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?
Mortgage Payoff Challenge - Part Deux
March 5th, 2014 at 01:08 am