2015 Mortgage Payoff Plan

With my current savings calculations, I’ll have about $2,788.33 leftover if I pay off my mortgage at the end of 2015. My current plan involves making the following extra payments to stay on track:

February 28th: $18,710.71 – net of my signing bonus and savings from February paychecks

March 31st, April 30th, May 31st: $1,873.21 – savings from paychecks

June 30th: $25,873.21 – emptying my savings account down to $20,000 and savings from June paychecks

July 31st, August 31st: $1,873.21 – savings from paychecks

September 30th: $11,461.73 – a small bonus and savings from September paychecks with Social Security tax done with for the year

October 31st, November 30th: $2,542.42 – savings from paychecks

December 31st: $66,906.33 – savings from December paychecks, plus the proceeds of selling all of my ESPP funds (which my honest plan is to sell them as soon as the holding period is up, but I don’t know when that’ll be so for now I’m assuming I’ll just sell them all at the end of the year), emptying my savings account, selling my Series I Savings Bonds, and my taxable investments. I’m not completely sold on the idea of selling the taxable investments since I would then end up re-buying them at a higher cost basis not long after, so it would seem a waste of paying the capital gains taxes. If I don’t sell the taxable investments, then I’ll make a $33,252.89 extra payment in December (also leaving my savings account in place) and make a few more payments early in 2016:

January 31st (2016): $1,873.21 – savings from paychecks

February 29th (2016): $6,377.71 – a small bonus and savings from paychecks

March 31st (2016): $22,182.55 from savings from paychecks and emptying my savings account would leave $321.25 remaining, which I could then just pay off since there is $1,027.32 in the budget for the required mortgage payment :)


This is my only real goal for 2015 financially – paying off the mortgage. We’ll see how that ends up going. I’ll make my 2015 Roth IRA contribution in February from my savings account, but I won’t worry about the 2016 contribution until 2016. I’ll also contribute the maximum to my 401(k), contribute a bit to my Health Savings Account (my employer will contribute quite a bit, so I don’t “need” to contribute that much), and contribute to my Employee Stock Purchase Plan with a good discount, which I’ll then sell later to pay down the mortgage. I’ll come up with a more specific investment plan for the year later, but this is my general plan.

Readers, what is your plan for your finances in 2015?


16 thoughts on “2015 Mortgage Payoff Plan

  1. I still have to think up a plan. I don’t own a house, so no mortgage “problems”. I have managed to save more than 10k euros from my salary this year; next year I’ll try to up that. I’ll reach roughly 65k in savings by the end of 2014 (still waiting for the last paycheck to come in), so maybe I’ll aim for having 85k or more by the end of 2015 (which would be contributions plus growth). Reaching 90k would be a stretch goal but might be possible as well…

    Your goal to pay off the mortgage sounds great. I would probably leave the taxable investments that you have, and accept that it may not be possible to pay the mortgage off completely before the end of 2015. Leaving a few thousand dollars for 2016 aint so bad, I think? I hope it will be smooth sailing!

    • Trying to increase your savings year over year sounds like a good goal :)

      I think I’m okay with emptying my savings account to pay off the mortgage, but not to sell investments that I have to pay taxes to sell and are earning more than the mortgage. I’ll make a final decision on that though when that’s even a possibility.

  2. Paying off your mortgage sounds like a great goal!

    For me, finances for 2015 include:
    1. Buy a house (20% down + closing costs + furniture + etc)
    2. Hopefully still manage to increase my net worth by 60K (current projection including house costs) or 80K if I end up switching jobs and there isn’t a market crash in 2015
    3. Based on 1+2, try to hit a net worth of 205/225Kish (for 60K/80K increases, respectively).

    • Thanks! I’m pretty excited to see it gone soon and the end in sight!

      Good luck with your house search! Everyone I know who has bought one has spent months looking, myself included. It’ll be exciting toget over $200k in net worth! I think I was more excited about that number than $100k.

  3. We’re going to stop prepayment with my last paycheck this summer. I also just tinkered with the 2015 403b so I’m only doing traditional version (no Roth) and I’m going to max it out with this semester’s paychecks so I have bigger paychecks coming my way next year when I’m on half salary and 2-3x expenses.

  4. Such a showoff ;)

    JK great progress. My only goal in 2015 is to boost my net worth by $36,500 — and pay for my wedding & vacations without dipping into savings!

    • Haha ;) I’ve always said that one of the reasons I decided to pay off the mortgage so early was because I can and it’ll be gone quickly. I probably wouldn’t have thrown everything at it for ten years, but 3.5 didn’t seem so terrible.

      Saving $36.5k and not dipping into savings for your wedding and vacations is good! I know that getting married will probably put a damper in my savings plans whenever I get around to that. That’s okay though!

  5. That’s an awesome plan set in place. Personally, I am not sold on the idea of you selling your taxable investments either. It just doesn’t quite make sense as long as you’re under your 5 years. I’m opting for you to have $33k left on your mortgage at the end of 2015 :) Just my two cents!

    As for me, I’m hoping for a net worth increase of about 29k, maybe more if things happen. But I’m gunning for that. Get rid of my debt, bulk up my EF, and continue plugging along with my employer retirement account.

    • Thanks Alicia! Even if I don’t use the taxable investments to pay off the mortgage, it’ll be pretty awesome when they are worth more than my mortgage!

      You’re doing great with your progress! I’m keeping my fingers crossed that you will finish paying off your credit card debt in 2015 :) and that employer retirement plan of yours is plugging along quite nicely! Forced retirement savings can be so great!

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