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Paying Off The Mortgage Update: March 2014


I have vowed to pay off my mortgage by the end of this year, 2014. At the end of February, I still owed $53,800 to the bank, which is a huge amount (to pay off in a year anyway), but I still think it’s possible.

Paying Off The Mortgage: Money Windfall in March

I expected March to be good to me, but notΒ this good. If you remember my post, “Paying Down the Mortgage: My Successes and Failures,” you probably recall that I expected to receive about $3,000 back in taxes, get about $3,000 in insurance money, and I expected to sell my Malibu that I was flipping for $6,500.

Well, I got a little soft-hearted and sold the Malibu for only $6,000 (but still made a $650 profit), and my insurance check was as expected for approximately $2,850, but the tax return left me a little speechless. In fact, it was actually a little embarrassing.

I had a fantastic year of blogging income in 2012, which left me paying in a ton of taxes (like, over $4,000), so I definitely didn’t want this to happen again. In 2013, my income slowed down a bit, but I kept paying in the normal tax amount for fear of underpaying. Well, I definitely did not underpay this time. Instead of owing money at the end of the year, my accountant informed me that I was going to get $4,700 back from the government due to my tax over-payment. Yikes! It’s great to receive the inflow of money, but I really wish I didn’t allow the government to use my hard-earned money for free all year. I probably could have handled it much better myself. πŸ˜‰

So, with the $4,700 tax return, $2,850 from the insurance company, and $6,000 from the car flip, I ended the month with quite a beefy bank account. Because of this, I decided to put $10,000 extra toward my mortgage, which leaves me owing $43,500 to the bank yet.

paying off the mortgage
So far I have overachieved on the mortgage payoff! I hope I can keep this up!

The Outlook for the Future

Next month will be a normal one with no large inflows of money expected. However, I have been earning quite a lot with my website lately, so as long as I keep my personal expenses down and continue to earn my normal income from my full-time job, I hope to make another sizable payment, which might just bring my mortgage below $40,000. That would simply be fantastic!

I have another opportunity to make a large payment in May. Since I get paid bi-weekly, there are two months out of the year where I actually get paid three times (instead of the normal two). My first triple payment month happens to be in May this year. On top of this, I will also be receiving a reimbursement for my college tuition from my company. With this fortunate month of May, I hope to drop my overall house payment below $30,000. From there, it may be a struggle to keep up with that orange line, but I am going to give it my best! I want nothing more than to get rid of this debt and to show all of you that it is possible!

Are you cheering me on as I pay off my mortgage?! Comments and personal emails are welcomed! πŸ™‚

Get Out of Debt Money Mortgage Payoff


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.


  1. You can do it. Wow that’s a drastic drop at the graph there. Good luck to you and will keep on cheering you on! Your way of thinking is excellent because most people will put off the mortgage payment and instead buy more stuff, like a new phone or a new tablet. Then after you pay off your mortgage what next? are you gonna write about retirement options? cant wait. Cheers

    • Yeah, this month was awesome. They definitely won’t all be like this, but I do like the head start on my goal. After the mortgage is paid off, the next step will be passive income – most likely in real estate. I can’t wait either! πŸ™‚

  2. That is very exciting news. That would be a real motivator to get the balance down to $30K. Living in a paid for house would be a really great way to make sure you hit all your other savings goals.

    • It sure would be exciting to get that mortgage below $30k! If I can get that accomplished by the end of May, that would be amazing. Stay tuned! πŸ™‚

  3. You’re doing a great job! It’s nice to make large payments every so often and see the balance drop like that. That is definitely motivation right there!

    • Thanks Jon! It was definitely a fun payment to make. I can’t wait to see the mortgage down below $40k! It should happen soon!

  4. Wow! I’d love to take a $10K bite out of my mortgage, that is amazing. Keep up the good work and you will achieve your goals. I look forward to reading each new article you put out.

    • Thanks CDG! I love the encouragement that I’ve been receiving from my readers. It really helps to keep chipping away at this massive goal!

