My Mortgage

2010/01/22:

Here’s what I’ve done today:

  1. Transferred $211 from my account to my long-term savings account.
  2. Sent an extra full payment to my mortgage company.

AS OF TODAY, MY NEXT MORTGAGE PAYMENT IS DUE ON MARCH OF 2011.

Making some payments ahead of schedule (my goal is two years) is part of my long-term emergency plan.   Only paying down the principal on your house can be dangerous if you lose your job.

2010/02/19

Current mortgage balance = $154,776.44.

First baby step for today:  More than double the principal on my mortgage

Double the principal:  It’s February, month 2.  I followed my plan and sent a single mortgage payment to my mortgage company but with double the principal.   It will work out to be a little more than double:

  • Payment due date:  03/01/2011   (I am building a large buffer for protection.)
  • Regular payment:  $1,640.64  (that’s principal, interest and escrow).
  • Extra amount towards principal: $940.00.  The principal is about $815, but I will know the exact amount applied to principal when the transaction is complete.
  • Breakdown:  Principal = $814.12.  Interest = $644.90.  Escrow = $181.62.  Extra towards the principal = $940.00.
  • Total payment today: $2,580.64

Next mortgage payment due date is in 13 months on April 20001.  As I read bad financial news today, I realize that paying my mortgage way ahead of schedule is a huge peace of mind.

Another baby step for today:  Long-term emergency

I made a deposit of $192.50 (50% of my wife’s paycheck) into our long-term emergency (trading) account today.  I’m investing it in oil this time.

I have almost $10,000 of my long-term emergency fund in CDs because I want the liquidity benefit.  The rest will be invested in commodities because I can afford the volatility in the commodity market with that money.  I am not planning on investing in company stocks with my long-term emergency fund.  Commodities is as far I am willing to go risk wise with that money.

2010/03/05

Current mortgage balance = $153,022.32.

Step for today:  Sent my mortgage payment which is due next year on 2011/04/01. That is how I am building a big buffer to protect me in case of a job loss.

Next step:  In two weeks, I will be sending the next payment which will be due on 2011/05/01.

Thought:  I am staying on track by not spending, not eating out and no car payment.

2010/03/19

Current mortgage balance = $152,200.89

Step for today:  Sent my mortgage payment which is due next year on 2011/05/01. That is how I am building a big buffer to ensure that my mortgage is covered if I experience a loss of income for any reason.

Next step:  From now on, I will be sending a single payment per month but  include two principal payments.

Continued Mission:  I am staying on track by not over spending, not eating out and no car payment.


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One Response to “My Mortgage”

  1. Phil Says:

    Tough question. Sorry I have no idea either.

    Phil.

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