Balance Start (October): $169,254.89
Years left: 17.0833333
Interest rate: 4.75%
Hm… I don’t know what else is interesting here.
Monthly payment: $1,806.35
That’s P = 544.44, I = 669.97, Escrow =591.95
It’s kind of depressing how interest is the biggest and principal is the smallest. Taxes and insurance round these parts are expensive.
This month I consolidated some low interest savings accounts and released the extra cash that had been sitting in there to avoid fees. DH also got some consulting money this month (the project was finished months ago, but there was an accounting hold-up), some of that will go into savings and some has gone here. Most months I won’t have 18K extra just sitting around. I’m a little concerned if we have a big emergency that I won’t have as many places to draw money from, but we do have one and a half month’s expenses in savings, so hopefully it will be ok. We also have some taxable stocks that could be sold in a true emergency.
So, according to my handy GRS amortization spreadsheet, this month the updated numbers will be:
Years left: 14.42
P = 618.61, I = 595.80, Escrow = 591.95
One month savings (difference between predicted interest for next month vs. actual interest): $72.01 ( which is a lot more than the $8 it would have made in savings this month).
So paying a big chunk up front fairly early into the mortgage can make a huge difference. This is pretty exciting! All of a sudden our remaining mortgage debt is less than the amount of a house I’d be willing to live in locally. If only I had an extra 18K each month, I’d knock this mortgage out of the ballpark. Sadly 18K is quite a bit more than our take-home pay each month. I am looking forward to funneling quarterly dividends (from my remaining single stock holding) and daycare savings account reimbursements into here in the future.
Let’s see, I already talked about how much I like the no-fee refinance from Wells Fargo. Another thing I like about Wells Fargo is that they make it very easy for you to direct your money into different bins… on the monthly bill they send you there’s a spot for directing your extra payment into escrow, principal, late fees, or just future payments. I’ve read that some mortgage companies make it very difficult and automatically put extra money towards future payments. Some places recommend sending additional payments certified, but we definitely do not have to do that. WF may not be my favorite place to bank, but we have been very happy with the mortgage service.
We did get a notice that our mortgage has been sold to Freddie Mac, though Wells Fargo is still servicing, so I don’t know if we’ll still have the no-fee refinance option in the future. Hopefully if we’re good it won’t matter!
How are your savings/repayment goals going?