  5. That’s totally awesome dude, 1/5 of the way there already! πŸ™‚

    Only $4,777/month on average to finish out the year … ouch, that hurts to even see it written down. πŸ™

    • Haha. Yeah, that wasn’t really motivational Chris! πŸ˜‰ I do have some reserve cash that I can throw at the mortgage if it gets close at the end. So, if I can get the mortgage down to $10k by December, consider this goal achieved. πŸ™‚ Stay tuned!

  6. Great job Derek! We paid our mortgage off in February and the feeling is tremendous. Our budget has so much freedom in it now we don’t know what to do with ourselves. Keep plugging away…the end is near.

    • Congrats to you! Based on your photo, you are still a pretty young guy too, so that’s awesome! I hope to join you in the “mortgage free club” soon.:)

  7. Wow, nice job! Great idea to use your third “extra” paycheck during the triple payment months to help with the paydown.

    • Right! Those months are certainly nice because I won’t really miss that third paycheck at all. It’s basically like bonus money. Luckily, I have another one of these months in October as well (and I think I’m going to need it to actually come close to this December payoff)! Thanks for the comment Quinn.

  8. Congrats on the huge payment! I’m rooting for the 2014 payoff for you!

    I’m hoping we get a few thousand back from taxes (we’ll know this Sunday). I’d be putting it towards our Roth IRA’s. Our rental home is paid off, but paying off our current mortgage has taken a back seat to cash padding for the next year…

    • Do you plan to keep working until you’re 59.5? I am always a little shy about putting money into my Roth because I would rather invest in rental properties that allow me a cash flow today as well as flexibility. Based on my current Roth contributions today, I should have well over $1 million before I turn 65. This will basically be bonus money once I get there.

  9. Congratulations! You will be under 40K in no time!
    When I was paying off my mortgage, I also used those 3-paycheck months to my advantage.
    Have you decided how you will celebrate? I went to Aruba!

    • Thanks Mike! I have not decided on what I would do to celebrate. I was just thinking about a barbecue with some close friends and family, but maybe I’m thinking too small!

  10. A bbq with some friends/family when you get that mortgage paid off? Oh HELL NO! You get yourself to dreaming and find an exotic place to go for at least a week or two. Altho we’re a solid year behind you, we’re already planning that trip to the Caribbean. And we’re going first class all the way. You have to reward yourself for such an awesome accomplishment. So go plan that trip and plan on blogging pics of your celebration trip! Best of luck.

    • Lol. You’re probably right Jim. I haven’t taken a lavish vacation in so long, it’s probably about time that I reward myself huh? The Caribbean does sound pretty nice….;)

  11. You’re a good example to many people showing the importance of paying that mortgage off and that you don’t have to wait the length of term to do it. In a Dave Ramsey book he says you should avoid at all costs a 30 year mortgage and always do a 15 year one.

    • That’s true Chad. I would definitely encourage everyone to get a 15 year mortgage instead of a 30 year note. In fact, if you can do 10 years, do 10. If you can pay off a home easily in 3 years, then do that.

  12. Derek,
    I’m just telling you (from years of living frugally) – there’s a danger that can (and did – at least for us) occur. We got so damn frugal minded that it didn’t even occur to us to really celebrate our accomplishments. Huge goals were achieved and we just pushed on to the next one. Not anymore. When we reach our next big goal (no mortgage) we really are going to celebrate it – rather extravagantly ’cause I’m afraid if we don’t learn how to do that, we’re never going to really appreciate all we’ve done. And I don’t really want to die rich, but experience poor.

    • I really do appreciate this comment Jim, because I am the same way. I don’t need to set up constant rewards for myself to stay motivated. I just keep driving toward the goal anyway. But, this probably isn’t very healthy because I will die rich but experience poor. I was going to buy myself a tablet when I got my mortgage below $40k, but was going to deny myself this (because it’s taking me away from my overall goal), but now I think you may have changed my mind. πŸ™‚ Thanks Jim!

  13. Good for you, Derek – do it.

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