In February of 2010 my wife and I purchased our very first home.Â We have a conventional 15-year mortgage and our plan is to pay it off in less than 10 years.Â Our stretch goal is to pay it off in less than 7.
As of September 16, 2011, we have made 18 regular mortgage payments â€“ and several, additional, principal-only payments.
When I posted Februaryâ€™s update, we had paid off 5.72% of our mortgage debt.
When I posted Marchâ€™s update, we had paid off 6.26% of our mortgage debt.
When I posted Aprilâ€™s update, we had paid off 6.90% of our mortgage debt.
When I posted Mayâ€™s update, we had paid off 7.35% of our mortgage debt.
When I posted June’s update, we have paid off 7.79% of our mortgage debt.
As of the end of August, we have paid off 8.67% of our mortgage debt.
Here is our most recent chart –
The chart shows two percentages.
The blue percentage is how much I still owe â€“ the balance.
The red percentage is how much I have reduced â€“ the paid.
Each month, a little bit more of our regular monthly payment goes towards principal and a little less goes towards interest.Â Right now, the split is roughly 55/45.Â Seeing 45% of our payment going towards interest really stinks.Â That’s why we are so committed to sending extra, principal-only micro-payments.Â Our mortgage is reduced, dollar-for-dollar.
This chart does not represent how much of my house I actually own. It simply reflects how much of our mortgage balance we have paid.Â We actually â€œownâ€ much more than 8.67% of the house, based on appraised value and initial down payment.
We have made 18 regular payments and have lived in the house for a year-and-a-half.Â Our contractual remaining term is 13 years and 6 months, but our actual remaining term is 13 years and 3 months.
Now that I have a new job, we’re still ironing out the wrinkles in our monthly budget.Â We’re unsure as to the exact amount we’ll have, each month, for debt reduction.Â We know that we can’t be as aggressive this year as we were last year, but we are still focused on our goal.Â Our steps may be smaller, but we’re still headed in the same direction.