Our (hopefully) final mortgage payment on this home posted yesterday. After almost three years, our interest was less than the principal portion of the payment! A low interest rate (2.75%) and making extra principal payments has helped get us there.
Specifically the interest portion was $485.96, but the principal portion was $487.70. A difference of just $1.74, but I'm celebrating this fun milestone regardless!
Do you have a mortgage where the interest portion of your payment is less than the principal portion?
The reason I mentioned this should be our last payment on the mortgage is that we are nearly 100% sure we are delayed on closing by a week. All due to the incompetence of the buyer's agent.
More Principal Than Interest
June 2nd, 2015 at 12:32 pm
June 2nd, 2015 at 12:46 pm 1433249202
Yay for you! Fun numbers.
We aren't near that yet on our mortgage, but we our equity in the house and what we owe are nearly 50%-50%. Value: $500K, owe $249.9K. And we could of course sell the rental property and mortgage free, but we're not there just yet.
June 2nd, 2015 at 03:42 pm 1433259776
I don't remember when we will get there with our mortgage, but not very long with low interest rates. We do pay more principal than interest anyway, with extra principal payments.
June 2nd, 2015 at 05:19 pm 1433265545
I've so wished mortgage grantors included an amotorization printout with their paperwork that showed the breakout of principal, interest and 'other' so that their client could easily track their balance owed.
June 3rd, 2015 at 12:18 pm 1433333899
June 3rd, 2015 at 01:14 pm 1433337245