Today is an exciting day in my project to pay off my mortgage. I have now paid off over $100,000 of the original mortgage balance. ($102,000 to be precise.) The balance is now sitting at $184,000. It feels pretty awesome! It took me 19 months to pay off the first $100,000 of the mortgage, which averages out to just over $5,000/month.
I also finally figured out how to make extra principal payments from my paycheck in the same month! I’m almost more excited about that. I get paid on the very last business day of the month, so I don’t want to initiate the extra principal payment that day or it will debit my checking account in the following month. What I did this month was once I saw my pay statement yesterday morning (the 30th), I initiated the extra principal payment. It then credited the mortgage overnight on the 30th and debited my checking account on the morning of the 31st. Granted, it came out before my paycheck went in which might be a problem for some people, but I have a pretty good buffer in there so it worked out great! This plan will only work for the months where the last business day is not a Monday, but in that case, I can make an underestimated extra principal payment (just like I did this month since I didn’t have my spreadsheet on hand when I realized I could do this) and even it out with the regular payment mid-month. Yay!
The above might sound slightly complicated, but to me, there’s a lot more reward in sending $X to savings/investments/mortgage when I see the money appear there in the same month my paycheck does. I don’t like February’s mortgage paydown being from January’s paycheck, etc. So I’m super excited that I finally figured out a way to do that!
Happy Friday everyone!