Our mortgage debt, because that’s how I think of it, as debt, plays on my mind. To me owing over six figures to a bank just doesn’t feel right. I know that you have to live somewhere, and at the time we bought our house it was just right for us, not too big, not too small, about the right size. We didn’t over extend on the mortgage either…..I think we borrowed 65% of what the bank would allow us, and yet we still owe £112k (at June 2011). Eek!
So what do we do?
Going all out on our mortgage payoff will definitely curtail our plans to move to Portugal next year…although that might be changed anyway…..but at the moment all we can think of is getting rid of that debt.
So the tentative plan for now:
Over pay by £657.66 a month and make annual lump sum payments of £3,600…moving our mortgage end date to December 2017 with a stretch goal of being mortgage neutral (mortgage – savings) by December 2015…..just over four years from now and fifteen years earlier than the original term.
I often think about how indecisive I must seem on this blog (in most areas of my life I’m not indecisive at all), but moving abroad and changing your whole life is a big thing [to me], it’s totally out of my comfort zone and is proving to be a decision roller coaster!
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{ 9 comments… read them below or add one }
I thinks it’s a great idea to pay off your mortgage as early as possible!
Owing money to a bank can be a good thing if the money borrowed is used to create an income or in your case to buy yourself an asset – your house.
Once you’ve paid off the debt to the bank and your house is an asset and not a liability, you could then borrow against this asset in the future to create further income!
And yes of course moving abroad and changing your life is a BIG thing, infact it’s a MAHOOSIVE thing!
A lot of people don’t even think about it because they’re scared of change, they don’t want to leave their comfort zone – and yet here you are doing exactly the opposite of what most people don’t even attempt – so YES it’s a big deal!!
And it’s always good to change your plans as it keeps things fresh – but remember that it’s only good if those plans still keep you moving forward!
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laura Reply:
June 24th, 2011 at 7:06 pm
@WeeMike LOl, It is a MaHoOSIVE decision, which I forget sometimes
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I don’t think you’re indecisive, but smart for reworking your goals when needed & figuring out what’s going to work best for reaching your goals!!!
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laura Reply:
June 24th, 2011 at 7:02 pm
Thank you Carla!
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It is definitely a good idea to rework goals. What has worked in the past won’t necessarily work now. This is exciting news, it really isn’t that far away.
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laura Reply:
June 24th, 2011 at 7:03 pm
@Niki when I stop focusing on the nitty gritty of it all, it is very exciting
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Whenever you finally pay off the mortgage debt, you’ll be glad you did. Good luck meeting the updated goal.
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laura Reply:
June 24th, 2011 at 7:04 pm
Thanks Exe, your progress has been totally inspiring!
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I completely understand how you feel. The thought of our mortgage and my goals makes me crazy…and thinking about selling and moving into something smaller. We owe quite a bit more on our mortgage, but we are on track to have it paid off in about 14 years. I think we may be able to shave 4 years off if I go back to work full time, but that won’t be until the kids are in college.
Steady plodding is all I can do right now, because it’s really important to live for today too. It sounds like you are thinking this out carefully. It’s a HUGE move, and you’ll know when it’s the right time to do it!
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Laura Reply:
June 24th, 2011 at 7:49 pm
@Sharon Being mortgage free in 10 years would be awesome! Do yuo think that you will go back to work full time?
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Great job! You’ll be under 6-figures in no time!
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Laura Reply:
June 24th, 2011 at 7:47 pm
Thanks Michael, lets hope so!
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The mortgage payoff is the easy part. It’s a very tangible goal that you can see progress on every month. I wish non debt goals were so black and white, so I understand your concern over a nebulous move date.
As your balance goes down, it really starts to go a lot quicker. You’ll get there before you know it.
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laURA Reply:
June 24th, 2011 at 7:00 pm
Thank you Sandy…it seems such a huge mountain at the moment, but at least we know what we’re up against
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Wow Laura! Shaving 15 years off of your mortgage is an amazing accomplishment. And yes, things can and probably will change from now until your new targeted payoff date.
Who knows — maybe you’ll have it paid off even sooner!
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Such an inspiring Blog! So excited to keep following your progress! You are doing great!!!
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