September Mortgage Update: And what did we do with the leftover money?

Last month (August)
Balance:$7,481.78
Years left: 0.5833333333333333
P =$1,180.12, I =$34.29, Escrow =$812.79

This month (September)
Balance:$6,296.99
Years left: 0.5
P =$1,184.79, I =$29.62, Escrow =$812.79

Saved from prepayment ($0)

I have to admit, I was pretty tempted to pay off the mortgage this month just so I could put off some of the decision of what to do with our unspent leftover money from paradise.  That would only save $52.43 and only account for $6,296.99 and, to be honest, I’m not yet ready to give up this monthly post.  Plus I kind of like the idea of being done with the mortgage on my birthday.  Irrational!

Here’s what I did:

  1. I did have some pre-payment I could do, specifically to the US government.  I sent them the remainder of our estimated taxes plus some extra since I got some untaxed honoraria and writing fees.  $4,305.
  2. Hid traces of my stupidity from last summer when I scraped my car against the side of our garage TWICE right before leaving for paradise.  New bumper, front lamp, and fender:  $1,265.  (Surprisingly, this is still less than the car is worth!)
  3. Bought a second (custom-made Amish wood) filing cabinet:  $1,479.
  4. Tree removal and stump grinding (one of our remaining two ornamental pears fell over):  $563.
  5. Donors Choose.  I know I said I wasn’t going to do charity with this money, and I probably shouldn’t even count this since it’s only $200, but NPR had this story about a school in Louisiana losing its entire library and… (we also sent $100 to DH’s sister as a housewarming gift since they just bought, but I’m not counting that):  $200.
  6. Home laser removal thing:  $450
  7.  Vanguard Admiral Shares VTSAX:  Vanguard Total Stock Market Index Fund.  Because it has the lowest expense ratio and it seems pretty diversified and I have plenty enough bonds in our retirement accounts and emerging markets etc. are just so expensive.  Please don’t let Trump be elected president so I won’t regret not having put more money in international funds.  (Not that international funds will necessarily be doing well either!  Not even US Treasury bonds!):  $30K.

That leaves about 2K extra over and above what I want as an emergency fund, but I’m not getting paid for another month, and the stock market could be in freefall, and etc., so I think I’ll be happy to have the emergency fund stay a little extra padded this month.  I think what I will want to do is wait until we get 10K extra in savings and then put money into more admiral funds.  Maybe I’ll be more adventurous with diversification with additional 1oK lumps.

Fingers crossed, other than the cosmetic damage, my car seems to be in pretty good shape.  Hopefully I can put off car-buying for another few years.

If we didn’t have this extra cash, we definitely wouldn’t have spent more than a thousand dollars on cosmetic damage on my car, and instead of getting a second filing cabinet, we would have either culled, scanned, and shredded or we would have stuck some bankers boxes in the attic.  I feel a little bit guilty about the filing cabinet but it is so beautiful.  Oddly I didn’t feel guilty about the first cabinet or the similarly priced Amish recliner that I sat in while pregnant with DC1 and had to get, but maybe it’s because we had to save up several months and make sacrifices for both of those items.  In this case we already had the money.

We also started maxing out DH’s retirement, but it turned out we’d actually already been contributing more than I had thought, so that’s only 5K more over the course of the year.

We decided not to do a backdoor IRA because we’d like access to the money should we need it short-term without hassle.  (Also we want to avoid the hassle of putting it in there.)

We opted no on the kitchen renovation for now mainly because we just don’t have the time.  Partly because DH’s company only has enough money to get through February and cash in hand (or in the stock market) is better than a mostly done kitchen renovation that has gone over budget and taken all our time.  DH has gotten 3 head-hunter emails over the past month so it’s hopeful that he’d be able to find work should his current company go under, but we might not end up staying here and the market for houses in our neighborhood is so hot we could probably get away with not redoing the kitchen.

DH was pushing for cosmetic updates on the bathroom, but I wasn’t excited about them, so we decided not to do that.

DH went all over our neighborhood to see if anybody xeriscapes and only people with tiny lawns, big shady trees, and in hidden areas that aren’t immediately visible from the main roads seem to.  Plus we can’t think of anything that wouldn’t have to be sprayed to prevent bermuda grass (other than, of course, our thirsty St. Augustine).  So we’ve tabled that.

Not only do people not have solar panels in town, but the BBB has some really nasty reviews about the solar panel provider.  Plus our roof is neither new nor in need of immediate replacement, so…

And we’re not redoing the floors because we’re lazy.

So… yeah, laziness.  (I just spent 5 min trying to find our post where we talk about how being lazy can lead to saving money, but I gave up…)

10 Responses to “September Mortgage Update: And what did we do with the leftover money?”

  1. Solitary Diner Says:

    What an awesome problem to have! I just went online to set up tax payment installments and realized I barely have enough to pay them, so my reality is different from yours at the moment. (A cash flow problem rather than an actual money problem, but still frustrating.)

    Here’s hoping that I’m in the same position as you in a few more years.

  2. hollyatclubthrifty Says:

    I commend you for your patience. I think I would HAVE to pay off my mortgage once it got to 7K. What an exciting day that will be. Actually, the decision is going to be made for you in just a few months!

    • nicoleandmaggie Says:

      If I keep frittering money away on things like fancy filing cabinets, it would probably would make more sense to just pay the mortgage. *sigh*

      DH’s car just got rear-ended and even though he wasn’t at fault he might have to pay the $1K deductible (or they might declare the car totaled, and the bluebook value isn’t very high)… we’re not sure yet.

    • nicoleandmaggie Says:

      The annoying thing is that even with the $1214.40 regular payment gone, there’s still the $812.79 that we have to save up each month to do our own escrow.

      I think we’re supposed to pay our property taxes in two lumps and can either do the home owners insurance in one lump or monthly. So it’s like one monthly bill goes away and gets replaced by two really large irregular bills.

      If our property taxes were lower, this would be a lot more exciting. I mean, cash-flowing $14,572/year more is nothing to sneeze at, but we’re still paying $9753/year (projected to go up another 10% next year) minimum for the pleasure of owning our home.


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