3/06/2014

Mortgage Payments

It's so so sooo tempting to increase our mortgage payments - but with the loan sitting at 3.39% and our Escape at 6.90% - it's hard to justify that over the Escape.  But now that we've changed our payment scheduled to accelerated bi-weekly, I don't like seeing that the amortization has gone up.  Here's some scenarios for what we could do.

Our current payment is now $770.22/bi-weekly and we could increase it as high as $885.75.


We could drop from 24 years amortization to 15 years, 6 months....from being 53 to 44 years old w/out a mortgage.... wowza!

...but what would we have to sacrifice now in order to do that?..For each of these scenarios we would need to come up with $29.78, $54.78, $79.78, or $115.53 bi-weekly.

 Do you see where it could come from?  Here's a snapshot of our current monthly budget and our debts:

 

I should  mention...just in case there's anyone new reading along - that this monthly budget is based on Jordan's salary with no commission.  I can't budget fixed amounts for that - but it's how we intended on reach the rest of our planned saving/spending goals.  We also intended to continue to pay of the LOC, and Escape using commissions.

oh!

One last thing.. in case your interested....the interest rates.

  • Kia Rio - 0%
  • Mortgage - 3.39%
  • Line of Credit - 5.49% (unsecured, and tied to prime)
  • Escape - 6.90%
Reactions:

3 comments:

  1. I know it's tempting, but you would get most flexibility out of paying off the Escape or the LOC. I would pick one to focus on and git 'er done.

    ReplyDelete
  2. The Escape makes the most sense - higher interest rate and more immediate gratification. Get rid of all other debt before tackling the mortgage is my mindset.

    ReplyDelete
  3. I think you guys are right....watch for the next couple of posts...I think we just might have a plan.

    ReplyDelete

Hi! Thank you for stopping by and leaving a message.

Followers

Links ♥