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cv91915

My Early Mortgage Repayment Thread

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The results of the additional July payment described in the previous post were dramatic, knocking out almost 85% of the existing balance.

 

4AmPA2V.png

 

 

 

mYs4ntB.png

 

 

Just 7% of the original balance remains.

 

If we had made regular payments only we would still owe 92% of the original balance.

 

In order to reach our current balance with regular payments only, it would have taken until January of 2045.  :lol: 

 

So far, we've eliminated ~25.5 years of payments on a 30-year mortgage.

 

Edited by cv91915

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With only 7% left, I assume that this will be paid off in rather short order.  What is the plan at that point?  Just start swimming in your cash like Scrooge McDuck?

Edited by CTSoxFan

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28 minutes ago, CTSoxFan said:

With only 7% left, I assume that this will be paid off in rather short order.  What is the plan at that point?  Just start swimming in your cash like Scrooge McDuck?

Barring the unforeseen, the rest of the mortgage balance will be gone by the end of the year.

 

Next step is revising our retirement goals to be even more aggressive, and then mapping out a plan to retire with more money in a shorter time frame.

 

Not that we've been particularly deprived, but I've also started to make a concerted effort to enjoy our resources a bit more...  I kicked this off a couple of weekends ago by picking up my first new vehicle since 2011. 

 

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5 hours ago, cv91915 said:

 

Not that we've been particularly deprived, but I've also started to make a concerted effort to enjoy our resources a bit more...  I kicked this off a couple of weekends ago by picking up my first new vehicle since 2011. 

 

This is the balance that we try to strike.  Make sure we are adequately saving for our retirement, but also remembering to enjoy today as well.  You never know what life will deal you and all the money in the world is useless if you can't enjoy it.

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On 7/6/2019 at 4:08 AM, cv91915 said:

Wpuwmha.jpg

Since we are so close to paying off the mortgage, I'm thinking of redirecting these minor exploits toward the lease on our new car.  :lol:   

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3 hours ago, cv91915 said:

Since we are so close to paying off the mortgage, I'm thinking of redirecting these minor exploits toward the lease on our new car.  :lol:   

There is no financial* advantage to doing that, as you will still pay the same amount over the term of the lease.  You'd be better off putting it into an account earmarked for expected maintenance costs such as wipers, tires, etc.

 

*The feeling of not having a car payment is not financial.

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9 hours ago, CTSoxFan said:

There is no financial* advantage to doing that, as you will still pay the same amount over the term of the lease.  You'd be better off putting it into an account earmarked for expected maintenance costs such as wipers, tires, etc.

 

*The feeling of not having a car payment is not financial.

I wasn't planning to make extra payments, I was planning to move the couch cushion money over to the Discovery Debit account as it comes in.

 

Then, as the lease payment date approaches, I'd only have to pull the remainder from funds in our household operating account.

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On 6/29/2019 at 7:50 AM, cv91915 said:

The results of the additional July payment described in the previous post were dramatic, knocking out almost 85% of the existing balance.

 

4AmPA2V.png

 

 

 

mYs4ntB.png

 

 

Just 7% of the original balance remains.

 

If we had made regular payments only we would still owe 92% of the original balance.

 

In order to reach our current balance with regular payments only, it would have taken until January of 2045.  :lol: 

 

So far, we've eliminated ~25.5 years of payments on a 30-year mortgage.

 

After I made this large payment I had the remaining balance recast again (reamortized over the remaining ~27 years).

 

As of today the recast is complete, and as of 8/1 our mortgage payment (P+I) is $LOL.61.

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We are down to 6% left.

 

Recap of Notable Dates:  

 

June 2014:  Purchased the Mud Hut

June 2016:  Refinanced into our current mortgage

June 2017:  97% of current mortgage balance remained

June 2018:  77% of current mortgage balance remained

June 2019:    7% of current mortgage balance remained (as of 6/28)

June 2022: Target for paying off the current mortgage

 

Right now we are at least two years ahead of schedule on what I originally considered to be an aggressive repayment goal.

