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Mortgage smackdown

October 28th, 2011 at 02:13 pm

I've been watching the Dow and one day last week when it had climbed to a relative high of about 11,880, I sold one of my mutual funds worth about $16,500. After receiving the money in my checking account, I marched over to my mortgage bank and presented them with the check.

I'm now happy to report my mortgage balance is just $10,582. She said it would still be another 19 months before I pay it off (assuming no prepayments), which is a bit longer than I estimated, but perhaps I can put some of my tax refund toward it.

I can't really consider selling a portion of my remaining taxable mutual fund becus it's an international fund and has been doing quite poorly amid all the hubbub about the Euro, Greece and Italy. I don't want to take a big hit when I sell the fund, so for now, I'm content to have chipped away at the mortgage to this level.

I asked the teller for two key pieces of info:
1. How much actual interest have i paid to date, over the life of the loan? (I'm in year 16 of a 30-year mortgage), and
2. How much interest WOULD I have paid over 30 years with NO prepayments?

Now granted, these numbers will change becus the loan still isn't completely paid off, but we're getting pretty near the end here and I just wanted to see.

She told me I have paid about $67,301 in interest over the 16 years I've owned the house. Boggles the mind, doesn't it? But if I hadn't been prepaying all these years, I would have paid, over the course of the 30-year loan....drumroll...$125,336.

So I haven't quite cut my interest payments in half, but pretty darn close. I'll revisit these figures again once I finally pay it off.

15 Responses to “Mortgage smackdown”

  1. laura Says:

    Good luck with the interview! How exciting about your mortgage!

  2. CB in the City Says:

    Good for you! Both for the interview and the interest savings!

  3. ceejay74 Says:

    BAM! Take that, mortgage. Wink Try not to freak about the job; you're a survivor, so it's not like everything is riding on this (even though it feels like it). They want a good worker, you are a good worker; chances are it will turn out well. But you will get by if it doesn't. Smile (This is not to say that I wouldn't be freaking out in your shoes, by the way. Big Grin)

  4. Jenn Says:

    CB, I think it's a good sign that the interview will be with several folks. We only do that once the candidate has 'passed' all the requirements and looks good. Then we'll set up interviews with several folks in varying positions on the team to make sure that his personality will fit in.

  5. ceejay74 Says:

    Oh, and I feel like I fare better in the long interviews, because it gives you time to calm down and warm up to people. I always start out a little stiff, tongue-tied and nervous, so if it's a short interview, that's all people get to see of me. In a longer one, my personality starts to come out and I find my voice again.

  6. creditcardfree Says:

    Good luck with your interview!

    And congrats on a lower mortgage balance!!

  7. starfishy Says:

    Congratulations on getting the interview!! Good luck next week - sounds like you are doing what you can to prepare. Cool about the mortgage payment, too!

  8. cheapiepoo Says:

    Congratulations on both the interview and the savings! If you have already been given a writing test, I'm sure it is just a matter of seeing if you are a good fit with the team. I agree with Jenn. Don't fret. Imagine yourself successfully acing the interview, prepare, have confidence and you will be fine. Power of positive thinking.

  9. Ima saver Says:

    I am thrilled that you got the interview! Great job on paying that mortgage down too!

  10. littlegopher Says:

    The savings on the mortgage is amazing! Great news on the interview - best of luck!!

  11. NJDebbie Says:

    I have my fingers crossed for you. I really, really hope you land the job. How awesome that you have the mortgage down to a little over $10K.

  12. Shiela Says:

    Good luck!

  13. FrugalTexan75 Says:

    Good luck on the interview!

  14. PNW Mom Says:

    Good luck on the interview! Fingers crossed!

  15. My English Castle Says:

    The best of luck on the interview. Sending you good wishes for lots of sprezzatura!

    Great job on the mortgage. You're an inspiration to all of us!

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