3 Years in and I’ve Already Saved Time and Money off My Mortgage

The Purchase

I was incredibly lucky in the purchase of my home. There was no negotiation like you see on House Hunters. You had to come in with your best offer, which included YOU paying all closing costs and often offering far more than the asking price.

3 Year Mortgage Update Saving Time and Money Off My Mortgage

Ahead of Schedule:  It’s now been 3 years since I purchased my home and began making payments. When you calculate the payoff schedule for my mortgage parameters with an amortization schedule calculator , at 36 months in the balance should be roughly $211,677. My 36 month balance is actually at $206,328.04.

Interest

Going back to the amortization schedule, if I had been paying my mortgage according to schedule (without extra payments), I would have paid roughly $26,175 in interest. What I’ve actually paid is $25,282.72 in interest. I’ve saved $893 in interest so far.

Early Payoff

It’s difficult to calculate the exact time I’ve saved without getting a payoff schedule from my lender, but according to Sebastian’s calculations I’ve already cut roughly 6 months off the mortgage. The extra payments add up to roughly five monthly payments, but the interest savings are equivalent to almost one payment within the first 36 months at no cost to me.

How Did I Do It?

Luckily, my method for making extra payments does not require me to take anything away from my monthly budget. In fact, I haven’t had to cut anything in my lifestyle to afford these extra payments. I simply avoid lifestyle upgrades when I have extra money.

What Does the Future Hold?

My plan is to continue to put at least $200 extra toward the principal every month. I’m still making payments on my truck and investing in several accounts along with making these extra principal payments. I don’t want to go all in for one or the other (investing or paying off debt), but rather like to work on both at the same time.

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