Paying off the Mortgage – Year 1

Today is the one year anniversary of my closing. Overall the year has been good, but once again I must admit that I would rather live in a condo or an apartment. Let’s get to the numbers:

  • House Cost: $164,900
  • Mortgage Amount: $122,290
  • Principal Paid: $12,265
  • Interest Paid: $5,714.36
  • Remaining Balance: $110,025

Oh my, look at how much is being allocated to interest! I am nowhere near as aggressive about paying the house off as I was with paying credit cards, the car loan and student loan. It has been a bit of a struggle/balancing act to determine how much should go towards to the house and how much should go to living life.  Getting a roommate has relieved some of the pressure, because I can put the rent towards the mortgage instead of beating myself up each payday that I don’t make an extra payment.

In 1 year, I have only paid an extra $5,222.66 toward the mortgage and will finish in just over 14 years. I really, really want to do it in under 10. Below is the summary for where I starter and where I am.

Summary Initial Current Comments
Years Until Paid Off 15 14.23
Number of Payments 390 370 20 Payments Less
Last Payment Date 6/23/2031 9/16/2030 9 Months Early
Total Payments  151,910.43  149,164.17
Total Interest  29,620.43  26,874.17 Save $2746.26 in interest

In the graph you will see that the need has moved just a tiny little bit and for this I am grateful.Mortgage Graph - 110K

The journey to payoff a mortgage is anything but short and sometimes it seems impossible. I remembered when I was in Baby Step #2 I created debt thermometer that I colored in every time I paid off $1,000 to help keep me focused on the end goal. Generally speaking I LOVE progress trackers, so it only makes sense to create one for my house where I can color in the squares as I go. It’s pretty basic, but gets the job done.

Mortgage Thermometer - 110K

What do you do to stay motivated? Do you have recommendations on how I can pay down the mortgage faster?

 

 

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