Category Archive: Mortgage

How We Are Paying Off Our Mortgage

We have a 15-year fixed-rate home mortgage – and we are working hard to pay it off in less than 10 years.

We purchased our home in February of 2010.  The original mortgage term of our our loan was 180 months, with the loan due to be paid off in March of 2025.  So far, we have whittled away 7 months from that date.

Here’s what we do –

Each month we make our monthly mortgage payment.  We do so via an auto-draft from our online banking account.

Then, we make an extra, principal-only payment.  We write (type) the words “apply to principal” in the memo section of the check.  Our mortgage company knows to apply this payment towards our principal – and to not treat it as a prepayment for the next month.

(Once in a while, we will combine these payments into a single check – or withdrawal from online banking – but I prefer 2 separate transactions, so that I can more easily keep track of our extra payments.)

Throughout the month, should we make any extra money – or find that we do not spend any budgeted funds – we’ll take that money an send it to our mortgage company, as an additional principal-only payment.  Often, we’ll have months where we send 2 or even 3 principal-only payments.

ncnblog mortgage

I have seen all kinds of formulas for reducing a mortgage, including bi-monthly payments, or adding an extra payment at the end of the year.  These definitely work – but for us – our simple system works.  We make our payment – then we make a principal-only payment (usually just a few dollars) – then we work hard to make (or save) extra throughout the month – and we send that.

Our approach is hands-on and keeps us focused on this long-term goal.  (We are paying off our mortgage in addition to saving for retirement and kids’ college.)  Blessings.

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Mortgage Payoff Progress With Chart – April 2014

My family and I have lived in our current home for 4 years.

We are working hard to payoff our 15-year, conventional mortgage.

I keep track of our progress using a simple spreadsheet and pie chart.  This provides motivation to keep going, especially when we are tempted to feel frustrated with our progress.

Here’s a chart with details for our current progress –

may2014

The percentages above represent the amount of our mortgage we have paid – 23.72% – and the amount we still owe – 76.28%.

Each month, we make our scheduled mortgage payment, plus an additional principal-only payment.

We keep chipping away, month-after-month.  We have already shaved 6 months off of the length of our mortgage.

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We Have Paid Off 20% Of Our Mortgage – October Update

My wife and I continue to work hard to payoff our home mortgage.

As of the end of October 2013, my wife and I will have lived in our home for 3 years and 8 months.

We have paid off more than 20% of our mortgage balance!

We have a conventional, fixed-rate, 15-year mortgage and our goal is to pay off our mortgage in less than ten total years.

As of November 1, 2013, we will have made 44 regular, monthly mortgage payments.

We have also made several principal-only payments, too.

We usually make our mortgage payment on the first day of the month, but we made our November payment a few days early.

Additional principal-only payments are made throughout each month, as we earn additional income and find ways to decrease budgeted-for expenses.

Here is our most recent chart –

oct2013The chart shows two percentages:

The blue percentage is how much I still owe – the balance.

The red percentage is how much I have reduced – the paid.

This chart reflects how much of our mortgage balance we have paid – not how much we actually own. That percentage would be much higher.

While property values in our rural neighborhood have remained relatively stable, recent home sales in our area show a slight uptick in sales prices.

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Mortgage Payoff Progress For August 2013

My wife and I continue to work hard to payoff our mortgage.

As of the end of August 2013, my wife and I will have lived in our home for 3 years and 6 months.

We have a conventional, fixed-rate, 15-year mortgage and our goal is to pay off our mortgage in less than ten total years. We are behind on our goal – but working hard to achieve it!

As of September 4, 2013, we have made 42 regular, monthly mortgage payments.

We have also made several additional principal-only payments, too.

We usually make our mortgage payment on the first day of the month, but we made our September payment a few days later.

Additional principal-only payments are made throughout each month, as we earn additional income and find ways to decrease budgeted-for expenses.

Here is our most recent chart –

chart913

The chart shows two percentages:

The blue percentage is how much I still owe – the balance.

The red percentage is how much I have reduced – the paid.

This chart reflects how much of our mortgage balance we have paid – not how much we actually own. That percentage would be much higher.

While property values in our rural neighborhood have remained relatively stable, recent home sales in our area show a slight uptick in sales prices.

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