Will I Pay Off The Mortgage This Month?

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I have spent the last 11 months aggressively paying down my mortgage with the hopes of making the final payment here in December. So am I going to pay off the mortgage this month? It actually looks promising! Before I get too far ahead of myself, let me show you how I’ve gotten to this point.

From the Beginning: Pay Off The Mortgage in 2014

After paying my ex the $20,000 she demanded in 2013, I realized how quickly I could actually accumulate money! This got me thinking about the mortgage I hated, and I soon began to wonder if I could make it disappear inside of a single year! To do this I would have to come up with $54,500 in 12 short months – not an easy task, but I rolled my sleeves up and dove in.

From the very beginning I cut down on my bills, spent as little as I could, and worked incredibly hard to earn a large income. By focusing 100% of my efforts on paying off the mortgage, I was able to do the following through October:

  • 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)
  • October – $23,334

This wasn’t exactly the way I envisioned paying off the mortgage. Some months I barely paid off anything, and others I was able to take off $10,000! As I should have guessed, nothing happens perfectly or linearly, but in the end I hope to come out completely debt free!

What Happened in November?

November was a little crazy – in a good way. If you remember, I bought my truck back in September and finally received the title toward the end of October. Since I had already spiffed up the truck and had it ready to flip, when I got the title I put it up for sale immediately. In total I had about five calls on it, had one looker, and they ended up driving it home with them!

  • Total Cost of the Truck = $4,300
  • Truck Sale Price = $5,650
  • Profit = $1,350

While there was nothing standard about this buy and sell process, this truck is the most profitable flip I have had! And, the day after the truck sale I immediately put the $5,650 toward the mortgage, which brought it down to $17,700 or so.

After the truck sold I hopped back into my trusty gas sipping Honda and kept my expenses low the entire month. I also wrote a few extra articles during the month for some extra income, and my website earned a little more income than normal which was a nice treat! All in all, I was able to put another $2,900 or so toward the mortgage on top of what I had already paid off with the help of the truck sale.

At the end of November I was able to pay another $8,535 toward the mortgage! Here is a chart of my progress so far this year:

pay off the mortgage

I currently owe $14,799 on my mortgage loan. Not too shabby!!

Like I said before, the payoff isn’t necessarily that pretty, but I think it will still allow me to pay off the mortgage by the end of this year! I have 25 more days and I am going to fight to the finish!

My Hope For December

December is looking pretty good so far. My mortgage balance is $14,799 and I have $15,300 in the bank. I don’t have any known large expenses coming up and my website is earning some pretty good money already in December. And, I might even get a bonus from work which would add a couple hundred bucks to my bank account. All signs at this moment point toward paying off the mortgage by the end of this month.

The way things are rolling I expect to grow my bank account to $18,000 (at minimum) by the end of this month. If I used a chunk of this money to pay off the mortgage, I would have approximately $3,000 left and absolutely no debt. Do you think I should do it? Should I pay off the mortgage? My vote is absolutely yes. With zero debt, my living expenses will be about $500 a month, which means that my $3,000 “emergency fund” is actually 6 months’ worth of expenses. And, if all continues to go well I can bank $2,500 a month into my savings account and quickly ramp it back up over $10,000. So what do you think? Should I pay off this stinkin’ mortgage before the month is over???

 

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34 comments to Will I Pay Off The Mortgage This Month?

  • Yes, absolutely! That’s a great way to start next year and I hope you take a little money after the payoff to reward yourself with something you’ve been putting off. Congrats
    Kim@Eyesonthedollar recently posted..Did We Manage to Live On 50% Our Income This Year?

  • Tom

    Heck yeah, big guy! You kicked some serious butt! I think you deserve it. I’ll plan on a mortgage burning ceremony in mid-January!

  • Joseph Hogue

    Great job Derek, really working hard at it.

    I’m a little more relaxed on debt. Sure, taking on high-interest debt for conspicuous consumption is ridiculous but today’s rates make it a pretty hard sell paying off all debt at the expense of investing the money. If you’re credit is decent, why not just refinance into a 30-year loan and invest the proceeds? Even a passive index investment in the stock market should return well over what you’ll pay on the refi and a diversified portfolio in stocks, bonds, real estate and peer loans can yield 7% or better.
    Joseph Hogue recently posted..Best Personal Finance Blog Tips of the Week

    • Hi Joseph. Yes, there are many that wonder why I would even consider paying off my mortgage since the interest rate is a mere 3.75%. Sure, I might be able to earn more than this through my investments, but what if I didn’t? Investments do go down sometimes you know. Nothing is a guarantee (well, actually the mortgage payoff is a guaranteed earnings on the interest 😉 ). Also, if I didn’t have a goal to pay down the mortgage I would not have put anywhere close to that amount of money into my investments. Inevitably, much of the money would have gotten piddled away (as most would do). People just like to say that they are earning more in investments so that they can squander their money on random stuff throughout their lives. This isn’t you is it Joseph? 😉

  • Joshua

    Pay that baby off!! Good work Derek! I know you have been wanting to be debt free for a long time. Congrats!

