I mentioned in my last post that we're paying ahead on our mortgage. Right now it's only a couple hundred dollars per month. We'll re-evaluate how much we pay ahead when we have our emergency fund in place.
I found this calculator at Mortgage-x.com. According to this calculator, we could save ourselves almost $56,000 in interest and pay off our mortgage almost seven years early if we kept paying only this couple hundred extra per month. Now that's some incentive!
If we doubled our extra payment to $500 a month we could save ourselves over $90,000 and over eleven years!
We'll definitely keep paying ahead and look for ways to increase that amount when we can.
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Over the first three years of my mortgage, I paid my Mum back what I owed her for the deposit. That was money I never had to pay interest on in the mortgage and helped me reduce what I owed very quickly.
Now I'm working on what I owe the bank. Currently I'm paying $900 in interest a month (down from $1200 in Dec) and I'm also paying over $1000 in principal every month (up from just $250 in Dec).
If I keep going, I'll be mortgage free in about 7 years, a total of 10 years after I bought the house :)
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