$12,888 in intrest SAVED!!!!!

**TheRootedNomad** · 05-07-2008, 07:38 PM

WHOO HOO!!!! WHOO HOO!!!

I've been messing with the morgage numbers trying to see if it was really beneficial for us to be pushing as hard as we are at paying extra. Here's where we're at:

We refinanced from a 30y fixed to a 15y fixed with the first payment due 9/1/06. In the 21 months of payments since then we have paid off approximately $15,00o.00 of principal. Doesn't sound that great overall right, at least it didn't to me....BUT

if it's looked at differently:
we have paid the equivilent of 57payments (looking at the original amortirization schedule.)

Then when you take the average amountof intrest of those 36 payments we don't ever have to make it comes out to aprox. $12,888.00 in intrest we will not have to pay the mortgage company.

**AmyBoz** · 05-07-2008, 07:48 PM

Wow! That is incredible! It is definitely worth it!!!

**bumplett** · 05-07-2008, 08:05 PM

Wow! That's fantastic.

We've been talking about refing to a 15 yr.

Thanks for the great update!

**TheRootedNomad** · 05-07-2008, 08:21 PM

It wasn't the refinancing that saved that. We sent in extra money each month towards the principal SINCE we've refinanced.

Refinancing by itself saved us 8 years worth of intrest payments with an average intrest payment of about $422 a month. So 12*8 = 96 *422= $40,512.00. Those are aproximates and we have always had a relatively small mortgage compared to most people. Most people can save TONS more by converting from a 30 to a 15 year if they haven't paid off 15 years yet.

**C@rol** · 05-08-2008, 02:25 PM

Congratulations!!! Keep up the good work.

**mombottoo** · 05-08-2008, 04:37 PM

It is amazing isn't it how much you save in just interest by refinancing to a 15 year and then making extra payments! Great job!!!

**FrugalMomof3** · 05-08-2008, 08:49 PM

WOW! That's awesome, keep up the GREAT work

**Michelle68** · 05-08-2008, 08:52 PM

That's great! WTG!

--Michelle

**kcsmom76** · 05-09-2008, 04:01 PM

That is awesome. And you are going to keep adding to it. That is sweet!!!!!

**banana** · 05-09-2008, 06:17 PM

That is great!

**erstbrmom** · 05-10-2008, 06:34 PM

You don't have to refinance to a 15 year mortgage to get the benefits. Just figure out on a mortgage calculator what a payment would be IF you refinanced and pay that amount instead of the 30 year amount. This way you're not locked in if times get tough but if things are going well you can add the extra $ to your principal.

**TheRootedNomad** · 05-10-2008, 07:08 PM

No, you don't have to refinance but if it's still affordable you can usually get the intrest part of even the 1st payment as less on the 15 year at less than what your paying even several years in to a 30. When we refinanced the intrest part of our payment dropped significantly while our payment itself only went up about $8.00. (yep that's eight)

**Frugal Nurse** · 05-10-2008, 07:40 PM

That's EXACTLY how we accelerated our mortgage repayment to a zero balance.

It is absolutely amazing what is saved.

Some people don't look at that and don't consider the interest NOT paid as money saved.

Or, they accept that they must pay interest- as a 'normal' thing. and just pay the minimum monthly payment... because it's normal.

NORMAL!! NOT!

Banks are there to make money. Lots of it. It is my job to be sure they don't get lots of mine.

When we refinanced to a lower interest (years ago), we also reduced the remaining years left. At that time, it was 25 years left (we were new home-owners together)- and financed for 15 years. More of our payment went to the principle as a result. I tell ya!! what a turn on it was to see the principle move! so... we decided to pay double mortgage payment each month and the mortgage was paid for in 7 years.

Notice a few things.
We did not take out extra money to pay off any other debt.
We did not finance our closing costs into the mortgage.
We did not take out extra money to go on vacation.
We did not take out extra money to have 'just in case'
We did not take out extra money for home improvements.
We were focused.

RootedNomad... I am soooo happy you see the principle moving. Next step!

**Darlene** · 05-10-2008, 07:44 PM

We too hammered away at the principal every chance we got. We did without this & that (vaca etc.)to do it but your right, it's an awesome feeling when you reach out and grasp the mortage in your hands, paid in full, paid well before it's time.
It's going to be sweet! Keep on keeping on!

**TheRootedNomad** · 05-10-2008, 07:46 PM

[QUOTE=Frugal Nurse;897590]

Notice a few things.
We did not take out extra money to pay off any other debt.
We did not finance our closing costs into the mortgage.
We did not take out extra money to go on vacation.
We did not take out extra money to have 'just in case'
We did not take out extra money for home improvements.
We were focused.

[QUOTE]

Yep....we did not either!