The first line in my budget is the biggest expense: our mortgage. As you know, I am working on eliminating this line item. I have changed my mind so many times on when I want to pay this off by that you are all probably sick of reading about it. However, since the threat of layoff emerged last month, my motivation to pay it off has increased. I know that I should be building an emergency fund in case there is a job loss in the near future, but eliminating this expense seems to be more comforting. Without a mortgage payment, we could live on less income and be okay if either one of us loses our jobs. Even if my husband loses his job in a year or two, the reduction in principle will allow us to refinance to a 30 year mortgage with more affordable monthly payment. Its all risky, but I’m oddly comfortable with this risk.
So, what’s the goal now? Four years! I know that sounds crazy, but I am super motivated. Instead of asking myself what expenses can I cut, the question now is, “What can I put on hold for the next four years while I pay off our mortgage?” Before I hesitated to get rid of kids’ activities and college savings. If they are still interested in piano in four year, we can restart it. In order for this four year plan to work, I need to find an extra $1,319.54 a month. Hopefully through the coming months, I can “find” this in our budget.
Here are the updated numbers on the Mortgage Payoff Plan:
|Maturity Date as of 4.2.2016||9/1/2035|
|Saved in Interest payment as of 4.2.2016||$4,807.90|
|Principal Balance as of 4.2.2016||$185,532.89|
|Length of time reduced from original loan||6 months|
As of today:
|Current Maturity Date as of 5.3.2016||5/1/2035|
|Saved in Interest payments to date||$8,203.62 (I’m loving this number)|
|Current Principal Balance||$182,838.39|
|Length of time reduced from original loan||10 months|
Looking at these numbers, I can’t help but to get excited!