What Will It Take To Pay Off Our Mortgage Early?
In a few weeks, we will make our first mortgage payment. Our mortgage is a fixed-rate 15 year mortgage. Obviously, I’m not a fan of debt – and I’m going to work very, very hard to pay our mortgage off early. Using a mortgage calculator I calculated the following the scenarios for paying the mortgage off early -
15 years and zero months = mortgage payment + $0 extra per month
12 years and 3 months = mortgage payment + $250 extra per month
9 years and 3 months = mortgage payment + $500 extra per month
7 years and 9 months = mortgage payment + $750 extra per month
6 years and 8 months = mortgage payment + $1000 extra per month
5 years and 10 months = mortgage payment + $1250 extra per month
Looking at our present financial situation, and keeping our retirement and education savings goals in mind, the $750 extra per month appears to be the most reasonable amount for which to shoot.
Here’s my current plan -
1. I will make regular monthly mortgage payment each month.
2. I will make an extra payment, each month, with a minimum goal of $750 extra per month. Apply To Principal will be in the memo line of each check sent for extra payments.
3. I will make additional extra payments, throughout the year, as I earn and / or save extra income, with a stretch goal of $1250 in total extra payments per month.
Hopefully, we’ll be able to turn our 15 year mortgage in to a (less than) 7 year mortgage. Obviously, situations change, priorities shift, and life happens, but, as of today, this is our plan.
It’s been a long time since I typed this, so here goes – Debt Reduction Rocks!