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Debt Paid:YTD

March 15th, 2014 at 09:12 am

It is a little odd that I don't think of our mortgage as debt in the same way I do our credit cards, or loans when we had those. I definitely don't like having a mortgage or paying interest on it, but I do just accept it as a fact of life in some regards.

As you know, we are paying extra on our mortgage debt this year. It feels good, even though I know we will not pay it off before we move. I think of the principal payments as savings in a way. Theoretically, we will get that cash back when we move and sell the house. Of course, if use a realtor, they will get a cut. And if the house were to decline in value, that would cut into that profit as well. This time around the housing market seems to be going in our favor. We likely will make a little money when we sell. Smile

So we have made progress on the mortgage this year. We have $3,758.59 less mortgage debt than we did at the beginning of the year. We are ahead of our goal by over $260! We are definitely on track to pay off over $14K this year.

It is so fun to see the progress and actually see the steps I planned work to make the goal come to reality. It's not so hard when you have a plan!

Have you made any new goals for your money this year? How are the ones you made coming along? Are you behind, ahead or right on track?

I had to edit this post as I realized I missed our January regular principal payment of over $400 in my year to date total. Instead of being slightly behind we are ahead. Glad I caught the error. I feel even better about where we are!

6 Responses to “Debt Paid:YTD”

  1. scfr Says:

    Great progress! I think most of us who are home owners think about mortgages as a fact of life. There are very few who can buy a first home with cash. I love being mortgage-free now, but if I had waited to buy my first home until I could pay cash I may still be renting.

    And the realtor will make the same commission whether you own your home outright or have a mortgage. Is yours a state where you have to pay sales tax when you sell a home?

  2. creditcardfree Says:

    Yes, I do know the realtor gets the same commission either way. We do not pay sales tax on a home sale here. Glad for that!

  3. snafu Says:

    Wow! paying down the principal on your mortgage by $ 3,758. from January to mid March is phenomenal. I hope you're giving yourself a significant reward. What you are doing will significantly affect the sum you receive in the future when you sell. If you see the possibility of a move to another location, it's easy to watch quarterly Zwillow valuations in your area. It's not 100% accurate but close enough to be realistic.

    Most people make their regular monthly 'mortgage' payment blissfully unaware that most of the sum paid is parcelled out to interest, property tax and PMI if applicable with only a couple of bucks actually applied to the principal, the sum initially borrowed. While interest rates are lower, I recall reading most mortgages cost three times the sum borrowed. A $ 3000. K mortgage costs $ 9000. K if it were to be paid out over 30 years.

  4. bluesfemme Says:

    Whenever i feel bad that more of my pay doesn't go to savings, i do feel better reminding myself i now pay 2 1/2 times my required mortgage payment each fortnight. I do see it as savings too :-)

    Until i started reading these blogs i was cruising along paying the minimum and never feeling i had spare money to throw at it. Now it gets paid first and we live (well) on the leftovers. 4585 to principle so far this year (offset helps with this too).

  5. Bluebird Says:

    Wonderful job on the mortgage pay down! That's how we paid off our mortgage, small and large amounts.

  6. bluesfemme Says:

    And in case that's not clear, thank you for being part of the motivational force!

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