Mortgage Conversation

Grace from the CFO Mom Blog is currently tackling her mortgage and she’s a definite source of inspiration!

When we bought our home 7 years ago we did it on a 25 year amortization rate. When we renewed the mortgage 2 years ago we went with a better deal but they forced us to sign up at a 25 year amortization rate. That would mean it would now take us 30 years to pay off the house.

Dog with caption "Not Amused:

I knew I wanted to pay this thing off in 25 years. However, we had debt that I wanted to kill first. Now that my debt is gone and we’re hoping to banish ML’s for Christmas we’re turning to new goals. ML is on board with paying off the mortgage if it doesn’t negatively impact his current standard or our other dreams. He’s currently in the camp that knows that mortgages are never-ending beasts since many of our friends parents will be retiring with a mortgage.

Having found the PF community here I know that I don’t have to live and die with a mortgage. I didn’t realize how important banishing it was until I met with an investment advisor yesterday and as we were speaking of goals. He was showing me plans with the assumption that I’ll have this debt hanging over me for another 23 years. That’s when I pipped up with, “My first goal is to be mortgage free in 15 years.”*

Dean Winchester asking What- Uh- Excuse me- What?

Not what I was expecting to come out!

As this isn’t ML’s goal and I do make more I feel that it’s my responsibility to up my contribution to the mortgage. Being a budget geek I spent some time today playing in Excel  figuring out what that would look like.

It looks a bit daunting and unfortunately it can’t be automated as I’m on allowed to minimally increase my payments once per annum and can make up to 2 extra lump sum payments per year. Though there is also a cap on the amount I can contribute.

This is definitely not something I can do on my own as I’ll be taking from our other savings goals in order to achieve this. So I’m looking forward to a long drive that we’re planning to take this weekend to continue our conversation regarding our goals as individuals and as a couple.

No matter what we decide I know that I will want to use some of the debt repayment money towards paying off the mortgage. In light of the restrictions placed by the company I will be adding it as a savings line in my savings account.

As today’s Excel is based on rough estimates, once ML and I figure out all our goals I’ll be able to get a better handle on how it’s all going to go.

 

*Since we do all our finances separately we also work with separate advisors so ML was not present for that little reveal :).

Image from here

GIF from here

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4 thoughts on “Mortgage Conversation

  1. Pingback: Mortgage Update – Saving Without Scrimping

  2. We had a 35 year mortgage when we bought this house 5 yrs ago. When it came up for renewal we dropped it down to 25. If my math holds strong, we’ll be mortgage free in 15 years as well. Before regular retirement age with plenty of time to spare.

    Liked by 1 person

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