently...
Mortgage Principal
January 11th, 2014 at 06:19 pm
January 11th, 2014 at 07:03 pm 1389466987
Our PNC bank has free popcorn on Fridays, too!
January 11th, 2014 at 08:03 pm 1389470637
January 11th, 2014 at 11:56 pm 1389484569
I'd be mad at your brother for insisting your parents pay for part of his house.
January 12th, 2014 at 12:15 am 1389485733