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Home > I saved over $45,065

I saved over $45,065

July 9th, 2012 at 02:05 pm

I checked my checking account online and see that the $6,000 I transferred from a mutual fund account is there and "in process."

So I called my mortgage bank and asked them for the exact payoff amount. Since that figure will vary depending on which day i pay off, I decided to wait until this Wednesday to walk into my local branch.

I had a balance of $6,122 but will only need to pay the bank $2,246 as I had $3,865 in escrow and will save myself $1,969 by paying it all off on Wednesday.

Once I do the payoff, the bank will mail me some paperwork. I will have to pay my town $53, they say, for release of the mortgage and let them know to send the next property tax bill, which is due end of July, to me directly, and from now on. That amount is $3,287 and the bill comes twice a year.

I asked the mortgage bank the total amount of money I've paid in interest in the 17 years I've had my home. I prepaid something the majority of time.

The amount I paid in interest since inception of the loan in December 1995: $82,354.

Then I asked him how much I WOULD have paid if I had made no prepayments and just did the usual fixed monthly payment for the entire 30 years of the life of the loan. This number is something of an estimate and doesn't include the first 2 years prior to a refinance I did. But his figures was $127,419.

That means I saved more than $45,000 on interest payments by religiously prepaying the mortgage, anywheres from an extra $100 to $400 a month, except for periods of unemployment.

Nice, huh?

I'm excited and anxious to get this behind me on Wednesday.

4 Responses to “I saved over $45,065”

  1. Analise Says:
    1341843575

    How exciting to pay off you mortgage! I think it's a smart financial move. Will you start your own "escrow account" to hold monthly allotments for TI? Your taxes seem on the high side, if the amount you mentioned is for only 6 mos. Reminds me of CA.

  2. patientsaver Says:
    1341843711

    Starting my own escrow account sounds like a good idea. My taxes are high, about $6600 a year. But I have no idea how I'd fund such an account given my current lack of income. I'll have to figure out something.

    It would mean saving $547 a month just for taxes.

  3. creditcardfree Says:
    1341845710

    That is some great savings! Congrats on being able to pay off your home. I'd second the escrow idea. It may not work so great without income. However, anything you can put aside towards taxes would mean less money you would need to pull from investments.

  4. CB in the City Says:
    1341847100

    Congratulations! You have saved big and you own your home free and clear!

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