Can I pay my mortgage off in 2015?

I’m going to be a bit slow in setting my 2015 goals with some job stuff out in the air. Last year, I set a goal to pay off my mortgage by the end of 2015. I’ve also doubted this plan occasionally. Now that we’re a year in on that plan, how am I doing?

After making my November mortgage payment, the balance is sitting at $147,700. I will make no additional payments until I start a new job so my mortgage balance will sit at $147,000 after the regular December mortgage payment is made. That post from last November calculated that I would need to have a balance of $91,284.28 at the end of this year in order to pay the mortgage off at the end of 2015.

I still think it’s possible. Or so my spreadsheets say. I’ve been following a more irregular repayment plan the last few months than I was. My income in 2014 turned out to be a bit under my optimistic projections. I will likely end up with an unpaid break between jobs. I still don’t have an accurate picture of my 2015 savings plan. But I’m still optimistic that I can pay off my mortgage in 2015, based on my current income predictions.

My plan all along has been to empty my savings account and possibly other non-retirement investments in order to pay off the mortgage entirely. My calculations show that with the mortgage paid off, I’ll be able to save $4,500/month after maxing out my 401(k). All of my past “emergencies” have cost under that amount: my car getting broken into, needing to move on short notice, and non-emergencies such as last-minute trips. Plus, any medical issues should be covered my Health Savings Account funds. Future emergencies could include replacing any number of the 10+ year old appliances in my condo, but unless they all break at once, $4,500 should suffice to replace the dead one(s). That means that emptying my emergency fund to pay off the mortgage isn’t that scary, especially considering that I will be saving just over 2 months’ expenses each month with the mortgage gone.

I’m still going to make my 2015 Roth IRA contribution at the beginning of the year and max out my 401(k) for the year, especially since it’s looking like the mortgage will be paid off very cautiously in December if it is paid off in 2015. I’ll hold off on making my 2016 Roth IRA contribution though until the mortgage is paid off in full.

Here’s to ending 2015 with no mortgage!


16 thoughts on “Can I pay my mortgage off in 2015?

  1. I think you’re well on your way. If by chance you miss the mark by few months, no worries. You would still be paying off your mortgage how early?

    All the best,
    The Stoic

    • Thanks! I took out the original mortgage in June 2012 and the rate on the current mortgage will reset in January 2018, so I’ll be paying it off after about 3.5 years.

  2. Good luck!

    I think we’re going to hold on to ours for a while longer, even though our balance is lower. I wanna be able to not be stressed out about living in paradise on half-pay for a year!

  3. When is your rate reset again? Do you have an idea of how quickly the rate can change?

    Good luck meeting your end of 2015 goal – and even if you don’t quite make it due to getting a new job it’s not the end of the world.

    • My rate will reset in January 2018. It can go up to 7.5%. Thanks! I have been a bit hesitant about making too firm of a goal when I am not 100% confident I’ll meet it. On the other hand though, when you do set a goal, you’re more likely to come close to hitting it even when you don’t fully than if you don’t set a goal.

    • Hahaha well my spreadsheet currently shows me having $5-15k above my end of year mortgage balance, so we’ll see what happens between now and then. I’m sure going to give it a good shot ;)

    • Thanks Holly! If I don’t pay it off in 2015, it’ll be early 2016! I can’t wait to have no more mortgage and to reduce my fixed expenses by about $12,000/year. I’ll have paid off $286,000 in mortgage debt in 3.5 years if I succeed in paying it off next year, which would be pretty freaking awesome!!!

  4. Heck, you’re a machine and kick some major butt. Honestly, I think as long as you’re mortgage-free by the time Jan 2018 comes, along with your balloon payment (is that what it’s called? I’m not familiar with those kind of mortgages) you’re golden. It’s an ambitious goal, and I know you’re driven, but in the grand scheme of things if you miss it by a few month (Dec 2015) you still have 2 years of cushion :)

    • It’s not a balloon payment, it’s that the interest rate will reset and could go up to 7.5%. It’s sort of like a possibly ballooning interest rate :) I totally agree with you that so long as I’m mortgage free by the time January 2018 comes around, I’m good. Part of me at this point wishes I had locked in a 15 year fixed rate mortgage, but I thought the payment was too high on my income 3 years ago, so I took out a 5/1 ARM instead. (It would have made the payment about $700/month more than the 5/1 ARM.)

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