Shredding the 2nd Mortgage (April)
- by DoggedFI
- posted April 11, 2017
Man, I love it when a plan comes together.
My wife and I took out a 2nd mortgage on our current/first home (80% 1st loan, 10% 2nd loan, 10% downpayment) to dodge being stuck with PMI payments. As a result, the 2nd loan came with a slightly higher interest rate (5.5% fixed) so we were committed to paying it off very early after building our savings accounts back up. We moved in during September of 2014. See below:
January 2015 Statement
January 2016 Statement
January 2017 Statement
Fast forward to today – April 11, 2017
Just goes to show you what you can do when you really start flexing your money muscles at a certain problem. Prior to 2017, my wife and I had been paying about $100 extra on top of the monthly note of $203. We discussed and plotted out a rapid payoff plan and decided to kick it into high gear in January of this year. We are currently putting an extra $1,500 toward the 2nd loan every 2 weeks. I post this not to brag, but simply to show you that it is possible to destroy debt in record time if you really want it bad enough. Assuming no catastrophes occur, the 2nd loan will be paid off mid-June.
Any big debts you guys are working on eliminating?
Have any of you paid off your homes? If so, would you do it again or stick with investing the money instead?