Pay off mortgage and start having fun!

newgirly

As It was mortgage payment date yesterday I decided to play around with the figures, I wanted to see what it would take to pay off the mortgage in 6 years, so :

Starting balance: £158,055.28

We are on a two year fix until May 2012, 3.43% (20% OP PM allowed)


Balance as at May 2012 : 130,450.92

After this I am assuming a re-mortgage rate of 4.5% ( I realise that is probably far too low, but the idea of this is to encourage myself!)


Re-mortgage of £130,450 for 6 years, monthly payment £2070


Balance as at May 2013 : £ 110,947
May 2014 : £ 91,099
May 2015 : £ 69,358
May 2016 : £ 47,639
May 2017 : £ 24,942
May 2018 : £ 1,224
June 2018: £ 0


So the mortgage would take 8 years to pay off which is my MFW target date.
However I really wanted to shorten that even further. DH gets share dividends from work every year, he has just taken over the company, so will be getting more money as of next year ( all going well) the minimum he will get would be £7000, possibly could be as much as double that. Most likely it will be around £11 or 12 K


So I wasted yet more time seeing the difference the extra money would make and if it could get us close to a 6 year total MF date.



Starting balance : £133,008


Pay an extra £0 Time saved 0
£3000 10months
£5000 1 yr 1 month
£6000 1yr 3 months
£7000 1yr 5 months
£8000 1yr 7 months
£9000 1yr 9 months
£10000 1yr 10 months
£11000 1yr 11 months
£12000 2 years

So it would cost an extra £1000 per month to knock off 2 years, and around £415 per month to knock 1 year off.

I don't think we have any chance of having that much money coming in, but to be honest even if we did I don't think I would want to push it that far, mine and OH budget for the month including food is around £500. I think for the sake of having a mortgage for an extra year I would rather have a bit more money for the next 7 years, as it would mean no holidays/school trips etc. So I think we will continue on the MF journey, but not get disheartened by not being able to pay it off as quick as I want!

I think 7 or 8 years will be a good achievement if we can do it, a couple of months ago our mortgage was nearly 30 years.

Sorry if I have bored anyone with this, I just wanted to put it in my diary so I can check back in the future and see how close I was to the estimates (or not as the case may be).

Would any of you MFW's put all non essential spending money into the mortgage for the next 7 years to save 1 year, just wondered what everyone else would do?
Anyway, have a great day.

Baby_steps_2

Wow you are doing so well :j:j Those figures look amazing, I totally agree with you that its better to have a life during the journey than cut the extra year off you mortgage. We only get to live once so getting the balance right is important, especially with kids involved.

If it makes you feel any better we have 33 years left on our mortgage:eek::eek: Admittedly this will be drastically reduced when we re-mortgage later this year and have cleared the debts, but still hope it makes you feel more positive about your situation.:D

Good luck with everything, I'm really enjoying reading your diary.

newgirly

I agree babysteps, I think I would rather not go too OTT with the OP'S, and enjoy life on the journey.
We have just re-mortgaged cutting down the term from 29 ish years to twelve, and I know its silly but I felt really excited as we had shortened the term, even though it was just on paper, its not like we had shortened it by paying off a lump sum!

newgirly

Just tried to make this months OP but the bank had just shut, so will do it in the morning. I have just worked out the new balance after the OP:

Mortgage : £159,038.14
0%cc : £9706.15



£168,744.29 total.


Interest per day is now £14.94


I am a bit sad and have worked out how much we have paid off since re-mortgaging (far too much time on my hands I know!)

Start bal mortgage 17th may 2010 £160,936.11
Same for CC £9903.11

Total: £170,839.33


Which means we have paid off £2095.04 in 46 days,


That works out to £45.54 off the balance per day.

I am really pleased but, do seem to be spending an awful lot of time working out figures and reading op's posts on here, am I the only one ?! I think I may have to join the flyladies soon as my house is getting somewhat grubby, due to said lack of time because of
MSE

newgirly

Hooray ! just paid July's OP,:j

[Deleted User]

newgirly
no you are not the only one spending lots of time on here and playing around with figures!!

we have similar size mortgages so its useful to see what you are doing- your goal of over 2K a month OPs is very impressive!! wish I could get somewhere near that!! but every little helps ...so I keep reminding myself

I agree with what others have said, you have to have a life whilst doing this, and for the sake of a year Id say it doesnt really matter all that much, too much going without Im sure breeds resentment and the temptation to just give it all up (Im comparing it to me and diets! ;o)

I am chomping at the bit to get going with the OPs and have already OPd about 10K since taking the mortgage out just over 3 years ago...but with job and health uncertainties looming and very little in the way of savings, I am concentrating the rest of this yr on that , before starting with the regular OPs in 2011, so I will be reading diaries with interest to get some tips!

tyo

newgirly

Thanks Deleted_User, 10k OP's in 3 years is fantastic, well done. In the last 3 years we have probably added £25k to our mortgage to consolidate debts. Never again though.
By the way, the money we have paid off the balance since May includes our normal monthly payment as well (and cc payment), I wish it really was 2k pm in OP's, we'd be mortgage free in no time!

Good luck with starting your morgage free journey, the are so many tips on her, I find surveys are good if you are sitting in the evening watching tv, it does'nt feel too time consuming then.
I may also look into matched betting soon, although I don't think I have ever put a bet on in my life, so will need to do quite a bit of research first.

Sunnyday

Wow :beer:

well done newgirly you are doing really well, its so good to see how the figures are coming down

SD

pavlovs_dog

newgirly you are not the only one who likes to play about with figures. we have just applied for ou first ever mortgage and already i am looking to see when we can start overpaying and by how much.

i think you do need to have a balance though between OPing and life. It's when you don't have a good balance that the 'oh sod it!' moments creep in and before you know it you've racked up a load of CC debt.

newgirly

I have just made an overpayment on the credit card of £706.15, so the balance on the new 0% CC is £9000.
Minimum monthly payments are £202.50, but I'm hoping to pay off more than that if possible once the maximum OP's (20%) of the mortgage have been paid.
The CC has 12 months interest free with no transfer fee, so I am quite pleased with the deal.

New figures : £9000 cc
mortgage : £159038.14


Total: £168,038.14

Interest per day: £14.94