Things are ticking along with the mortgage payoff. We’ve continued with a small overpayment every month and dh is talking about putting his next potential {small} pay rise towards increasing the overpayment.
The figures as they stand today are:
- Mortgage Balance: £117,799
- House Value £180,000 {approx}
- Monthly Payment £542.34
- Monthly Overpayment £57.66
- Payments left 240 {20 years}
The interest rate for the time being continues to be low {0.99%} although I’m not so sure how long it will stay like that; also for now the mortgage payment is on par, if not a little cheaper, than any house we could rent for a family of four in our area.
There are now only two years until we move abroad and it’s impossible to plan what will happen at that time, so for now I’m just looking at the mortgage as debt, debt that I want gone; making small overpayments makes it feel like we’re making progress.
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{photo credit: therichbrooks}
{ 9 comments… read them below or add one }
You are making good progress. I like the fact that DH is going to use his pay rise to make overpayments. Back in the bad old days when I got a (big) pay rise I went straight out and bought a much bigger house, with a much bigger mortgage. I honestly didn’t know what a mortgage overpayment was back then – didn’t know they even existed! Luckily this time around things are very different, with me having paid off a 23 year mortgage in 8 years, and I have a much smaller and more manageable house too.
Tony recently posted..TGIF
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ah, we are coasting along on the extremely low interest rates at the moment too. Although overpayment is just not really happening. WE have a mortage of £210,000 (down from £214500) so moving in the right direction. But we are paying interest only at £267 pcm. I was paying £500 a month into it but that wouldn’t even pay it off in the 17 years left on the term. Not sure what we are planning to do really, all i know right now is that rent for what we are living in stands at about £1500 pcm so really we ought to be paying that…. however with the interest on the mortgage at .49% we really would be better off paying it into a savings account and getting 3% on it….. gosh I really must address this and earn some more money…. we bought our house in 2007. Hence the massive mortgage. but also hence the really good rate….
Mo recently posted..Obama gets it
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Keep up the good work! You will NEVER be sorry!!! I am a single working woman who bought a house February 2007 and moved in March 2007. I am agressively working to pay down my mortgage also. I don’t know the conversion of your funds vs USA funds, but the balance on my 2nd home loand is $5000 and I hope to have it paid for by the end of 2010. This will leave me with approximately $55,000 or so on the 1st home loan. My house is 1262sq ft, 3bdrm, 2bath &2car garage. Though it is more than I need for myself, it provides me to entertain and house guests – which I love! Keep up the GAZELLE intensity (quote/concept from Dave Ramsey; http://www.daveramsey.com)!!! It is inspiring to hear of others who want their debt GONE.
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Hooray! So what if your mortgage overpayments are baby steps – because they are definitely headed in the right direction!
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We are making mortgage overpayments too with the goal of paying it off early. It will be an awesome feeling.
This is my first time to your site. I’m going to subscribe so I can follow along on your journey to portugal and financial independence.
Kristia@FamilyBalanceSheet recently posted..Grilled Peaches with Homemade Whipped Cream
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Hi Kristia thanks for subscribing! I’m like you, can’t wait to be mortgage free
Thanks Miss Thrifty!
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HI Misty and thanks for dropping by; good luck with getting that mortgage gone!
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Me too Tony re the buying a bigger house! We live and learn don’t we? You’ve done so well to turn your finances around. Inspiring
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Awesome! Thanks for posting numbers. I’ve been paying a little bit more each month and it hasn’t been feeling like I’m making headway. But when I look at your numbers and read the comments I feel better!
Jaime @ Eventual Millionaire recently posted..Important Bond Decisions for Start-up Entrepreneurs
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