Monday, December 30, 2019

Paying Down the Mortgage - January 2020 = 2.5 extra principle payments

I just made my January 2020 mortgage payment.  One of my goals is to pay down the mortgage by $20,000 this year.  I've always paid extra on my mortgage but in the last 2 years I really tried to focus on it.  I had originally planned on paying an extra 3 principle payments a month for all of 2018 and 2019 and then increase it to 4 extra a month for 2020.  Unfortunately in late 2018 the LoMY became ill and was diagnosed with cancer.  At the same time my job was suddenly at risk of being eliminated.  I did my best to keep up some sort of extra payment, however, because of all of that our priorities have changed a little bit.  LoML is all better now and for the moment my job is no longer threatened, but the new plan is to increase the emergency fund, max out the 401k, AND continue with a less intense focus on paying the mortgage down. A smaller goal is that we also want to do some home improvements that will make our home more comfortable and also more sell-able when and if that time comes.

All of that being said once today's payment posts the new total will be $96,555.69.  I'd ultimately love to pay this completely off within 5 years.  We shall see what life throws at us and if we can make this happen.

I do feel the need to explain that we live in a very modest home (1,800 sq ft), and drive 10+ year old paid for vehicles.  Now that we aren't paying for college and the kids are out of the house it is possible for us to live on very little of what we earn and make significant strides in increasing savings and in paying down our one and only loan, the mortgage.  We have always lived frugally regardless of income so for us this isn't a huge stretch. 

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