Archive | February, 2016

2015 Mortgage Prepayment Update

4 Feb

Forgive me for the recent decrease in posts, but we do have some fun news to share: we’re expecting the arrival of our first kiddo… literally any day now!

Baby Bump - Christmas Eve 2015

The bump on Christmas Eve

So while I regret not posting as much, let’s be honest – I’m not exactly expecting MORE time and mental energy in the foreseeable future either. 😉

I did want to take a moment to recap our mortgage prepayment progress in 2015. You might recall we set a goal to apply $10,000 in extra principal to the mortgage of our 2nd duplex.

Here’s how it actually broke out during the year:

  • January – $1,408
  • February – $1,755
  • March – $1,023
  • April – $1,135
  • May – $0
  • June – $0
  • July – $0
  • August – $263
  • September – $0
  • October – $0
  • November – $0
  • December – $0

The January – April payments are correlated to the previous month’s positive cash flow (after first setting some funds aside to increase our rental emergency fund). Around May we changed course and started savings money for a possible 4th rental property and then changed plans again in anticipation of larger-than-average make ready expenses last fall. What can I say – it was investment property priority ADD.

That brings our 2015 prepayment total to $5,584… and then I cheated a little and wrote a check on 1/18 for the remaining $4,416 to reach the full $10k goal.

Our 2015 (ish) contributions saved a total $16,616 in unpaid interest and trimmed 4+ years off the mortgage. The grand total for all mortgage #2 prepayments is now at $27,281 in interest savings and just over 6.5 years off the mortgage.Effects of Prepayments on Interest Paid - 2015Effects of Prepayments on Timeline - 2015It’s easy for these extra payments to feel like a drop in the bucket at the time, but after only a couple years of moderate effort I’m pleased with the progress and I imagine our enthusiasm will continue to increase as we get closer to the final payoff date.

For 2016 we’ll plan to apply another $10,000 to mortgage #2, which should save ~$12k in interest and trim roughly another 3 1/2 years off the mortgage.

Previous Mortgage Prepayment Updates:

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