Change In Plans
If we pay an additional $64.50ish a month between now and August 2012 we will pay off our mortgage right at the same time The Hubster is slated for retirement.
The figures below do not include today's payment that I just made of $419.00, which was actually a nice rounded up figure of $65.04 + 353.96 to come out an even 419.00.
Countrywide's little accelerating payments calculator came up with this future forecast:
Scheduled Monthly Payment: $353.96
Total Additional Payments: $4,264.02
Total Interest Payments Without Pre-Payment: $5,721.46
Total Interest Payments With Pre-Payment: $4,601.53
Interest Saved: $1,119.93
Total Reduction in Term: 1 Year(s) 9 Month(s)
I'll be charting an updated mortgage balance tomorrow when today's payment posts - I'm expecting it to be in the 22,798.00 range.
~~THE CHANGE IN PLANS~~
I have decided that we will pay the extra 65ish a month, but won't be paying any additional down on the mortgage, thus making a change in my $20 Challenge.
Our joint budget (house budget) will be making the additional payment 65ish (early payoff right at retirement) and I'll be taking my $20 Challenge money and putting it directly into my Roth IRA instead of on the mortgage.
Thanks to everyone here for finally convincing me that it is the better option for our financial bottom line.
This is a compromise of sorts, as we could just take the 65ish and put it into retirement as well, but gosheedagnabit, I LIKE the idea of entering retirement with our home paid for.
The Bank Run Challenge $$'s will still go into my Extra Retirement Savings which will be invested outside of the Roth.