Pay down the mortgage challenge 2018

Because it is nearing the end of the year, you can start thinking about what you want to do next year.

Without much ado:

https://docs.google.com/spreadsheets/d/1s4YuaglIOhUHMWLxveqb0QKeZJrMQQfA6jpqRoyF7_Q/edit?usp=sharing

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  • Cool. Thanks for posting this. It looks like there's something a little wonky with the totals in the top row.

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    • Oh, never mind -- I missed the different currencies. All good!

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  • Count me in! We bought our home in June of this year. I'm 60, Mr ZB is 48 (yup, I'm a cradle robber!) But this basically means that we'll be paying that mortgage until I'm 90, unless we accelerate.  And since we bought it to contain our costs for housing as best we can, as we've watched rental rates rise around here, I think if we can also accelerate the payment schedule, it will be great to finally have it paid off, perhaps before Mr ZB hits retirement age. (I'm not planning on retiring - unless health forces me to, but I don't see any issues right now. I have none of the health concerns everyone around me has and I'm actually healthier than Mr ZB, though I'm 12 years his senior.  I'd like to see that mortgage paid off in nearly half the time if possible.  We started from day one paying an extra 200 to principle (which was approximately what the principle part of the payment was on the first payment). I'll want to accelerate beyond that, but we are also paying an extra 50 towards the principle on a car we had to finance a couple months ago that we hadn't planned to purchase so soon.

    Can you tell I don't like debt and I want them both gone?

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  • I cannot update my old post it seems, but there is a new link. Something went wrong with the old one.

    https://docs.google.com/spreadsheets/d/1s4YuaglIOhUHMWLxveqb0QKeZJrMQQfA6jpqRoyF7_Q/edit?usp=sharing

    Veronica at YNAB ping: could you edit the OP and update the link? Thanks!

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    • waterkip You got it! :) 

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  • Thanks Waterkip. 

    I am planning to pay an extra $10,000 on top of my minimum payments. Half of this should come from three paycheck months so need to find another $5,000 somewhere.

    I found this challenge really motivating last year and plan to smash the mortgage again this year.

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  • This is my third year participating in this challenge. In 2017, we paid an extra $2,597 towards the principal, and in 2016, we paid an extra $1,600. I'm hoping to pay much more in 2018, but hubby and I need to determine our goals for the new year, so for now, I've claimed my row in the spreadsheet, and will fill in my goal amount later.

    Hubby and I bought our house in 2013 with a 3.5% down FHA loan. We purchased just before the FHA rules changed, so we can get rid of our PMI when we reach 78% LTV. Our goal is to pay off the PMI early. We have about $19,000 to go to reach the PMI pay off. 

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  • Hi, is this the same as the usual savings challenge each year (e.g. YNAB Savings Challenge 2017) with a new name or a different challenge? Thanks

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    • Alice Blue Pony (6799d56a0b09) This is a separate one, which has run for a few years already, specifically for mortgage paydown. I don't know if the Savings one has been set up yet for 2018.

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    • WaldorfKitty  Ah thanks for that. I will keep watching out for the savings one then. I realize that I am a bit early :-)

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  • Hey waterkip ,

    I'm going to move this thread over to our new Community Challenges category! :) 

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  • Oooooh giggity!  I’m in. New house. New debt.  New forum. Say bye bye Wells Fargo. 

     

    The goal is to knock out the $330,000 loan in 10 years, which is about $1875 per month extra to principle.

     

    The evil genius stretch goal is to have it gone by 2024, which means about $3,000 average extra per month.

     

    Good luck everyone and happy mortgage smackdown!

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  • I decided to join this year. My goal is to reduce the total principle balance by $12k. I looked at an amortization table, and just the required payments would reduce $9k. So I'm aiming for an extra $250 per month. It's roughly the equivalent of an extra 2.25 payments.

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  • Just signed up, so excited!  We bought this April- $604k on the mortgage, $76k on the HELOC (to avoid PMI) and $40k in renovations (paid in cash)- don't judge the amounts, we live in LA.  The debt levels are giving me anxiety, especially since I'm a "paid in full" kinda gal.  Mortgage is already down to $598k and HELOC at $67.5k...chugging along and hoping to pay off an extra $15k this upcoming year.

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  • Interestingly, this challenge is available both at the 'old' forum location and this one. The same spreadsheet. No issue at all, just a chance for a split brain situation where some people perhaps only post on one of the forums. :-)

    My goal this year is to pay off the mortgage completely. About six years ago, I decided I would like to pay off my mortgage in order to reduce risk, and free up some cash flow in order to accumulate more money. Ultimate goal is to become financially independent well before regular retirement age.

    In 2012, mortgage balance was €262,000. Today, the balance is just over €30,000. In the attached graph you can review my progress. The blue line indicates regular mortgage payments and pay-off schedule. The red line shows what I achieved and what I expect to achieve in 2018. The grey line shows the cumulative interest saved over time due to the additional payments.

