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  • FIRST POST
    • LeighofMar
    • By LeighofMar 17th Jan 19, 4:38 PM
    • 202Posts
    • 489Thanks
    LeighofMar
    Cottage Countdown
    • #1
    • 17th Jan 19, 4:38 PM
    Cottage Countdown 17th Jan 19 at 4:38 PM
    I stumbled upon this forum a while back and was so excited to read about other people's mortgage-free journeys. Strangely enough, I haven't been able to find a similar forum based in the US no matter how much I've searched. I'm not sure if that's a sad commentary on the state of affairs of my fellow Americans, but I digress. So, I am a 41-year-old American. It's just me and my OH, my best half, living in the Southeast United States in a very low cost of living area. We bought our last house three years ago and have decided since it was so cheap, to just knock it out so we can be mortgage free by the time I'm 45 and he's 60. We have no debt. Our only child moved out last year so we are also new to the whole empty nest thing and fixing up our adorable little cottage/bungalow as we go along. It's the perfect size for us, 3 beds, 2 baths, but no garage which we may build something in the future to appease OH. Not too big, not too small. It's perfectly functional. Things that need taking care of are typical in a home built in 1945. Roof will need replacing soon. HVAC was just replaced. Carpets in the 3 bedrooms need taking up and just cosmetic paint. Kitchen could do with a redo of cabinets and countertops, but works for now. We bought it for 67K and received a mortgage of 64,655.00. I know we do things slightly differently here in the US. Our 30-year mortgage is fixed at 4.25% so with property taxes and insurance, the monthly payment comes in right under $500.00. That's absolutely crazy cheap for almost anywhere. We got really aggressive last year and paid $10,000 off principal and our balance now stands at $50,470.00. I hope to break into the 49K bracket by early February. I OP every single Thursday. I've taken inspiration from several diaries that have recommended paying to get the numbers to 0.00 so if I don't have a full P&I payment, I would make an OP of $70.00 and then my balance would be $50,400.00, etc. I really like doing it that way and marking my progress on my amortization schedule. Right now, we are 7.5 years ahead of where we're supposed to be on payment 127 out of 360 when we should be on payment 38. I'm very proud of our momentum and hope we can keep it up.
    So with that said, I made an overpayment today of $79.00. Looking forward to knocking out this mortgage in the next 4 to 5 years. Thanks for reading.
Page 7
    • savingholmes
    • By savingholmes 2nd Jan 20, 3:54 PM
    • 10,207 Posts
    • 21,288 Thanks
    savingholmes
    Glad your lanterns arrived - they sound lovely
    During 2020: Target 1) 25,121 to be repaid in 2020 (0%) Now down to 24,703 Target 2) repay 1450 off (OP 102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
    • LeighofMar
    • By LeighofMar 10th Jan 20, 3:27 PM
    • 202 Posts
    • 489 Thanks
    LeighofMar
    Today has been a good day for mini goals. Overpayment made today of $318.60. Balance is $41,581.40. Savings deposit of $100.00 today finally brings me back to my goal of $10K minimum in general savings. The house fund received $60.00 and the Efund $30.00. I paid off the line of credit that had my car repair on it and I paid off the rest of the fence work that was charged to my house credit card. Now I will need to budget to pay off the 6-month car insurance premium I just put on it $400.00 but I will make a goal to pay that in full before it gets to 30 days. Groceries budget of $200.00. I spent $154.00 for two weeks' shop and DH will spend another $10 to $25.00 for his lunch, fruit, and snacks that he likes to pick out. So I'm happy with being under budget and stocked up on all we need. Seriously, I have three frozen 1/2 gallon milks in the freezer. I thought there was only one in there so I bought another one.

    Unfortunately, the real estate investment is going slower than we'd like. It was going along fine until somebody dumped a massive amount of tires on the property and the city won't clean it up so we have to pay for that out of pocket. Plus the city dragged their feet on putting a water meter in, which we can't test the plumbing until that's there and then we can FINALLY get an inspection once the tires are gone and the water's tested. But of course the tire guy we found is dragging his feet to do it. And I completely messed up. I don't know if you have similar arrangements in the UK, but here in the US if you pay somebody as contract labor, you have forms filled out to show that you paid them and didn't take any taxes out, they'll pay their taxes, no big deal. Only problem was I submitted that information to my payroll company and completely forgot that I was supposed to submit it before Dec 30. So for them to process those forms will cost me $250.00 . So annoying but it's my fault for being so distracted that I didn't get to it. Oh well. I'm sure we will owe in excess of 3K for business taxes this year but since the real estate investment is going slow, who knows if it will sell by then and we recoup our investment in time. So we will probably have to pay that out of the dwindling business coffers . Worse comes to worse, I can pay in installments but I've always liked paying the government once and be done with it for the year.

    My car still needs tires. I will need new glasses. And DH's work van now is showing fuel pump problems which will be another $600.00 repair. And our client has been late with the past two checks, recently deposited our checks and then he shorted the last check by $550.00. What the heck? I usually don't vent since I'm a problem solver but it's gray and gloomy outside so I've decided to vent away I guess it's this way for a lot of people whether they're self-employed or not. Money just seems to be flying out the door around the beginning of each year both personally and professionally.

    I think I will exercise to try to relieve some tension and then get back to my budgets.
    • Moneyfordreams
    • By Moneyfordreams 10th Jan 20, 3:32 PM
    • 1,631 Posts
    • 7,553 Thanks
    Moneyfordreams
    Vent away ... hope its all resolved soon for you
    Mortgage restart June 2018 119950
    Re mortgage August 19 110470, HSBC 3000cc, Hfx 6500, NW 5150 M&S 1100,
    CC 16150 Mortgage 107900
    plus car 6000 , it's coming down
    • LeighofMar
    • By LeighofMar 10th Jan 20, 9:12 PM
    • 202 Posts
    • 489 Thanks
    LeighofMar
    Thanks, Moneyfordreams. I got back to my budgets and my spreadsheets and did what I do best. Dissect and project and figure it out. Now that I've exercised (and snuck one of my paleo fudgy peanut butter swirl brownies) I feel much better. It will be tight this month and I still have to deal with taxes but that's not until March so hopefully, I can get some reserves stored away by then. I'm about to finish work for the day and enjoy some Netflix and act like the next brownie I eat is the first one of the day

    Enjoy the weekend, all.
    • ktinbrum
    • By ktinbrum 12th Jan 20, 8:32 PM
    • 16 Posts
    • 13 Thanks
    ktinbrum
    Hi LeighofMar, hope things pick up with your real estate investment- how frustrating!

    I will be following along with your diary- really interesting to see the journey from an American point of view x
    • LeighofMar
    • By LeighofMar 12th Jan 20, 10:05 PM
    • 202 Posts
    • 489 Thanks
    LeighofMar
    Thanks Ktinbrum. We just had some severe thunderstorms sweep through last night and damage some electrical services so we will be busy over the next week and will put that money towards the project. Hopefully, that will help get this thing moving. Hope you enjoyed your weekend as well.
    • savingholmes
    • By savingholmes 15th Jan 20, 7:08 AM
    • 10,207 Posts
    • 21,288 Thanks
    savingholmes
    Good that business is picking back up. Frustrating over the fly tipping and the $250 charge. You will get there - you are still way ahead on the over-payments.
    During 2020: Target 1) 25,121 to be repaid in 2020 (0%) Now down to 24,703 Target 2) repay 1450 off (OP 102.51) mortgage now 144872 @1.7% Target 3) Set up SIPPs Target 4) Declutter 52 bags - now done 4/52
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