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Mortgage Payoff Challenge - Part Deux

March 5th, 2014 at 01:08 am

Sooooo....in line with my new life, I have a new mortgage. On June 1, 2012, I was blessed with a 30 year mortgage for $108,000.00. As of March 1, 2014, my principal balance is $104,820.00. Now one would ask...."blessed with a 30 year mortgage". Well, when you face the many changes both personally, professionally and financially that I faced in 2010, obtaining this mortgage (with a 4.2% interest rate I might add) was not only a fiscal blessing, but a huge step in gaining identity. For me, it meant I had taken one of those baby steps toward recovery. Now please, don't get me wrong. My new norm was facilited by my divorce. The divorce was, shall I say, relatively calm, amicable and not based on abuse, addiction, or any other type of controllable hurdle. We just grew apart and felt we would do better as parental partners versus husband and wife. Nonetheless, to ensure she and my children have everything they need and within the parameters of the legal system, I had to make many, many changes. I have not yet made one single additional payment toward the principal, which anyone who knows me would say....."how is that possible". But as the smoke in my life continues to clear and the many blessings I have and continue to receive, I am starting to consider throwing a few extra dollars against it each month. As you know, every penny counts toward reducing that principal balance and thus, the interest you ultimately pay. As I began my 52 Week Savings Challenge this week, I thought it would be a good idea to earmark it for Christmas. Now as I continue to ponder, maybe a second 52 Week Challenge would be best served as an annual principal dump toward the old mortgage. What say you? Christmas fund and principal dump or one or the other? If one or the other, which one?

4 Responses to “Mortgage Payoff Challenge - Part Deux”

  1. NJDebbie Says:

    Welcome!!!! I'm going to say put it towards the principal of the house, but I'm kind of bias on this. Last April, we paid off our $243,500 mortgage in three years. We were blessed with a great income back then and put every extra cent we had, part of our savings and the sale of our rental home and paid off the mortgage. And guess what happened a month after we paid the house off? My husband lost his job of sixteen years. He is still unemployed, but the bills are paid because we do not have a mortgage. Good luck and I look forward to reading your blog.

  2. beawealthywarrior Says:

    I'm using $750 of my 52 Week challenge for Christmas and will throw the rest at the mortgage.

  3. Mooshocker Says:

    NJ Debbie...WOW....I am so happy for you! Someday I will be able to say that....beawealthywarrior....great idea. So simple and yet I never thought of splitting it. Thanks!

  4. creditcardfree Says:

    I was going to say do both, especially if you don't need the full challenge money for Christmas.

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