Sometimes, I don’t feel like making big payments to the mortgage and I would rather throw the money into investments. I mean, my interest rate is only 2.5% and the balance is a lot less scary now that it is down in the $150,000 range from the $280,000 range when I bought two years ago. For now, I am going to continue with the plan of paying off the mortgage. There’s no rhyme or reason to my wanting to throw money in investments instead of at the mortgage, so it’s probably just fatigue from working on a medium-term goal. Or maybe it’s a desire to see my investments go up faster instead of seeing the mortgage go down faster. I think I’m more motivated by seeing numbers go up than numbers go down! (Hmmm, if that’s the case, perhaps I should track my equity instead of tracking the mortgage balance. Well, I do both in my own spreadsheets.)
Every once in a while, I calculate how much extra I would need to pay on the mortgage each month in order to pay it off exactly before the rate resets. As of today, that number is around $2,700 and I’m only throwing $1,800 each month at the mortgage. By the end of this year, the required number should turn into only $2,200, which might be possible. And by the time of my bonus at this time next year, it should be down to around $1,600 and the mortgage balance around $80,000. So the question at that point becomes “Would I rather take a year to pay off the mortgage and put nothing into investments in that time OR pay off the mortgage exactly before the rate resets and put everything else into investments in that time?”
I’m not going to let myself re-evaluate how much I’m throwing at the mortgage until I have reached a point where I am throwing more at the mortgage each month from my paychecks than I need to to pay off the mortgage before the rate resets, since I don’t want to rely on my bonuses. After all, my original goal WAS to pay off the mortgage before the rate resets. It just turned out to possibly be possible to pay it off months/years before that happened.