Money To Live

February 13, 2012

Mortgage milestones

Filed under: debt,home,loans — by moneytolive @ 10:21 pm

Paying off a mortgage is a long slog. While we make extra principal payments each month, it is sometimes hard to get excited about our progress.

Last month, though, we reached an important milestone. Our monthly principal payment is now larger than our monthly interest payment!

As with any big goal, it is helpful to break it down to more achievable mini-goals. Any time we reduce the principal by another $10,000, that’s reason to celebrate. Last year, we got excited about our mortgage balance when it matched our non-home assets. Theoretically, if taxes and transaction fees did not exist, we could pay off our house with our other investments and retirement savings. Since paying off the mortgage is only one of our financial goals (along with saving for retirement, a new car, and a rainy day), we won’t actually do this.

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