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Mortgage Principal

January 11th, 2014 at 06:19 pm

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...

4 Responses to “Mortgage Principal”

  1. the deacon's wife Says:

    Our PNC bank has free popcorn on Fridays, too!

  2. Buendia Says:

    I love the free popcorn days!

  3. ThriftoRama Says:

    Ours has free lollipops every day. It was a bonus when I took the kids in to deposit their piggy bank money. Positive reinforcement!

    I'd be mad at your brother for insisting your parents pay for part of his house.

  4. Buendia Says:

    Yeah, the house thing... well it's just a loan, and it's well-documented, so I was more upset that he was messing with their finances and extending their loan. I know that it means a lower monthly payment for them, but they were not too far from paying off the house. Ah well... He and I have a very different approach to money. Might be because he has quite a bit more than me!

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