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Mortgage Plans and Thoughts

January 31st, 2014 at 01:24 am

Our regular mortgage payment is $1,311.28. This includes property taxes and homeowner's insurance. Because our housing allowance increased by $102 per month this year, I am adding it to our regular monthly payment to be pulled automatically each month. That makes the payment $1,413.28. But wouldn't it be more fun to round that payment up to $1,415? Yes, it would!

I canceled our original payment on Wells Fargo today. I have to wait until tomorrow to set up a new automatic payment. Their rule. While I was on the site, I went ahead and made a one time payment for tomorrow. It was for $1,418, which is our regular payment for February, with the additional principal and a $3 Pinecone survey payment.

Tomorrow I will get the new payment set up to start on March 1. If I can I will make another automatic payment for mid month for an additional $275. Yep, we really are planning to send in more each month towards principal. I'm not very confident that I can do the second automatic payment. If I can't I will simply set the payment up manually each month. I have a plan to get that mortgage principal paid down!!

Are you paying extra principal on your mortgage this year? Do you have a plan to make it happen?

Posted in Debt | 6 Comments »

6 Responses to “Mortgage Plans and Thoughts”

  1. Petunia 100 Says:
    January 31st, 2014 at 01:30 am 1391131814
    1391131814

    I like your plan. Smile

  2. Another Reader Says:
    January 31st, 2014 at 02:23 am 1391135033
    1391135033

    My mortgage is for 30 years at 3.125 percent. It was last refinanced in December, 2012. I have NO plan to pay it off early. In fact, I took more money out in the previous refinance to buy rental properties when prices dipped to their lows in 2009-2010. I'm very happy I did that, as the properties I purchased then have almost doubled in value.

    My plan is to take every available cent (beyond a solid cash cushion) and invest it in something that pays far more than 3.125 percent over the long term. I am thrilled to make the mortgage payment every month, knowing the rate is one of the lowest in history. And I still get to write most of the interest off on my taxes every year.

    Many people here view debt as risk. For some people, paying off the house is important because they feel the need to eliminate the risk. In my experience, leverage can be a very useful tool, when used properly. It's all about understanding and managing risk.

  3. creditcardfree Says:
    January 31st, 2014 at 02:40 am 1391136034
    1391136034

    I like your plan Another Reader. We don't have any interest in being landlords or hiring property managers, but we do invest.

  4. Petunia 100 Says:
    January 31st, 2014 at 03:40 am 1391139627
    1391139627

    What a great mortgage rate, Another Reader.

    I think when it comes to personal finance, the best thing to do depends on where you are in your life, and what you most want to accomplish.

  5. My English Castle Says:
    January 31st, 2014 at 11:52 am 1391169145
    1391169145

    Good job, CCF. Isn't it fun to see the balance drop?

  6. beawealthywarrior Says:
    January 31st, 2014 at 12:55 pm 1391172927
    1391172927

    You already know my answer and I hope to have it paid off by July 4 2015!!!

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