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:
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???
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.