113.2%

That’s the current LTV estimate on my mortgage as of today.

Instead of participating in the material slugfests that are Black Friday and Cyber Monday, I’ve instead decided to buy more of my house back from my lender.

How much more? Good question!

My house loan originated back in 2008 at somewhere around $200,000. I think I bought the place for $199,999 but who’s counting. Anyways, I came to the table with, what I thought, was enough money to satisfy the 20% equity needed to forgo PMI; a check for around $20,000. As luck would have it though, I ended up losing most of that to fees and other closing costs associated with the mortgage.

The intention had been to use that 20k to not have to carry PMI. Boy was I not only wrong, but also foolish to not know about closing costs!

Anyways, I have the numbers from the first mortgage around here somewhere in PDF form, but nothing in a fancy spreadsheet. My first lender was the famous (infamous?) Taylor Bean and Whitaker; later going bankrupt from fraud. Bravo guys.

So first mortgage aside, here is the rundown of the second mortgage and all the payments for it.

Second Mortgage

Month Owed Regular Payment Principal Interest Add’l Prepayment New Principal
1 $182,861.00 $1,140.81 $169.37 $971.45 $0.00 $182,691.63
2 $182,691.63 $1,140.81 $170.27 $970.55 $0.00 $182,521.37
3 $182,521.37 $1,140.81 $171.17 $969.64 $0.00 $182,350.20
4 $182,350.20 $1,140.81 $172.08 $968.74 $0.00 $182,178.12
5 $182,178.12 $1,140.81 $172.99 $967.82 $0.00 $182,005.13
6 $182,005.13 $1,140.81 $173.91 $966.90 $0.00 $181,831.21
7 $181,831.21 $1,140.81 $174.84 $965.98 $0.00 $181,656.38
8 $181,656.38 $1,140.81 $175.77 $965.05 $0.00 $181,480.61
9 $181,480.61 $1,140.81 $176.70 $964.12 $0.00 $181,303.91
10 $181,303.91 $1,140.81 $177.64 $963.18 $0.00 $181,126.28
11 $181,126.28 $1,140.81 $178.58 $962.23 $0.00 $180,947.69
12 $180,947.69 $1,140.81 $179.53 $961.28 $0.00 $180,768.16
13 $180,768.16 $1,140.81 $180.48 $960.33 $0.00 $180,587.68
14 $180,587.68 $1,140.81 $181.44 $959.37 $0.00 $180,406.24
15 $180,406.24 $1,140.81 $182.41 $958.41 $0.00 $180,223.83
16 $180,223.83 $1,140.81 $183.38 $957.44 $0.00 $180,040.46
17 $180,040.46 $1,140.81 $184.35 $956.46 $0.00 $179,856.11
18 $179,856.11 $1,140.81 $185.33 $955.49 $0.00 $179,670.78
19 $179,670.78 $1,140.81 $186.31 $954.50 $0.00 $179,484.46
20 $179,484.46 $1,140.81 $187.30 $953.51 $0.00 $179,297.16
21 $179,297.16 $1,140.81 $188.30 $952.52 $0.00 $179,108.86
22 $179,108.86 $1,140.81 $189.30 $951.52 $0.00 $178,919.56
23 $178,919.56 $1,140.81 $190.30 $950.51 $0.00 $178,729.26
24 $178,729.26 $1,140.81 $191.32 $949.50 $0.00 $178,537.94
25 $178,537.94 $1,140.81 $192.33 $948.48 $0.00 $178,345.61
26 $178,345.61 $1,140.81 $193.35 $947.46 $0.00 $178,152.26
27 $178,152.26 $1,140.81 $194.38 $946.43 $0.00 $177,957.87
28 $177,957.87 $1,140.81 $195.41 $945.40 $0.00 $177,762.46
29 $177,762.46 $1,140.81 $196.45 $944.36 $0.00 $177,566.01
30 $177,566.01 $1,140.81 $197.50 $943.32 $0.00 $177,368.51
31 $177,368.51 $1,140.81 $198.54 $942.27 $0.00 $177,169.97
32 $177,169.97 $1,140.81 $199.60 $941.22 $0.00 $176,970.37
33 $176,970.37 $1,140.81 $200.66 $940.16 $0.00 $176,769.71
34 $176,769.71 $1,140.81 $201.73 $939.09 $0.00 $176,567.99
35 $176,567.99 $1,140.81 $202.80 $938.02 $180.76 $176,184.43
36 $176,184.43 $1,140.81 $204.83 $935.98 $0.00 $175,979.59
37 $175,979.59 $1,140.81 $205.92 $934.89 $0.00 $175,773.67
38 $175,773.67 $1,140.81 $207.02 $933.80 $0.00 $175,566.65
39 $175,566.65 $1,140.81 $208.12 $932.70 $0.00 $175,358.54
40 $175,358.54 $1,140.81 $209.22 $931.59 $0.00 $175,149.31
41 $175,149.31 $1,140.81 $210.33 $930.48 $0.00 $174,938.98
42 $174,938.98 $1,140.81 $211.45 $929.36 $0.00 $174,727.53
43 $174,727.53 $1,140.81 $212.57 $928.24 $0.00 $174,514.95
44 $174,514.95 $1,140.81 $213.70 $927.11 $0.00 $174,301.25
45 $174,301.25 $1,140.81 $214.84 $925.98 $0.00 $174,086.41
46 $174,086.41 $1,140.81 $215.98 $924.83 $0.00 $173,870.43
47 $173,870.43 $1,140.81 $217.13 $923.69 $0.00 $173,653.30
48 $173,653.30 $1,140.81 $218.28 $922.53 $27.81 $173,407.21
49 $173,407.21 $1,140.81 $219.59 $921.23 $351.46 $172,836.16
50 $172,836.16 $1,140.81 $222.62 $918.19 $351.46 $172,262.08
51 $172,262.08 $1,140.81 $225.67 $915.14 $351.46 $171,684.95
52 $171,684.95 $1,140.81 $228.74 $912.08 $351.46 $171,104.75
53 $171,104.75 $1,140.81 $231.82 $908.99 $351.46 $170,521.47
54 $170,521.47 $1,140.81 $234.92 $905.90 $351.46 $169,935.09
55 $169,935.09 $1,140.81 $238.03 $902.78 $351.46 $169,345.59
56 $169,345.59 $1,140.81 $241.17 $899.65 $351.46 $168,752.97
57 $168,752.97 $1,140.81 $244.31 $896.50 $351.46 $168,157.19
58 $168,157.19 $1,140.81 $247.48 $893.34 $351.46 $167,558.25
59 $167,558.25 $1,140.81 $250.66 $890.15 $351.46 $166,956.13
60 $166,956.13 $1,140.81 $253.86 $886.95 $266.72 $166,435.55
61 $166,435.55 $1,140.81 $256.63 $884.19 $3,266.72 $162,912.20
62 $162,912.20 $1,140.81 $275.34 $865.47 $1,266.72 $161,370.14
63 $161,370.14 $1,140.81 $283.54 $857.28 $1,266.72 $159,819.88
64 $159,819.88 $1,140.81 $291.77 $849.04 $1,266.72 $158,261.39
65 $158,261.39 $1,140.81 $300.05 $840.76 $157,961.34 $0.00