 

 

kcokr9C.png

 

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Another $76.76 found between the Bank of America couch cushions is queued up for the 9/1 additional principal payment.

 

Cash Rewards Visa (rewards earned on August statement):

 

Ni13IxG.png

 

Travel Rewards Visa (rewards earned on August statement):

 

lpqHo2w.png

Edited by cv91915

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8 hours ago, cv91915 said:

Another $76.76 found between the Bank of America couch cushions is queued up for the 9/1 additional principal payment.

 

Cash Rewards Visa (rewards earned on August statement):

 

Ni13IxG.png

 

Travel Rewards Visa (rewards earned on August statement):

 

lpqHo2w.png

 

 

+ $49.65 from Ebates = $126.41

 

qo0ftZ0.jpg

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Goal Recap:

 

Fully repay the mortgage on our primary residence in 8 years from the date of purchase.

 

Key Milestones:

 

June 2014 - purchased primary residence

June 2016 - refinanced (lowered the rate and took cash out to pay down the higher-rate mortgage on our second home)

Dec  2017 - Second home fully repaid, monthly P+I amount redirected to this mortgage

June 2022 - mortgage repayment goal (8 years from home purchase)

 

Methodology:

 

Redirect all unallocated funds to mortgage principal monthly (after fully contributing to all savings / investment / retirement goals, and after meeting all household obligations and discretionary expenses).

 

Status:

 

95% of the principal will be repaid as of the 9/1 payment.

 

Full repayment by the end of 2019 is within reach (5.5 years from the purchase date of the home, and 2.5 years ahead of our goal).

 

If we had made regular payments only, we'd still owe 92% of the original balance (vs. 5% actual).

 

 

rV4I5aR.png

Edited by cv91915

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This arrived in the mail while we were on vacation...  In May of 2018 I opted in to a class action lawsuit against LendingClub.

 

$112.76 queued up for 10/1.

 

0sO1E6R.jpg

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On 9/14/2019 at 5:51 PM, cv91915 said:

This arrived in the mail while we were on vacation...  In May of 2018 I opted in to a class action lawsuit against LendingClub.

 

$112.76 queued up for 10/1.

 

0sO1E6R.jpg

 

 

Dividends from one of my ESPP accounts, queued for 10/1.

 

KnZyWaT.png

Edited by cv91915

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On 9/14/2019 at 2:51 PM, cv91915 said:

This arrived in the mail while we were on vacation...  In May of 2018 I opted in to a class action lawsuit against LendingClub.

 

$112.76 queued up for 10/1.

 

0sO1E6R.jpg

 

On 9/17/2019 at 4:29 AM, cv91915 said:

 

 

Dividends from one of my ESPP accounts, queued for 10/1.

 

KnZyWaT.png

 

I went into full vagrant mode, and took several garbage bags full of aluminum cans (that were cluttering the garage) to the recycling center.

 

Bwt4JsA.jpg

 

No plans (currently) to sell plasma to bring down the mortgage balance, but never say never.

 

Since I had already pretty much hit rock bottom, while I was out I also picked up some groceries at ALDI and bought four wire whisks at a 99 Cents Only store.  

 

 

 

Edited by cv91915

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On 9/14/2019 at 2:51 PM, cv91915 said:

 

0sO1E6R.jpg

 

On 9/17/2019 at 4:29 AM, cv91915 said:

 

KnZyWaT.png

 

On 9/21/2019 at 12:15 PM, cv91915 said:

 

 

I went into full vagrant mode, and took several garbage bags full of aluminum cans (that were cluttering the garage) to the recycling center.

 

Bwt4JsA.jpg

h8wWV9E.png

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I am pleased to report that we have exceeded our goal of repaying this mortgage by June of 2022.

 

We burned through this 30-year mortgage (a cash-out refi that brought our LTV back up to 85%) in just 64 months.

 

giphy.gif

 

 

If we had only made regular payments, we would still owe 92% of the original balance, and it would have taken until June of 2046 to pay off the loan.

 

GlcQCnq.png

 

 

Milestone Recap:

  • June 2014:  Purchased the Mud Hut when we relocated to another city.
     
