Category Archives: Debt

Extra Payments to Mortgage Principal

We bought our house in January 2012 for $489,000. It's a renovated two story 5 bed/3 bath with a good sized pool in a nice, quiet neighborhood. We put 20% down ($97,800) and received 3% from the seller towards closing costs. We scored a good interest rate of 3.75% for a 30 year term. The home has appreciated considerably since we purchased it, with comps in the area valued ~$650,000. Our current mortgage balance is $368,895. I feel good that we bought at a very fair price (for San Diego County) Read more [...]

Yep, We Bought the $30K SUV

As I indicated the other day, we have been considering purchasing a newer vehicle for my wife.  While she chickened out on doing the deal initially, we have decided today to pull the trigger.  We'll be picking up a 2011 ML350 in excellent condition (55K miles) tonight. We have already received the loan via bank wire from LightStream (a company that we used to finance our last vehicle purchase).  Here are a few of the details: $31,768 Vehicle cost out the door $26,000 loan (2.59%, 72 months) $5,000 Read more [...]

Car Paid Off

Both my parents and my wife’s have paid off their auto loans early to save a ton on interest. Now we get to join the club. Thanks to my wife’s $4,872 ($2,255.97 net) quarterly bonus and our accelerated payments, we just paid off the 6.5% auto loan on our 2006 car. The loan was originally scheduled to be paid off April, 2012 and at the beginning of 2009 our balance was $15,586.49. It feels great to have this paid off early. We now have $450 a month to save and/or invest. Read more [...]

Raided our Savings

My wife is kicking butt in her job and my job is seems to be getting more secure. That being said, we’ve decided to throw caution into the wind and pull a large chuck of our money out of savings to pay down our auto loan. We’re sick of paying 6.5% interest each month on the auto loan and only making 1% on our savings. My parents have always paid their cars off very quickly, and saved a ton of interest as a result. We paid a whopping $6,250 to our auto loan this month, cutting it in half, Read more [...]

No More Truck

We've finally sold my truck! We negotiated with the buyer on a price of $12,600. Less than the $12,999 we wanted, but we were eager to quit wasting time. We’ve had four previous offers on the truck and all flaked out. It was starting to eat up more time that I had planned. In addition, the truck was smogged 2 months ago because we thought we had a guy that was serious about buying it. Since the smog certificate is only good for 3 months, we were working against the clock. Our 8 week ad Read more [...]

What A Difference A Year Makes

Last August, I posted about how our financial situation had significantly changed for the better from two years prior. What’s interesting about that post is that 10 days later, my wife was laid off from her job and we faced a potentially challenging time. Less than a week after being laid off, we were blessed with her receiving a new job, saving us from what could put our financial situation in dire straits.Well, now I’d like to take a look at August 2007 compared to August 2008 (see below). Read more [...]

Change in 2nd Mortgage Accelerated Payment Plan

We have been on a good roll with our 2nd mortgage accelerated payment plan, paying down an extra $1,930.53 in principle since January 2008. The extra payments to our 2nd mortgage were great to pay down the principle, but cannot be pulled back out in case of an emergency (it’s not a HELOC). So, due to the current U.S. economic situation, we have decided to deposit future funds earmarked for our 2nd mortgage accelerated payment into our savings account.We’re doing this to temporarily increase our Read more [...]

Why Pay Down The 2nd?

We recently had a friend ask us why we are paying down our condos 2nd mortgage at an accelerated rate. I think it makes sense for a few good reasons:1. It is our highest interest rate debt at 8.55%.2. Once we pay it off we can:a. Stay in our condo & have an additional $411.33/month to put towards saving for a house.b. Buy a house and pretty much break even on renting out our condo.c. Sell our condo, if necessary, and hopefully not be upside down.3. We don't have kids yet and can afford to pay Read more [...]

Slight Change In Plan

As I posted before, we have begun our 2nd mortgage accelerated payment plan. However, we are deviating from our plan a bit this month by not paying 100% of my extra check ($1859.07) to the 2nd mortgage. Instead, it will be spent as such:$500.00 to 2nd mortgage$785.00 to savings account$100.00 to my Roth IRA$474.07 to checkingI can rationalize the deviation from our plan because I found out that I will be receiving 3 months with 3 paychecks in 2008, one more than our 2nd mortgage payment plan is based Read more [...]