Paying Off The Mortgage: Failure or Success in October?

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Unfortunately, another month has ended, which means that I have less than 60 days to pay off my home mortgage! AHHHHH! I don’t feel quite ready for this yet, but as we always do, let’s review how much I paid off in October and make a plan for a full payoff by the end of this 2014 year.

Paying Off The Mortgage: The Journey Thus Far

I made the audacious goal back in December 2013 that I was going to pay off my $54,500 mortgage in one single year. In the beginning I was fortunate enough to get a huge tax refund as well a few tuition reimbursements from my company. All was going swimmingly until May – this is when Google decided that I needed to be penalized and my monthly web earnings dropped by about 80%. This did not fair well for my mortgage payoff plans.

If you know me at all though, you know that I don’t give up very easily. So, instead of sulking at my misfortune I decided to write a crap ton of articles for other sites to make up the income difference. By writing often, I was still able to earn about a thousand extra bucks a month during that four month stretch of penalization. Things are now back to normal, but there is still quite a large pay off to be had! Here is a quick summary of my progress by the month:

  • January – $54,217
  • February – $53,871
  • March – $43,524
  • April – $39,999
  • May – $34,120
  • June – $31,252
  • July – $27,934
  • August – $26,656 (small payoff because of property taxes)
  • September – $26,656 (I bought a truck to flip, so the money went toward the purchase instead of the mortgage)

Not too shabby huh? Well, this is all distant history. Let’s dig into how well I did this past month!

The Story in October

Before I decided to buy that truck to flip (which I still own by the way), I planned on paying the mortgage down by these amounts each month:

  • September – $2,800
  • October – $4,000 (I was getting paid 3 times in this month)
  • November – $2,800
  • December – $2,800

Instead of putting $2,800 toward my mortgage in September, I bought a truck for $3,800, paid $200 in taxes, and put another $300 into fixing it up (that’s a total of $4,300). So, in October I expected to scrounge up only $2,500 ($4,000 minus the $1,500 additional dollars that went toward the truck in September). Thankfully though, the month was even better than that!

In October, I was able to put $3,322 toward the mortgage!

At this moment, I owe $23,334 to the bank before I can call my house 100% mine. Here is what my payoff has looked like so far (vs. the orange payment line I was hoping to hold myself to):

paying off the mortgage october

The Future Months

I obviously haven’t stuck to that orange line too well in the recent months, but I still feel pretty good about paying off the mortgage. I now own a truck that’s worth about $6,000 and I still have $15,000 in the bank (which is technically my emergency safety net, but I could use most of it for the payoff at the end of the year). If I can put $2,800 toward my mortgage in November and December and sell the truck without any further expense, I foresee the chart looking like this before the end of this year.

paying off the mortgage december

By selling the truck for $6,000 and by using a large portion of my savings, I could have my mortgage down to zero by the end of December! And, I would still have about $3,000 left in the bank. If all happens according to plan, then I am going to go on a wicked nice vacation (still undecided on where at this point – definitely some place tropical though)! After the vacation I will start to save up so I can invest in real estate (and then of course write all about it). It will definitely be an adventure!

Whew! I think I’m still on track to pay off this mortgage! What do you think?

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Mortgage Payoff

Derek

AUTHOR Derek

My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.

19 Comments

  1. Great job Derek! Keep up the good work and I know you will achieve your goals!

    • Thanks CDG! I sure hope so!

    • Yup, I definitely did get a little off track, but with this truck and my buffer cash I think I can still get there!

    • Thanks Dojo! Hopefully I’ll be writing about the full payoff in December! 🙂

  2. Derek,
    I don’t think you got off track AT ALL. I think life happens and you have stayed the course! GREAT FOR YOU!!!!!!!!!!!!!!!!!!!!

    • Thanks again for the comments Jim! Yeah, I couldn’t really help paying property tax, and buying that truck was a steal that will hopefully earn me more money for the payoff!

    • I really haven’t thought about it, but you’re right! This will make for an awesome Christmas present! Thanks for the comment Jason. Hopefully I don’t disappoint in these final months!

  3. I have an interest rate of 3.5% on my mortgage and with a rate that low, increasing my retirement contribution would be a much better use of my money. I don’t have to tell you Derek that things don’t always go according to our plans. Congrats on sticking with your goal Derek!
    Paul @ The Frugal Toad recently posted..The Great Thanksgiving Giveaway – Win $125

    • Mine is pretty low too Paul – something like 3.75%, but there is no guarantee that I will get that return from the stock market. Instead, I would rather have absolutely no debt and have the peace of mind that my house is actually mine, not the bank’s. Plus, when it’s paid off my cash flow will skyrocket, which will open up my life options severely! A house pay off is not for everyone, but it is definitely for me!

  4. Awesome stuff!! As much as getting penalized by the big G hurt, you adjusted and learned other ways to make some money and have consistently made strides paying off your mortgage.

    I know you’ll make come December 31st! Looking forward to seeing the vacation pics after you hit the goal and return from some fun in the sun!!
    Jon @ Money Smart Guides recently posted..How To Live On $1,000 A Month

    • That definitely did hurt, but I persevered and wrote a ton of articles for others to make up the difference (or most of it anyway). Buying and selling that truck helped a TON! I’m not sure I’d even have a chance without that. I’ll have a new update soon. Can’t wait to share!

  5. 30 days and counting… tic freaking toc. you ARE going to do this – yay! Can’t wait to see that blog!

    • 🙂 I’ll have an update up soon. I’m getting closer! 🙂

    • Next post comes out tomorrow! I’ll just tell you that it was a fun one to write. 🙂


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