So the master plan is to have my mortgage gone by November 8th
2017. I chose that date because that
is the day that my 5 year term expires.
I have a pretty good interest rate at the moment, 3.09%, which will
likely go up once my term expires.
Why the big rush? Well to
start with I don’t like paying interest.
Add to that the desire to own my entire home not just a portion of it to
the freedom it would give me not to have mortgage payments and you probably see
the attraction too. So can it be
done? Lets take a look.
Outstanding balance Feb 17th 2013 - $149,085.90
Original monthly payment - $646.62
Current required payments (thanks to the allowed 10%
increase) - $711.28
Actual monthly payment (current payment can be doubled up each
month without penalty) - $1,422.56
Current savings towards extra payments - $5,744.67
March 2013 – Nov 2013
|
||
Budgeted for Mortgage
|
$646.62
|
$5,819.58
|
10% Debt Repayment
|
$359.00
|
$3,231.00
|
Long Term Disability
|
$860.00
|
$7,740.00
|
Other
|
(Veterans Disability Payment + Current Savings)
|
$25,744.67
|
Monthly payments
|
$1,422.56
|
$12,803.04
|
10% Lump Sum
|
$15,200.00
|
|
Difference
|
+ $14,532.21
|
|
Outstanding balance Nov 8th 2013 - $124,386.33
Required payments (thanks to the allowed 10% increase) -
$782.40
Actual monthly payment (required payment can be doubled up
each month without penalty) - $1,564.80
Savings towards extra payments - $14,532.21
Nov 2013 – Nov 2014
|
||
Budgeted for Mortgage
|
$646.62
|
$7,759.44
|
10% Debt Repayment
|
$359.00
|
$4,308.00
|
Long Term Disability
|
$860.00
|
$10,320.00
|
Other
Savings
*Unused car payment $
|
$14,532.21
$200/mnth
|
$16,932.21
|
Monthly payments
|
$1,564.80
|
$18,777.60
|
10% Lump Sum
|
$15,200.00
|
|
Difference
|
+ $5,342.05
|
|
*I hope to continue without a car as long as practical and
affordable. By Nov 2013 I should
be able to divert $200/mnth from my transportation budget as I will have
$10,000 put aside to buy a car.
Outstanding balance Nov 8th 2014 - $93,966.72
Required payments (thanks to the allowed 10% increase) -
$860.64
Actual monthly payment (required payment can be doubled up
each month without penalty) - $1,721.28
Savings towards extra payments - $5,342.05
Nov 2014 – Nov 2015
|
||
Budgeted for Mortgage
|
$646.62
|
$7,759.44
|
10% Debt Repayment
|
$359.00
|
$4,308.00
|
Other
Savings
Unused car payment $
*Unused Emergency $
*Unused Travel $
|
$5,342.05
$200/mnth
$190/mnth
$150/mnth
|
$11,822.05
|
Monthly payments
|
$1,721.28
|
$20,655.36
|
10% Lump Sum
|
$15,200.00
|
|
Difference
|
- $11,965.87
|
|
* By Nov 2014 my emergency fund should be fully funded
allowing me to divert $190/mnth from life to my mortgage. With travel I’m planning two big trips
in the next 2 years after which most of my travel budget can go to my mortgage
Outstanding balance Nov 8th 2015 - $72,656.47
(this is the first year I will not be able to make the full 10% lump sum
payment)
Required payments (thanks to the allowed 10% increase) -
$902.70
Actual monthly payment (required payment can be doubled up
each month without penalty) - $1,805.40
Savings towards extra payments - None
Nov 2015 – Nov 2016
|
||
Budgeted for Mortgage
|
$646.62
|
$7,759.44
|
10% Debt Repayment
|
$359.00
|
$4,308.00
|
Other
Savings
Unused car payment $
Unused Emergency $
Unused Travel $
|
$0
$200/mnth
$190/mnth
$150/mnth
|
$6,480.00
I will only have $1,545.62 to put against the mortgage
monthly
|
Monthly payments
|
$1,805.40
|
$21,664.80
|
10% Lump Sum
|
$15,200.00
|
|
Difference
|
- $18,317.36
|
|
Outstanding balance Nov 8th 2016 - $56,060.08
(this is the first year I will not be able to make the full monthly payments
and the 10% lump sum payment)
Required payments (thanks to the allowed 10% increase) - $992.97
Actual monthly payment (required payment can be doubled up
each month without penalty) - $1,985.94
Savings towards extra payments - None
Nov 2016 – Nov 2017
|
||
Budgeted for Mortgage
|
$646.62
|
$7,759.44
|
10% Debt Repayment
|
$359.00
|
$4,308.00
|
Other
Savings
Unused car payment $
Unused Emergency $
Unused Travel $
|
$0
$200/mnth
$190/mnth
$150/mnth
|
$6,480.00
I will only have $1,545.62 to put against the mortgage
monthly
|
Monthly payments
|
$1,985.94
|
$23,831.28
|
10% Lump Sum
|
$15,200.00
*$1,909.99
|
|
Difference
|
- $20,483.84
|
|
*If I succeed in making all my extra payment options the last
year I would only need to make a 10% lump sum payment of $1,909.99
Outstanding balance Nov 8th 2017 - $38,946.90
Hmm. $38,946.90
left over, what a pesky number.
We’ll talk about what I intend to do with that tomorrow.
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