June 2019 Mortgage Paydown Update

June is coming to a close, and so is our monthly mortgage paydown. We closed on our new cabin on May 31st, and this month I’ve solely been focused on paying it down as quickly as possible. Interest at the beginning of loans is killer! Our South Carolina home is on the market and we are praying that it might sell before too long.

We purchased our cabin for $200,000. After putting 5% down, our loan was for $190,000. We are now sitting at $184,980.

Looking at our amortization schedule, we have paid the equivalent of 20 payments! If we had made the first payment only, our balance would have gone down only $240 or so.

I’m going to be on attack mode to skip as much interest as possible. Once our previous home sells, we should be sitting in a nice spot.

This kind of paydown has been made possible with the Lord’s help and lots of saying “no.” We have been on this debt-free journey for around 2.5 years now, and it has been so worth it.

Mortgage Update (4/17/19): $138,500 To Go!

We now owe $138,500 on our home! We purchased our house for $255,000, and our starting loan balance was $242,250. After paying our mortgage down $40,000 once our previous residence sold, the remainder of the balance has been paid with a lot of sacrifice.

Seeing this number fall while our net worth grows is an amazing feeling!

This is our second additional principal payment of the month.

Paying additional principal towards your mortgage is so worth it! Our mortgage company provides a chart that explains just how much interest we could save by sending in just an additional $50 to $200 per month.

Take a look at these numbers, ladies! Amazing stuff happens when you add a zero or two to their suggestions. This chart is specific to our mortgage, but I bet yours would look the same, or even better!

We are currently passionate about paying down our mortgage because we know by doing so we are changing our family tree in a big way. Our house is small for our family size. I would love to upgrade one day, and our strategy might eventually change from paying down our mortgage to boosting our savings. But for now, we want to kill as much interest as we can.

We are so excited to be in the $130,000s!

Mortgage Paydown Week is Here! (4-14-19)

Ah, our mortgage payoff week is here! It seriously feels like my birthday every two weeks. Watching our principal number fall is amazing! Lord willing, we will be in the $130,000s by the end of the week. We were in the $240,000s less than two years ago, and being at this point today still doesn’t quite seem real!

We track our mortgage pay down closely by using the amortization schedule we received at closing. We put 5% down on our home which was purchased for $255,000 on August 25, 2017. By December, we had knocked out our PMI after our house in Georgia sold. We then declared war and have been putting whatever we can towards our mortgage.

Being both debt free otherwise and pretty frugal have helped us tremendously. Our finances wouldn’t look like they do now without many sacrifices and cuts to our lifestyle.

So here’s to reaching the $130,000’s. I will post another update later in the week.

Have a fabulous week, y’all!

Our Mortgage Pay Down Report – First Quarter 2019

Ah, I can hardly believe we are $18,498 lighter than we were in December. It is an amazing feeling!

The first quarter of 2019 was a good one for us. The profit from my Etsy shop was able to cover our food budget along with a few other bills and our extras, like an anniversary camping trip. We also utilized part of our tax refund to pay down our mortgage. While I know it isn’t always ideal to receive a refund, since we are given so many child tax credits with eight kids, it is inevitable at the moment. If you do receive a refund, I’d love to encourage you to spend it wisely.

We have lots of extras on the horizon, including two birthdays and a graduation. April probably won’t be as good to us as March was.

I often use an early mortgage payoff calculator to play around with numbers. You can find my favorite one here. It is super simple. All you do is input your payment information along with how quickly you would like to pay off your mortgage. It then let’s you know how much extra you should send to your principal to achieve your goal.

Three years ago we were living paycheck to paycheck and I never guessed this would one day be our reality. Believe me, if we can do it, you can!

We Now Own 44.75% of Our Home

After our latest mortgage principal payment, I took a look at our amortization schedule and realized we now officially own 44.75% of our home! I base this figure strictly on our home’s original purchase price, so the percentage is most likely a bit larger in actuality. It is motivating to see this number climb upwards!

While I would love to look at this number from the perspective of what our home is actually worth now, I believe it is better for me to look strictly at this from the original purchase price perspective since it is a better gauge of how far we’ve come. Equity is amazing, but I feel like including it in the total might give me a false sense of security. I don’t want to let off of the gas!

We purchased our home in August 2017 for $255,000. At the time it appraised for $268,000. Also, since then we added an additional 400 square feet of living space to our home by finishing the garage.

Watching this percentage move in our favor is very slow going, but it is also encouraging and rewarding. By the grace of God we paid off the first 16 years of our mortgage schedule in 16 months. The reason we are doing this is freedom! We don’t want to worry about money. (Within reason. A budget is always important!) We want to be a blessing to others, too.

Sick and Tired of Being Sick and Tired – Part 2

Let’s start where we left off in Part 1 of our story. In 2013, our home went under contract quickly, and we were left scrambling for a new home. Where we ended up wasn’t my ideal choice at the time, though my husband loved it. It was an older farmhouse which doubled our living space, and it sat on 12 acres. What we didn’t realize was the huge increase in heating costs it would bring. Our summer electric and gas bill amounted to $800 per month!

We did not have the extra funds to sink into new windows and new heat pumps, amongst other things. Yet we did purchase a new travel trailer and owned fairly new vehicles. We went to Disney World every other year. Priorities, right? We were perfectly normal, and I didn’t believe we could do anything differently.

Near the end of 2016 I came across a mention of Dave Ramsey in a totally unrelated YouTube video, and I decided to purchase The Total Money Makeover. The rest is history. My husband had suggested we learn from his teachings a long time ago, but I told him there was nothing we could do differently so it wasn’t worth our time. How foolish!

After reading The Total Money Makeover, we cash flowed a new heat pump in two months time. I was astonished. How did we do that? We then started knocking out the rest of our van debt, our travel trailer debt, a small credit card, and a personal loan. At that point my husband found a new job five hours away which would really help our cause.

Given our large family and menagerie of animals, we purchased a new home in South Carolina and moved before we put our home in Georgia on the market. Totally not Dave approved, but we didn’t want to separate our family for a time and renting wasn’t a good option for us. Once our home in Georgia sold, we made a profit of around $70,000 after fees. We used $30,000 to pay off the remainder of my student loans, and put $40,000 on the principal of our new home. We purchased it for $255,000 in late 2017. At the time of this writing, we owe $141,397.

Our home is about the same size as the one I purchased in 2004. We did cash flow a garage conversion in 2018 to give us a bit of extra space. It sits on six acres of land. One downfall is it’s distance from my husband’s workplace. Nearly 60 miles! But we’ve made this sacrifice for now as we continue to work on our finances. Frugality has become a way of life for us until we dig ourselves farther out of the hole we are in. We would love to be mortgage free!

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$1500 Sent to Our Mortgage Principal

On paydays, I usually slip out of bed super early to pay bills. Strange, I know. But it is so satisfying to see our mortgage balance drop! This week I finally read “The Simple Path to Wealth” by JL Collins. It sure is motivating! It was a very easy investment read and with the exception of some language, I totally recommend it!

I’ve gotten into the habit of budgeting bi-weekly instead of monthly. It just makes sense to us, and I tend to save more money when I break our expenses into smaller chunks.

This week was wonderful since the only needs coming out of my husband’s check was violin lessons, gas, and a few extras. At the moment, I’m covering our food costs with funds from my Etsy shop.

Much more will be taken from the next paycheck, like our utility bills. We are currently using our Health Savings Account to pay for orthodontist payments. I don’t consider these payments as debt, instead I see them as paying for a service as we go.

$141,397 left on our mortgage. I am ready for those $130s!

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