Wednesday, October 28, 2015

Update - November, 2015 - Keep on truckin!

Another few months have passed and I thought I'd update the few of you out there that may still be following my Rental mortgage payoff journey.  I am now nine months shy of the goal date which also means I'm 33 months into this marathon.  I now have far more mortgage payoff miles in my rearview mirror than I have left to go.  Time is doing what time does best...keeps moving relentlessly forward and stands still for no one.  It's both a friend and an enemy.  A friend to those with a plan and the determination to stick to it, but the enemy of those who just live from one day to the next, never planning beyond tomorrow.  Okay, okay enough waxing philosophical!

I can't tell you how often I thought the whole debt payoff process through from several different angles and entertained different ideas on how to accomplish it over the past several years.  I've gone back and forth on saving and paying in lump sums to sending every spare cent in the minute it cleared my bank account.  At times, I've decided to invest, only to end up selling the investments and sending those monies to pay down the mortgage.  I keep coming back to the simple realization that I've never wanted anything so badly as I want to see this goal through to its completion.  Having said that, I've just sent another $8,900.00 in addition to November's regular payment to the bank and taken a chunk out of this last mortgage.  As of November 1st., the balances look like this:

November Payoff Stats:
Jan 1, 2013 (Beginning Bal).                                                        November 1st, 2015                                Amount Paid Off
==========================================================================
House #1 - $70,908                                         House #1 - $29,639                      $41,269
House #2 - $57,619                                         House #2 - $ 0                              $57,619
House #3 - $49,123                                         House #3 - $ 0                              $49,123
-----------------------------                                    -----------------------------               -----------------------------
Total:       $177,650                                                          $29,639                     $148,011 (-83.31%)

My last update was in August and the balance was $39,824.  It felt good to be under $40k but it feels even better here in November to be under $30k!!!  We just keep on truckin' and it just feels right. 

It's always super cool to see what the accelerated payoff plan does to the Principal/Interest ratio.  Just a few months ago back in January when the balance on House #3 was $63,163, the Principal/Interest ratio was $335.60 Principal / $218.28 Interest.  Now, having paid the balance down to $29,639 the ratio stands at $450.45 Principal / 103.43 Interest.  That's an additional $114.85 applied toward principal every month.  $114.85 each month  ($1,378.20 yearly) more money going (or "staying" if you prefer) in my pocket instead of going into the bank's coffers.

The reward is just around the corner and the payoff will have been well worth the sacrifices.  I'm on track and dare I say, may even be able to meet my mortgage payoff goal sooner than next July.  $177,650 paid off in forty-two months equates to an average of $4,229.76 per month applied toward the payoff.  Of course it hasn't been quite that linear, but it still amounts to a great deal of money applied month after month after month.  A short sighted person only looks at how they could spend an extra $4,200 and all the nice things that would buy.  A far-sighted, big picture kinda guy sees getting out of debt and converting that into a nice income as the reward in itself. 

I obviously haven't been posting every month.  I'll post every few months when it seems worthwhile to update everyone.  No money being made or sought on this blog.  It serves the purpose stated at the top of the page and hopefully encouraged a few who are travelling the same path toward FI and debt-free living.  To all of you I can only say, "Keep on truckin!"