As you can see, over most of the life of that mortgage, I was only paying the minimum payment.

At the time, I believe, I was of the mindset that I would be paying off the house for the rest of my life; that I would never be making an income significant enough to put a dent in the balance. $180,000 seemed like a LOT of money to me at the time. Let’s face it, it still is a lot of money, but it has become less appalling to me over time.

Then my mortgage was sold…again

Third mortgage

You see there in payment #65 that the balance dropped to zero. Well, that’s because my lender sold my mortgage to another one.

Month Owed Regular Payment Principal Interest Add’l Prepayment New Principal
1 $163,175.00 $838.95 $210.04 $628.90 $1,623.90 $161,341.06
2 $161,341.06 $838.95 $217.11 $621.84 $1,623.90 $159,500.04

But this lender literally didn’t last more than those 2 months. Ya see, my second lender, Cenlar, found that they could re-finance me with no closing costs and give me a lower interest rate.

So they sold me to QuickenLoans, who held me for two months or so, and then…

Fourth mortgage

…sold me right back to Cenlar.

So here’s where we’re at today.

Somewhere around the time that I paid off my last consumer debt back in 2011, I decided that I wanted to live totally debt free; house and everything.

I have this concern for my family (parents, sisters, brothers) that, at some point, I am going to be expected to swoop in and save everyone.

I’ve always been the most financial savvy in the family, as well as the most disciplined in terms of finances. I just have this feeling that I’m going to be expected to step up and save somebody, so I’m hedging against that risk.

Since I’ve started working, my income has almost tripled while my spending hasn’t changed at all. I would say I spend ~20% of my income; investing the rest.

When the size of my income shovel increased recently, I thought to myself that this was the perfect opportunity to kill off the debt once and for all.