  • Cheap Dutch Guy

    GO FOR IT!!! It’ll be another 14 years before I can pay my mortgage off, and that’s if everything goes to plan. I’ll be 50 by then, so that is my Target year for payoff. Maybe I should start a budget blog to keep track of my expenses and spendatures over the next 14 years, then again, maybe not.
    Keep up the great work!!!

    • Thanks for the vote CDG. Everyone’s life is different and allows for a different set of goals and timelines. Just stay the course and keeps what’s important in front of you!

  • linda

    I say pay it off and celebrate. You are so encouraging and you give hope to the rest of us by reading your progress!

  • James

    Derek:

    My wife and I paid ours off nearly two years ago and have not looked back. It feels so good to not have to send the megabank another payment. Now we can concentrate on our retirement accounts. Pay it off!

    • That’s awesome James! It’s great to hear from someone that has already paid off their mortgage as well. It sounds like it’s time for me to join the mortgage free club! 🙂

  • jim

    Derek,
    Congrats on the incredible progress you’ve made. Pay that baby off! And send us a picture of you holding the paper saying it’s paid in full! (the bank actually won’t throw a ticker tape parade for you, so plan your own special celebration for when you do)

    Way to go!!!!!!!!!!!!!!!!!!!

    • Hi Jim! I will have to send a photo of the upcoming celebration. Although, I should warn you that my Movember beard is still alive and well, and it isn’t necessarily pretty. 😉

  • bobbi

    heck yeah. pay it off. you have worked so hard to accomplish this, just do it! lol. Congrats!!!

  • James

    There are financial advisors that regularly tell people not to pay off their mortgage and to maintain as large a mortgage as they can afford so they can invest the difference. They forget, however, that people in general are emotion driven, especially when it comes to investing. Take, for example, the person that had a $300,00 home in Florida with a $275,000 mortgage. That person theoretically could have that $275,000 invested in the stock market. The problem is when one gets to years like 2008 and 2009. That $300,000 home dropped to $150,000 in value in Florida and the $275,000 investment was worth $137,500. One still owes $275,000 on a $150,000 house and only has $137,500 in the investment account. Too many people panic and get out of the market, thereby missing the recovery. Keep in mind your house, until you are ready to sell, is not a piggybank. It is where you live. Keep this in mind and you’ll sleep better at night.

    • Great comment James! There are many people that make the point that they would rather invest their extra money than put it toward the mortgage, but they never invest the money! So, while they think they sound intelligent, their actions prove their stupidity. They are not investing, they are buried in debt, and their cash flow is terrible. Sounds pretty stupid to me considering I am nearly mortgage free.

  • Joy

    I know you are excited, you should be! Good work! 🙂

  • You say “$14,799 and I have $15,300”, but what if you lost your job? What is your other expenses and how long could you last only on the blog income? I’d want at least a month of expenses before paying it off, but that is just me.
    Ginger recently posted..Financial Carnival for Young Adults December Edition

    • My monthly expense is about $700 without the mortgage payment. I figure I get paid on the 11th and will have about $17,000 in the bank. This will give me a $2,200 cushion which will last me over 3 months. If I lost my job, I’d probably be set for at least 6 months when considering the blog income. Do I have your approval on the 11th? 😉

  • Yes, you do! Though now I am jealous and feel the need to read more of your blog. 😀
    Ginger recently posted..Financial Carnival for Young Adults December Edition

  • In the words of Daniel Bryan (I’m a wrestling fan…) Yes! Yes! Yes!

    As you’ve said, your expenses will be much lower, so a smaller emergency fund will last you longer. Plus you will be able to quickly replenish it with the blog income and the money from not having a mortgage any longer.
    Jon @ Money Smart Guides recently posted..16 Habits of Wealthy People

  • Caleb

    It is amazing how in certain situations you find that you can do things financially you never though possible. I love the data you provide and hope that things continue to progress in the near future.

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