It’s a celebration!
Germaine and I are officially under $50,000 on our mortgage balance.
Our recent extra mortgage payment reduced our balance to $48,972.96!!
We’ve been consistent at putting extra money on the mortgage even during the quarantine when our incomes decreased. We had to decide whether to increase our emergency fund last year from three months to six months of savings or keep making extra mortgage payments.
We decided to keep making extra mortgage payments. That resulted in 85% of our payments for the year going to principle rather than interest.
It turned out we didn’t have to touch out emergency fund even with the fluctuations in our income and we were able to put a big dent in our mortgage balance. Last year we put an extra $10,317.75 towards our mortgage principle in addition to what goes to the principle on every monthly payment.
Do We Make Extra Mortgage Payments Every Month?
No we don’t.
In 2020, we made extra mortgage payments 7 months out of 12 totaling $10,317.75. The total paid including the principle in our monthly payment was $15,287.53.
We will make another principal payment this month and share an update you won’t want to miss.
To ensure you see it, subscribe to our newsletter and you’ll also get exclusive product discounts, in depth homemaking, wealth building, food & travel tips!
We’re determined to pay off our home by December 2021 and be mortgage free. It’s going to take hard work and sacrifice, but I know we can do it. Here are five things you should know if you are embarking on an early mortgage payoff journey.
5 Things you should know about paying your mortgage off early when you’re not rich.
1- It’s hard.
2- It requires discipline.
3- You’ll have to sacrifice something to do it.
4- You’ll need to budget every dollar you make.
5- Balance reduction is slow at first, but accelerates over time.