I am terrible at setting goals. I also don’t really share numbers here. At least not in any streamlined way. If you read my posts about unexpected expenses and the $24k in debt we killed last year, you’ll get a fairly decent picture of my income and my spending. But let’s leave a little mystery to life, shall we?
The one thing that I do consistently well, though, is to track my mortgage in an attempt to slash away at it. The goal is to have it paid off before my 40th birthday. Ten years seems reasonable. Rather than continuing to talk vaguely about it, I thought I’d share quarterly updates here.
When we bought our house, our mortgage was for $214,000. We put down just over 20%; in doing so, we dodged PMI. I’m not even sure I knew how PMI really worked back then. All I knew is that I didn’t want to give the bank any extra money on top of the gobs of money I was already going to be giving them in interest over the next thirty years. While I know some of you gasped at the thought of a 30-year loan, I made sure that we could pay it off early without any issue. See? Little Penny did have her act together a wee bit.
Earlier this year, we started to get aggressive with our mortgage paydown. In our typical budget, we plan for a double payment. Then, I toss my extra side hustle money for the previous month at the mortgage. That means that at the start of the fourth quarter of 2016, we still owe $180,815.12. Be still my heart.
As if that number isn’t panic-inducing enough, I should also point out that last year, I paid $7,076.95 in interest. Before you tell me that I can write this off on my taxes, let me remind you that I know. I did, and I’ll do it again next year. Now, let’s consider the fact that one of my friends rents a two bedroom, two bathroom apartment* with access to two pools and a pond for less than what we paid in interest. It goes both ways. You like your mortgage? Fine. Don’t let me stand in your way. But I’m getting rid of mine.
*There are also dogs. And faint odors. And neighbors very close by. Sometimes, I really do like my mortgage.
In short, the plan is to stay the course. There will be months when we pay 3.5 times our required payment. I’ll continue to celebrate obnoxiously on Twitter. There will also be months where we only pay double or slightly more than that. While I hope it never happens, there may even come a time when we only pay the regular payment. Maybe there will be some unexpected expense. Or maybe I’ll get my investing prowess so on point that I put all of my extra income there instead. I’m hoping that quarterly updates will be enough motivation to keep us pushing forward aggressively. Let’s get this done by 40, shall we?
So Tell Me…Should I share more numbers? Do you have a mortgage? What’s your debt-slashing plan?