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|
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|
|Item||Amount Saved Yearly|
|Yearly Tax Return||$2,000|
|Making Bi Weekly Mortgage Payments||$1404|
|Only Going To Dinner Once a Month||$600|
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.