    If nothing breaks, then I should be able to pay off this remaining balance by October 2018. I will make regular payments of about €870 only for the first few months though. I expect to start throwing in much more cash by April.

    To all of you: best wishes for 2018, and good luck on achieving your personal goals!

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  • Hi @@optimist I as wondering how you got your spreadsheet that you shared. I would really like to set something like this up for myself. I’m reasonably proficient in excel but not mathematically minded so any tips for what to  plot so I can then end up with a graph similar would be great. Thanks. 

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  • Opportunity Knocks : My spreadsheet is really simple! All I did was:

    • Create a table, calculating the mortgage balance for each month if I just pay the regular amounts. As you can see, my mortgage would actually run until 2032 if I would not have made any additional payments;
    • Create a table, calculating the monthly interest payments until end of mortgage in 2032;
    • Create a table in which I maintain regular payments as well as additional payments I made;
    • Create a table, calculating the monthly interest payments for the scenario of additional payments;
    • Create a table, calculating the difference in interest payments due to additional payments, and calculating the cumulative interest savings per year.

    Following that, it is relatively straightforward to plot the (1) blue line which indicated the mortgage balance without any additional payments, (2) red line which indicates the balance as a result of additional payments, and (3) grey line which indicates cumulative interest saved.

    I am using LibreOffice, but I know it is just as easy in Excel. I hope this helps a bit!

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  • Thank you so much. I’m off to have a go at this. Something like this really gives me the incentive to stay focussed. 

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  • Thanks for setting this up! I joined and my goal is to pay off Php300,000 this year with a stretch goal of Php 320,000. That's around 7.5 - 8% of my total amount to pay. 

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  • January Check-in:  This month is the official start of paying extra on the mortgage.  So here's the basic break down:

    Here's where we started in Jan 2018: $330,647.91

    Principle payoff goal for 2018: $30,000

    Stretch Goal for 2018: $36,000
    _____________________________________

    As of January 7, 2018

    Mortgage Principle paid this month: $2,464.61

    Amount paid off in 2018: $2,464.61 ---->8.22% of the goal paid off.

    Total left to smackdown for 2018: $27,535.39

    Mortgage balance: $328,183.31

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  • I have finally worked out exactly when my mortgage will be paid off based on three variables thanks so much to @optimist.  Assuming the interest rate is fixed for the life of my loan (it isn't but I will adjust this each time the interest rate adjusts)  the following will occur:

    Sticking with my standard monthly repayments and paying no additional I will pay off my mortgage in February 2028.

    If I continue to pay the fortnightly amounts I am then my mortgage will be paid of by November 2024.

    Now, by doing what my reality is which is redrawing from my mortgage to cover the cost of school fees and then not using it for any other bills throughout the years I will have my mortgage paid off by June 2028.  I have estimated an increased percentage for school fees and based it on when my children finish school.

    It's funny but I feel much more comfortable now, having done the calculations, and knowing what my end goal is.  2028 sounds like a long way off but actually 10 years goes by so quickly and by knowing my reality it has given me clarity, purpose and focus and doesn't seem like an bottomless pit that I will never climb out of.

    Here's to all of us succeeding with our goals this year.

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  • I'm on track so far according to my goals.  I may be able to delay paying the school fees which might assist my interest charges on my mortgage so here is hoping they don't send me the amended invoice that I have asked for too quickly.

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  • January Report:

          Php 300,000 - Towards the preselling condo downpayment - In Progress. Saved 40,741.36 so far. (13.6%)

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  • Just joined the challenge. I'm looking to pay an extra $1,000 per month, on average, until the whole thing is paid off (only 1 year into a 15-year mortgage).

    I participate in my company's stock purchase program, so I plan to dump a good chunk of that towards my mortgage. I will see the funds from these in March/April and September/October. About 2/3 of my goal will come from these 2 transitions alone. The remaining 1/3 will be budgeted.

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  • Things are feeling very tight this month.  I have kept up with the challenge and am on track to achieve my goals that I set.  I have redrawn a smaller amount than the School would like to pay off a portion of the fees but having worked through my mortgage debt and repayments I have found (it sounds naïve when I write it down) that smaller amounts on a more sporadic basis throughout the year benefit me more significantly considering my mortgage interest is calculated on a daily basis. 

    Because I am using YNAB more effectively than I have in the past I'm finding that I have more money in my bank account built up whereas each time a true expense came along I would redraw on my mortgage to cover it as there weren't enough funds available to pay it. 

    I'm still not able to cover all of my expenses for the year, or the ones I have categories for, without some shuffling of funds between categories so it remains imperative that I focus on achieving the second income and building up this area of my life.  A mini goal for myself will be to have a clear plan in place for how I achieve the establishment of my side hustle by the end of March with clear targets to reach.  I need to set that plan up by the end of this weekend.

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