Happy Cinco de Mayo!
Yes, I’m a guilty American that uses this holiday as an excuse to drink tequila and eat Mexican food. LOL! Perhaps not this year… but next year, bring on the Margaritas and nachos! LOL.
I apologize for the extended absence. Little man is keeping me busy… good thing he’s a cutie. 😉
I hope everyone had a wonderful April, full of financial progress!
Looking Back at April
As of April, our mortgage principal was $6,577.18! One of our 2016 Financial Goals is to PAY OFF THE MORTGAGE!!! I’m keeping my fingers crossed that we can pay it off before we leave England.
May’s Journey to Mortgage Freedom Payment
Normal Payment: $620.81
Road Tax: $213.36
Extra from Budget: $1088.13
Total Principal Payment: $1948.04!!!
Just shy of $2000 paid on our mortgage this month all while saving $1500 for our upcoming PCS (military move). Definitely something to celebrate!!! We paid about $300 more this month than we did last month.
–Interest ($2.04): This was the monthly interest that accrued on our savings accounts (mostly from our emergency fund). Nothing to brag about, but every dollar counts!
-Road Tax ($213.36): We budgeted to pay 6 months of the British Road Tax. However, when we received the bill we realized it didn’t save us much to pay 6 months vs. a monthly (~$38/month). Plus this way we will not have to wait for a reimbursement when we sell our vehicle in the next month or two.
-Gasoline ($23.70): We budget $200/month for gasoline expenses. Last month we had a little extra left over and so we applied it to the mortgage!
–Extra from Budget ($1088.13): We had a few less expenses last month and so this is a couple hundred dollars more than the previous month! Here is to hoping we can have a couple more similar payments in the upcoming months!
New Mortgage Principal… $4,629.14!!!
WOW!!! We have a mortgage less than $5000!!! In all honesty it is so difficult to wrap my brain around how little amount of debt we have left. For so many years we had HUGE numbers staring back at us.
We could easily use some savings to pay it off. However, we are saving for our move. I can’t believe how close we are to DEBT FREEDOM!!! Two to four months remaining… CAN’T WAIT!!!
New Mortgage Statistics
Daily Interest: $0.60 ($0.26/day reduction!)
Our monthly interest is now $18! LESS THAN twenty dollars a MONTH! When we started paying off our debt, just over 4 years ago. We were paying $24 EVERY. DAY. in interest! Incredible!
Number of Years Extra Payments have Knocked Off Mortgage: 24.5 Years!!!
Minimum Payment Amortization: January 2017! 8 months left… even if for some reason we need to go back to paying minimum payments.
Our Journey to Mortgage Freedom Visual
Here is a breakdown of our Month by Month Progress
Looking Forward to June Mortgage Payment
- Saving for PCS – We are saving $1500/month until ~July to pay for PCS (military move) expenses. This takes up a large portion of our “extra” income that has been previously applied to our mortgage payment.
- No Major Expenses as far as we can predict there shouldn’t be any BIG extra expenses this month.
- Blog Income – I should have a small amount of blog income this month to apply to our mortgage in June. Every little bit helps! Thank you for your continued support!
Will We be Mortgage Free before Leaving England?
We will be moving from England to Hawaii this summer. We should have two more mortgage payments before moving. This means we would need to average a $2314/month principal payment on our mortgage. This would be $300+ more than May’s mortgage payment.
Considering these numbers, it will be EXTREMELY difficult to pay off our mortgage before leaving England. It appears we will be $700-$1000 short from paying off the mortgage. Considering these numbers, you better believe we will be scraping up any extra change and trying to trim down our PCS budget to find some “extra” money to PAY THE MORTGAGE OFF!!!
What do You Think?
Do you plan to pay off your mortgage early?
If you were in our shoes… would you pay the mortgage off now or wait to make sure you have plenty to cover our PCS move and have plenty in the event of an emergency.