This past week I made an over-payment of 0.51%. This is an increase from the usual 0.20% over-payment due to my getting a tax refund.
My goal for this year is a 3% over-payment. I have zero idea how I calculated that 3% and now am not sure if it was to be a "stretch" goal for myself. I calculated a specific dollar amount per month for over-payment including the month with a tax refund to get to paying off the mortgage by Dec 2025. That annual amount of over-payments, however, does not equal 3%.
Oh well. I put it out there so now I need to attempt to achieve it!
Also, my regular payment for the month is 0.26% marginally increased from 0.25% but definitely a good sign as the amount applied to principal increases while that applied to interest decreases :-)
Pru
How much do you pay as a base payment? Mine is about 1200 twice a month and I try to top that up when I have spare cash. My goal was a 15 year mortgage. My tax refund was about eight grand so that will help me get closer!
ReplyDeleteHi Anon. I only give my mortgage figures in percentages. Throwing your tax refund and spare cash at the mortgage will help you get a lot closer. I was super excited about doing that when I first took on the mortgage but I got a bit of burnout and then worried about having all my money tied up in my home. Investing more money than before makes me feel much better but I should be able to repay the mortgage within 13-15 years (aiming for 13 or less!).
DeleteThank you for commenting!
~ Pru
Great job, Pru!! An increase from last time is something to be celebrated! Must feel great to see good habits (and sometimes little windfalls like a tax refund!) convert into actual dollars that can go towards extra mortgage payments, investments, etc. It's inspiring. Thanks for sharing your journey!
ReplyDeleteThanks Frugal Desperado! It does feel great although I do *sometimes* want to spend the money, it is best for me to immediately send it back out the door. I try not to think too much about it and also try to lower my expectations and desires of which wants I end up purchasing. (Like it's okay to get a $200 bag but not a $2,000 bag even if the windfall of the moment would cover the larger expense.) Basically it's all a mental competition - sometimes Pru wins and sometimes Pru with a really expensive bag wins (although this is less and less often).
DeleteSide note: Just an example as I haven't bought a really expensive bag in years. While I appreciate the quality of some brands, high end *stuff* just doesn't fit in with my life goals...right now :-)