Personal Finance

Me vs. The Mortgage Company – this is war!

I dislike not having SMART goals. In many ways, my mortgage payoff goal has become the bane of my existence. I can’t really tell if its because its not achievable or realistic, but it seems like I’ve set myself up for failure. Do I still want to do it? Heck yes! There’s one major barrier to my success: my loan company is the worst! From rejecting my principle payment of $8K to not allowing me to make biweekly payments that would apply towards interest, they are making paying it off early extremely hard. However this is actually motivating me to be done with them as soon as possible. I am going to win this war!

I was able to make a principal only payment today along with my regular mortgage payment. Here are the updated numbers:

Current Maturity Date as of 4.2.2016 9/1/2035
Saved in Interest payments to date $4,807.90
Current Principal Balance $185,532.89
Length of time reduced from original loan 6 months

The good news is that I finally have a plan in place. Yesterday, I opened up a new checking account solely for the purpose of paying off the mortgage. My paychecks will be direct deposited into this account. Throughout the month, I will snowflake/side hustle/save money and squirrel it away in there. My loan company will automatically transfer funds for my regular payment plus a principal only payment each month. The bad news is that my original calculations of needing an extra $770 were incorrect. The actual amount is $906.75. Yikes! I am giving myself 9 months to adjust our budget to factor in this amount. In the meantime, I’ll be using the $8k from my over-funded emergency fund as a buffer.

Does that sound SMART to you?


13 thoughts on “Me vs. The Mortgage Company – this is war!

  1. I applaud your determination! However, I still stand by my previous recommendation in your “Loan Info” post about telling them to shove it and start shopping around for a new mortgage lender (if that’s a reasonable option for you.) Otherwise, I certainly hope your new plan works out in your favor! 😀

    Liked by 2 people

      1. Yes! Closing costs as well mortgage insurance because currently we don’t pay any due to having a HELOC in the past. Because of the housing market crash, we have been upside for most of the life of this loan. 😦


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