1. My plan to pay off the mortgage
I’ve looked into the different amounts needed in order to pay off my mortgage in 5, 7, 10, or 15 years. Below is a table showing the totals needed including interest for the different mortgage terms. I’ve also included a table that shows how much my monthly payments would be if I were to pay off my mortgage early.
| Mortgage Term | Mortgage Total (Including Interest) |
| 5 years- 60 months | $114,000 |
| 7 years- 84 months | $117,936 |
| 10 years- 120 months | $123,000 |
| 15 years- 180 months | $131,940 |
| Monthly Mortgage- 5 years | Monthly Mortgage- 7 years | Monthly Mortgage- 10 years | Monthly Mortgage- 15 years |
| $1900 | $1404 | $1025 | $733 |
After reviewing my total budget I’ve decided that I would like to cut my mortgage term in half and try to pay it off using a 7 year mortgage term. Under this term I would need to pay $1404 per month in order to reach my goal. Currently we pay $733 a month (minus taxes and insurance) for our mortgage. This means that I need to save an additional $671.00 per month in order to make the larger payments. Below is a table that shows where these savings will come from and details how we will come up with the larger payments.
| Amount Needed to Save |
| Monthly- $671.00 |
| Yearly $8052.00 |
| Item | Amount Saved Yearly |
| Yearly Tax Return | $2,000 |
| Making Bi Weekly Mortgage Payments | $1404 |
| Only Going To Dinner Once a Month | $600 |
| Discretionary Savings | $4048 |
Over the life of the loan these small changes in our yearly budget will result in a savings of $14,004 that would have been paid to the bank instead of going into our pockets.