Month Owed Regular Payment Principal Interest Add’l Prepayment New Principal
1 $159,500.04 $838.95 $224.21 $614.74 $1,623.90 $157,651.93
2 $157,651.93 $838.95 $231.33 $607.62 $0.00 $157,420.60
3 $157,420.60 $838.95 $232.22 $606.73 $0.00 $157,188.37
4 $157,188.37 $838.95 $233.12 $605.83 $0.00 $156,955.25
5 $156,955.25 $838.95 $234.02 $604.93 $0.00 $156,721.23
6 $156,721.23 $838.95 $234.92 $604.03 $0.00 $156,486.31
7 $156,486.31 $838.95 $235.83 $603.12 $628.11 $155,622.38
8 $155,622.38 $838.95 $239.16 $599.79 $628.11 $154,755.11
9 $154,755.11 $838.95 $242.50 $596.45 $628.11 $153,884.50
10 $153,884.50 $838.95 $245.85 $593.10 $628.11 $153,010.54
11 $153,010.54 $838.95 $249.22 $589.73 $628.11 $152,133.21
12 $152,133.21 $838.95 $252.60 $586.35 $628.11 $151,252.50
13 $151,252.50 $838.95 $256.00 $582.95 $628.11 $150,368.39
14 $150,368.39 $838.95 $259.41 $579.54 $628.11 $149,480.87
15 $149,480.87 $838.95 $262.83 $576.12 $628.11 $148,589.94
16 $148,589.94 $838.95 $266.26 $572.69 $628.11 $147,695.57
17 $147,695.57 $838.95 $269.71 $569.24 $628.11 $146,797.75
18 $146,797.75 $838.95 $273.17 $565.78 $578.63 $145,945.95
19 $145,945.95 $838.95 $276.45 $562.50 $9,999.99 $135,669.51
20 $135,669.51 $838.95 $316.06 $522.89 $9,999.99 $125,353.47

As you can see at payments #19 and #20, I gained a bigger shovel.

It’s not sustainable at that rate (lots of it was due to relocation/sign-on bonuses) but here’s what the projected ammortization schedule that I hope to follow.

Month Owed Regular Payment Principal Interest Add’l Prepayment New Principal
21 $125,353.47 $838.95 $355.82 $483.13 $9,999.99 $114,997.66
22 $114,997.66 $838.95 $395.73 $443.22 $2,628.11 $111,973.82
23 $111,973.82 $838.95 $407.38 $431.57 $4,378.11 $107,188.33
24 $107,188.33 $838.95 $425.83 $413.12 $2,628.11 $104,134.39
25 $104,134.39 $838.95 $437.60 $401.35 $2,628.11 $101,068.68
26 $101,068.68 $838.95 $449.41 $389.54 $4,378.11 $96,241.15
27 $96,241.15 $838.95 $468.02 $370.93 $2,628.11 $93,145.02
28 $93,145.02 $838.95 $479.95 $359.00 $2,628.11 $90,036.96
29 $90,036.96 $838.95 $491.93 $347.02 $4,378.11 $85,166.92
30 $85,166.92 $838.95 $510.70 $328.25 $2,628.11 $82,028.11
31 $82,028.11 $838.95 $522.80 $316.15 $20,128.11 $61,377.20
32 $61,377.20 $838.95 $602.39 $236.56 $4,378.11 $56,396.69
33 $56,396.69 $838.95 $621.59 $217.36 $2,628.11 $53,147.00
34 $53,147.00 $838.95 $634.11 $204.84 $7,003.11 $45,509.77
35 $45,509.77 $838.95 $663.55 $175.40 $4,378.11 $40,468.11
36 $40,468.11 $838.95 $682.98 $155.97 $2,628.11 $37,157.03
37 $37,157.03 $838.95 $695.74 $143.21 $7,003.11 $29,458.18
38 $29,458.18 $838.95 $725.41 $113.54 $4,378.11 $24,354.65
39 $24,354.65 $838.95 $745.08 $93.87 $2,628.11 $20,981.46
40 $20,981.46 $838.95 $758.08 $80.87 $7,003.11 $13,220.26
41 $13,220.26 $838.95 $788.00 $50.95 $4,378.11 $8,054.16
42 $8,054.16 $838.95 $807.91 $31.04 $2,628.11 $4,618.14
43 $4,618.14 $838.95 $821.15 $17.80 $2,628.11 $1,168.88
44 $3,796.99 $838.95 $824.32 $4.51 $0.00 334.43

And let’s be honest. When I get to payment #40, I’ll probably just write a check and close out the mortgage.

Those upcoming numbers feel huge to me.

When I frequently discuss money with family, I’m often called out for neglecting my retirement saving or investing and instead paying down on my mortgage.

The funny thing is that I have never stopped maxing out my 401k, Roth IRA, and driving cash into investments. Even while doing all the above. When I make that point to my family, they shut their lips.

Those numbers above also do not include me tapping any principal or interest that I have rolling off of my investments. Those numbers up top are 100% employment cash flow.

So I’m firmly intending to be completely debt free and commanding a very huge shovel in roughly 1.5 years; it’s basically all I focus on.

What to do after that though? I dunno. I’m not good at spending, and both my girlfriend and I have very simple tastes.

By then, my total spending will drop to ~13% of my income. That will certainly provide the hedge I had wanted in case I need to help family. It will also result in an acceleration of investments; probably substantially.

At some point I’ll just call it quits and move to a warm area where I can ride my bicycle and read books.