Progress to Early Retirement: 45%
Progress to Financial Independence: 90%
Progress to Great Start: 100% {Feb 2015}
Percent Home Ownership: 40.5% (home value dropped noticeably)
August 2018 – ER:44% FI 89% HO:41.9%
The big news this month is that my home value dropped about $24,000. This is the vagaries of the market and living in a state that has difficulties budgeting. Rather sad and funny that. That technically dropped our home ownership. We are putting about $125 each month to the principle. That will shave about 2 years off the loan as I recall. I don’t have my numbers. We previously put about 4 months mortgage payments to the principle which took another year or two off the loan.
Otherwise, this was a fine month for us I guess. I have not measured month to month; taking the idea of set it and forget it in terms of dollars, but reviewing the balance of our investments a few times a year. I should add that my numbers are from 10 days ago for August, so it’s not a real number, but I want to start doing this on the first of the month, not the 21st! Just like the weekly spending, this is interesting to me. That week will start on Mondays.
I am curious what other folks think about paying down the mortgage soon. My rate is just below the average inflation rate of the US since 1920. This site has the average number, but my other link there has the raw data. The second link is right, but don’t take my word for it. The number is 3.29%, and we are below 3%. That is hard to beat, even today. Like, I said, though, I am curious what other folks think. Obviously, leaving this dumb state would be a good idea regarding home values, but that is another story. It is also something we are considering for various reasons. For now, though, family keeps us here.
There is a lot to be said for paying off the mortgage early. It’s a real psychological boost – and that in itself is of great value. Taking advantage of low interest rates to pay it down is a good option.
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I am comfortable living with the debt. But your point is quite valid it gives you a lot more flexibility. I think if I lived in a market where I thought they home value was going up that might mean something, but the county we are in is not doing so good even though we are within commuting range of New York City. Of course if interest rates start going up and up that might change things as well. Otherwise I’ve heard talk from two of the Fed members I guess they call them that said they want to keep rates more advantageous to consumers then to producers so that could change things.
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We aren’t paying our mortgage off early, but even so, it will be paid off by the time we’re 54. If we decide at some point that we want to be 100% retired from work, we may change that plan, but that’s not the goal for now.
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