This month was a little sketchy for our mortgage pay off plans. I decided to use some of the funds to cover Christmas expenses so that we could still continue to build our emergency fund on schedule. I also was starting to feel on the fence about paying off the mortgage vs. investing. It’s a topic I struggle a lot with.
In October, we prepaid an additional $200 over November, but otherwise we stayed well on track considering November ended with a quick last minute $216 payment from my second job to make up for the $400 I put elsewhere earlier in the month.
November 2017 Mortgage Numbers
- Starting October: $212,976.32
- Prepaid October: $2,168.00
- Ending October: $210,223.80
Chart Long Term Changes
This is last month’s chart. I’ve updated our regular chart to include a prepayment of $200 a month for the life of the loan. That is why the ending date jumped from 2041 to 2037. Just paying that little extra each month, without anything else, will cut off 4-5 years on the mortgage. This is a more realistic version, as the $200 is just built into our regular payment.
I was hoping to get below $210,000 for the month of November, but that’ll happen on December 1st when our regular payment goes through.
Sitting on the Fence
I’m still on the fence between investing and paying it off, as sometimes I think what would happen if we got to the last $100,000 left and then had a HUGE financial emergency? It is an illiquid asset, but on the other hand it would be fabulous to cut off $12,000 or more in expenses per year and save hundreds of thousands in interest in the long term. That extra $12,000 would be nice to add to investing or to be used for travel!
It’s such a personal personal personal decision and I still think using our extra funds is a worthy goal while our main funds focus on building emergency funds and future investments.
What do you do? Do you pay it early? Pay partial? Or invest it all?
Other Future Plans?
And well, sometimes I think, what if we had another child. If we added to the family, should we instead save up assets in a more available form as in investments or otherwise instead of pumping it into a home? Though childcare would cost us a whopping $15,000 per year for a third (no lucky family members would be able to watch them). That $45,000 might be better used to get out of the mortgage or travel with our two kiddos and really see the world! I know, I know, a horrible way to think about family planning.
So many things to consider, but I think in the end we’ll stick with our wacky two and start to add travel back into our lives. It’s been 10 years since Chris and I took a true vacation…
One thing I am considering is changing our monthly payment to be a twice monthly or bi-weekly payment to add more funds to paying it off quicker. Though, we get paid on a twice per month schedule so it would be configuring it to fit in all of my software and budgeting setups. A thought for a future day.