The Mortgage is 40% Paid Off

Exciting news to report!  This August, we finally reached the 40% mark for paying off our home loan.  We have been consistently sacrificing in order to put as much money as possible toward this debt.  It’s a big one, and we’re really excited to be making progress toward our goal.

We bought our home in May 2013, so it’s been a little over a year as I write this.  I still remember sitting there with my wife at the closing table, with our realtor and the mortgage lender there across from us.  A million and one forms were signed, and we knew exactly what we were getting into.  Even though we were diving into debt, we knew it was very conservative compared to our incomes, so we knew we could comfortably pay the regular payment even if things got tight and one of us lost our jobs, or some other catastrophe.

But enough reminiscing.  Here’s the progress we’ve made so far.  I’ve also included the percentage of our take home pay that we’ve been putting forth to pay this thing off.



As you can see, the mortgage balance is declining slowly but steadily.  There were no big windfalls.  No lottery winnings.  No calls from the NBA telling me I’ve been drafted.  Just regular, boring, extra payments each month.  It doesn’t seem like much as we make the payments, but over time we can really start to see the progress.

In the second chart, you can see how volatile the extra payments have been.  There are some months where we can really devote a lot of extra income to the mortgage, and sometimes we can’t.  Other times, the payments we make at the end of the month just aren’t reflected in the numbers because our lender hasn’t processed the payment yet (this is why August’s numbers look a little low compared to the last few months).

The amount we put down to eliminate principal, as a percentage of take-home pay, is trending toward the 40% mark, which is pretty exciting for us.  In a year’s time, we should be close to having the mortgage paid for.  That’s certainly a day I look forward too – a step closer to financial independence.

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