Paying Off the Mortgage Update: June 2014

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Ever since I bought my house back in August, 2011, I have had the intention to pay it off early. Well, then life happened… (we’ll leave it at that). But, as of January, 2014, I have refocused my energies toward this house pay-off! In the beginning of January, I owed about $54,500 on my 3 bedroom, 1.5 bath home, and I planned to pay off the total amount by the end of December, 2014 (yes, this year!). Here is how the payoffs have gone thus far:

  • January – $54,217
  • February – $53,871
  • March – $43,524
  • April – $39,999
  • May – $34,120

The balance has definitely been coming down! In five short months, I have paid off over $20,000 worth of debt. Hopefully I can keep this train rolling!

The Mortgage Payment in June

In my last post, I did not expect to pay all that much to my mortgage debt because I thought property taxes were on the way, which would have been an $1,800 bill or so. Thankfully, those taxes did not yet come so I did not need to take that hit in the month of June (but I’m sure I’ll see them this month so I won’t get too excited just yet). However, I did have to pay my quarterly business tax of $850, so that did hurt a little.

The budgeting in June (as you can see in my previous post) was amazing. I did not need to fuel my car at all (thanks to my bicycle) and my utilities bills are finally low again. Outside of my business tax, I spent less than $1,000 in the month. That’s pretty incredible! Think of how cheaply I could live if I didn’t have a mortgage!

I kept my expenses low in June, but I also worked my butt off to earn a decent side income. One of the major ways I planned to increase my income in the month of June was to write articles, and boy did I! In just that single month, I wrote 64 additional articles (on top of the articles that I write for this site). In total, I think I wrote about 75 articles, which probably equates to about 45,000 words typed in one month. Phwew!

My loan balance at the end of May was $34,120. With my minimal spending and my extra efforts writing, I was able to put another $2,868 toward the mortgage and bring the balance down to $31,252.

mortgage payoff June 2014

That Dreaded Orange Line

At this moment, I am still technically below the orange line, which is the payoff pace I need in order to achieve my house payoff by the end of December. With my property taxes still on the way, I am not feeling all that great about this position on the chart. In order to stay below the orange line in July, I need to pay my mortgage down to $26,936, which means I need to come up with $4,317…Yikes….

So if you factor in those $1,800 property taxes, I need to find $6,117 of additional money. I’m all about optimism, but this simply is not going to happen. I need to start calculating what is necessary for the long term to figure out if I’ll have enough to make the payoff by December.

Month-to-Month Projections

By keeping my expenses low and by continuing to write articles (by the way, if you need more articles written, let me know!), here is what I can expect to accomplish in the upcoming months.

  • July – $30,000
  • August – $27,500
  • September – $26,000
  • October – $22,000
  • November – $19,500
  • December – $17,000

Based on my projections (by continuing to do what I’m doing), I can realistically pay my mortgage down to $17,000 by the end of December. If you recall, I do have a $15,000 cushion in my savings account that I could use toward the payoff, but I certainly don’t want to use it all since this is technically my emergency fund. At most, I would feel comfortable putting $10,000 toward my mortgage, which would put my mortgage number at $7,000. It’s respectable, but it does not allow me to hit my goal. I need to figure something else out.

Can you think of ways that I could increase my earnings each month? Any advice is welcomed!

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