  • June 2016: Refinanced the mortgage and took cash out up to 85% LTV.
     
    • Dumped the proceeds onto the higher-rate mortgage on our second home, which was fully repaid in December of 2017
    • This allowed us to focus our extra resources on this mortgage, which was our only remaining debt.
       
  • June 2017:  97% of the mortgage balance remained.
     
  • June 2018:  77% of the mortgage balance remained.
     
  • June 2019:    7% of the mortgage balance remained.
     
  • Oct   2019:  Goal achieved.
     
  • June 2022: Target for paying off the current mortgage
     
  • June 2046:  End of the regularly-scheduled payments for the 30-year term for this mortgage.

 

 

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On 7/5/2018 at 10:42 AM, CTSoxFan said:

Your progress is a concrete example of how just paying off a little extra each month can make a significant difference.  For example, if you pay your mortgage bi-weekly rather than monthly (which basically amounts to 1 extra payment/year) you will knock ~7 years off a 30 year mortgage.

I’m planning on sending my mortgage payment ($1052.97 in Feb 2020) twice. I’m thinking this will get me paid off quickly. I’ll have to figure out how many months?

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On 12/2/2018 at 10:51 AM, cv91915 said:

The recast process is complete.  Our 12/1 P+I payment dropped by about 1/3.  

 

We are going take the amount of the reduction and apply it as extra principal going forward.  

 

Recasting doesn't save money on interest, but it is pretty novel to have a mortgage payment this small.  :)  

Sorry but what is P&I?

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On 2/13/2019 at 11:40 AM, IndyPoolPlayer said:

Has he EVER worked since becoming a US citizen? Did he maintain dual citizenship with the UK? As I said in the other thread, reverse mortgages are very predatory. As bad as the "senior life insurance" which is another predatory ripoff. Off the top of my head, one option could be if you pass away, leave him enough for a one way plane ticket back to the UK, and have the NHS take care of his medical issues, he could collect his UK pension, and likely qualify for Council Housing there.

 

Even if you get the house paid off, he'll still have taxes and utilities to maintain. You're 65 now are you planning on working until you're 80 or later? If you have any retirement plans (401K, IRA) you'll be required to start drawing on those in about 5 years at 70-1/2. Not to mention if there are ever any cutbacks or furloughs you'll likely be the first to go as you won't be eligible for unemployment as you'll be considered as retired and not unemployed.

We inquired into his U.K. work history. They claim they don’t have him listed as a past employee. He worked for the council....the government. Yes he has dual citizenship....you can do that with the U.K. we have $30,000 in savings but he hates the thought of going back there....not a fan of their system. 
anyway NO I’m a nurse and work full time....hope to retire, take my SS payment and still work. Apparently if I work until 66, I can work as much as I want and still collect SS. 
I hope to retire ....stop working, at 70.

oh the U.K. pension....it’s only redeemable if you Live in the U.K.....so that’s off the table. He loves the USA.

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On 2/13/2019 at 11:40 AM, IndyPoolPlayer said:

Has he EVER worked since becoming a US citizen? Did he maintain dual citizenship with the UK? As I said in the other thread, reverse mortgages are very predatory. As bad as the "senior life insurance" which is another predatory ripoff. Off the top of my head, one option could be if you pass away, leave him enough for a one way plane ticket back to the UK, and have the NHS take care of his medical issues, he could collect his UK pension, and likely qualify for Council Housing there.

 

Even if you get the house paid off, he'll still have taxes and utilities to maintain. You're 65 now are you planning on working until you're 80 or later? If you have any retirement plans (401K, IRA) you'll be required to start drawing on those in about 5 years at 70-1/2. Not to mention if there are ever any cutbacks or furloughs you'll likely be the first to go as you won't be eligible for unemployment as you'll be considered as retired and not unemployed.

I was told there is no penalty for withdrawing money from my 401K....about $11,000. There at the moment. I contribute 7% and employer contributes....not totally sure honestly. How would I be considered retired if I keep my FTEs- 73hrs every 2 weeks?

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