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Thinking about our Mortgage

February 20th, 2015 at 07:26 pm

I just paid off another $20 toward mortgage principal. It's not a lot, but every little bit helps, right?

We have 3 years (best scenario) until this is paid off entirely. Worst scenario is 5 years. I should be feeling really positive, but I am just antsy!

Just to remind myself:
- We have put $300k into this house
- All but $62,310 is paid off
- That is our only debt
- We are living on last month's income
- Our house is worth about $500k
- Three years ago F was 6 and starting private school; it seems like yesterday! So three years will go by quickly (that actually is sort of sad!)

Because we live on last month's income and because I have several sinking funds and because we have an account specifically for car replacement (in 3 years or so), it looks like we have a lot in the bank. But that money is all spoken for. It is not for paying down our mortgage.

What if we took that car money and just wiped out like a third of it, though? Then it would take 8 months to pay it back in. I guess this is my plan for the end of the mortgage.

2 Responses to “Thinking about our Mortgage”

  1. snafu Says:

    Would you find iit helpful to run the numbers on your mortgage? What will you pay in interest 2015, on $ 62,300. ? What will you save by escalating priorities, using the car replacement fund or other category set asides? During the initial years, most of the mortgage payment prepays interest, very little is applied to principal, during the last 5 years nearly all the payment goes to principal with a modest sum in interest according to the mortgage amotorization tables.

    Rather than take 1/3 of car fund, what other choices can you consider? Would you be willing to target all 'snowflake' type sums to mortgage principal pay downs for example?

  2. Buendia Says:

    I'm definitely analyzing further... but we won't raid that car fund now.... It is making a very small amount of interest. Not much. Every snowflake already goes to the mortgage plus another $150 from our budget. We just need to be mortgage free when F starts expensive high school.

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