Milestone Achieved: Over $100,000 of Mortgage Paid

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!

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28 thoughts on “Milestone Achieved: Over $100,000 of Mortgage Paid

  1. ROCK IT OUT!!!! Great work. I am about the cross the only have $100K left to pay on my mortgage…. However, my basis was smaller than your to begin with.

    Have a great weekend!!

    • Haha :) you should! I’ve actually started using Mint, not for budgeting, but to make checking if transactions have posted / balances easier with many accounts. Well and my boyfriend uses it, so if we’re both using it, it’s easier to compare spending than with my different categories.

    • I do! My original target was five years from purchase, i.e. before the rate reset. I’m now targeting the end of next year, 2015.

    • The closets are installed and they are wonderful!!! If I hadn’t had them installed, I would have hit this milestone in December, oops.

    • Yay! It feels strange that I’ve now paid down more of my mortgage than my parents’ first house cost (and my 20% down payment was almost as much as the entire value of their first house).

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