Progress to Date

  • Original Loan Amount: $204,000.00
  • Balance at Beginning of 5-year Goal (1/1/08): $188,983.82 @ 6.00%
  • Balance at Refinance in February 2009: $148,000.00 @ 4.625%
  • Outstanding Balance: $0.00 (PAID IN FULL!!!)
  • Latest Payment Date: April 2011
  • Latest Additional Principal Amount: $17,623.22
  • Amount Ahead of Schedule (since refinance): $121,462
  • Time Ahead of Schedule (since refinance): 7 years 10 months
  • Interest Saved Last Month: $23,972.48
  • Total Interest Saved: $28,435.55 ($1,037.74 on original mortgage; $27,397.81 on current mortgage)
  • Months Remaining in 5-year Goal: 20
  • Average Monthly Principal Needed to Meet Goal: N/A (Goal achieved)
  • Progress List Explained

Wednesday, August 15, 2012

Fin

After going a full year without an entry, I think it's time to officially close the book on this blog.

Before I sign off, here are a few final comments, in no particular order.

First, not having a monthly house payment is a great thing.  I highly recommend it.  After paying rent for seven or eight years and then making mortgage payments for almost a decade, I can say without hesitation that I would much rather live with no rent and no mortgage than under any other scenario.  Our largest monthly expense now is Savings, followed by Food.

I don't regret for a second that we chose to pay off the mortgage instead of funneling our extra "mortgage-killing" cash into investments.  We spent just over three years aggressively paying down our mortgage.  Now that it's gone, we have a lot of extra cash in the monthly budget to use for saving and investing.  And that's what we are currently doing.  I can live with the hypothetical "lost opportunity" of not being invested in stocks (or bonds or whatever) during those 40 months.  It's much better to see that our long-term liabilities are $0.

Since April 2011, we've grown our savings by more than $60,000.  We also fully funded our IRAs using another $10,000 ($5,000 each) and bought a new (used) car -- paid with cash.  This is evidence of the increased cash flow that comes from two full-time incomes and no mortgage payment.

We've mostly retained our more-frugal habits that we picked up when we began the mortgage-killing project.  On the occasions that we do splurge, we don't feel like we're destroying the monthly budget because we're currently saving more than 50% of our take-home pay.

We are truly homeowners.  We are not home-borrowers.  We are Home Owners.  And we earned that title.

So what's next?  I admit, it was tough to get a new focus once the debt was paid.  We began dumping money into savings without any clear plan of attack.  It took about a year of living in the new mode before we started seriously discussing our next move.  But I'm not going to go into detail here.  I'll be continuing the journey on a new blog.  Perhaps you will join me there.

10 comments:

jasonhmann said...

Your posts have been motivating. My soon to be wife and I want to also pay off the mortgage, we have a road ahead of us. Best luck of with the new blog, death to the job, hopefully you will find a career of your choice after. Thanks for also directing us to networthiq, it has proved to be a useful tool to see progress. With Esteem J

Anonymous said...

I just recently found your blog and have read the past entries with great interest. My family is on the path to mortgage-free living, so thanks for the motivation. Loved all the number crunching detail too! All the best with your new blog!

John Jennings said...

Very nice indeed.

Javier Bonnell said...

I definitely agree – not having a monthly house payment is a great thing! You were pretty quick with getting rid of your mortgage payment in just 3 years. 3 years! You must have a great mortgage-pay-off strategy. That’s definitely a nice piece of inspiration and motivation for homeowners who are having a difficult time dealing with theirs. We are homeowners, not home-borrowers. Nice! :]

Richard@PI Professional Indemnity Insurance for Mortgage Brokers said...

Congratulations that's an admirable milestone to have achieved. I must say I admire the tenacity and focus with which you attacked this goal and the one set out on your new website (which I will be aiming to follow after the closure of this one!).

Anonymous said...

Just stumbled on this blog. You did very well indeed. I paid off my 23 year mortgage in 6 years. I found that after I paid the mortgage off I drifted a little without that goal that had been my constant companion for 6 years. And like you it's taken me about a year to figure out what to do next. Funnily enough that's also to quit my job - I'll be leaving at the end of the year. I'm not sure whether to blog about it or not though. There seems a lot of blogs out there that cover this area. Any advice?

The Executioner said...

Anonymous, sadly I have no advice to offer. I am saving for the day I can quit my job, but I'm not quite there yet. Hope you find your path soon.

Shawn said...

Did you make your spreadsheet available anywhere for us to download? I'm starting my own mortgage journey and would like to have a good start on a spreadsheet to track progress.

The Executioner said...

Shawn -- no, I never did publish that. I'll work on that.

Shawn said...

Great, thanks!