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Back on the Mortgage Payoff Train

Moving really has taken up most of my mind for the last couple of months.  But now we are pretty settled and I feel myself getting back to normal.  First order of business, kicking Jason’s booty with our mortgage payoff race.

Our Bet / Mortgage Payoff Race

Jason from Live Real, Now and I decided to make a bet at the last Financial Blogger Conference.  We are racing to see who can pay off a mortgage first.  Mr. BFS and I had about $24,500 left on the mortgage on our rental house (it is so cool to be able to call it that…).  Jason had a similar amount left on his home loan.  The rules on my end were that I needed to pay for our closing costs for the new house, save up $20,000 of padding again, and then pay off the first mortgage without touching any of that padding.  Whoever loses has to be the one to visit the other person’s place…and I rather not pay to visit the arctic

Back in the Game

Closing took FOREVER.  Then unpacking took up my mind.  But Jason, I didn’t forget about you.  😉  One of the only good things about this “3 month house build” taking 6 freaking months was that we had a bit of extra time to save.  So, we waved adios to nearly $50,000 on the day we closed.  Then we doled out nearly $4000 in moving costs, blinds, sodding, etc.

But thanks to that extra time, last week I was able to bring back up our padding accounts to $20,000 (barely).  So steps 1 (closing) and 2 ($20,000) are all wrapped up.  Now we just have to kill that first loan.  We actually aren’t bringing in the crazy big income numbers anymore (as my newsletter subscribers know – hint, hint), so we are going to have to hit the loan persistently to get it paid off next year like we planned.  In fact, I am truly aiming to have it paid off by July 2013.  It will just be a matter of making sure that any extra we bring in stays in until that wicked witch of a loan is dead.  😀

So Jason, consider this my gauntlet re-toss, lol.  🙂

Are any of you tackling any big goals this year?  How are you doing?



FYI:  I worked at a dead end cubicle job from 2005-2011 for about $30,000 a year.  I went self-employed in July 2011 and make between $80,000-$100,000 through blogging, a rental home, and professional pet sitting.  If you’d like to start your own site (link to my free step-by-step guide), I highly suggest checking out Bluehost (my referral link with a nice discount for you).  I even have all of my favorite tools on a resource page - I hope they help you too. This all gives me the time to be with my aging family members, the flexibility to stay close with my friends and family, and it should help if we finally get pregnant too!  Please contact me any time at budgetingfunstuff*at*gmail*dot*com with questions or just to brainstorm! I’d love to help!
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15 thoughts on “Back on the Mortgage Payoff Train

  1. Ok Crystal don’t let me down. I am in your corner so make sure you pull it off!!! Heck even if you don’t win you still win since you will probably pay off your home a lot faster with the competition.

  2. @Crystal a mortgage payoff race is a fantastic idea. Really ups the stakes in getting the loan paid off as soon as possible. The artic really isn’t so bad…. a little itty bitty part of me is rooting for Jason so you can have the opportunity to enjoy the artic to the fullest! Woo Hoo let’s go sledding!!!!!!

    @Glen, I was thinking the same thing, I want a loan payoff buddy/competitor too

  3. I’m going to win.

    As of today, my balance is $25,382.53. I have a small mortgage payment, so I’m paying double each month right now. Of the $990 I paid last month, $880 was applied to principal.

    In February, my renters start, so that should be an additional $800 applied to the principal.

    In December, my business partner and I are taking a large payment out of our biz accounts.

    Next week, I’ll hopefully be announcing a surprise attack.

    Realistically, assuming no big surprise windfalls, I should have it paid off by fall, but I’m hoping enough of my side projects bring in money to shave a few months off.

  4. Congrats on filling the padding account back up. That wasn’t easy I am sure.

    Good luck on the pay sown. It will be fun to have another financial goal now that you seem to be more settled.

  5. I need to find someone to have a student loan contest with so I can knock those out next year hopefully.

  6. @Glen, Mandy, Michelle, and Kim – email me if you would like me to share your emails with each other – maybe a little group of motivation? 🙂

    @Thomas, I will try my best!

    @Jason, so what I am hearing is that I need to pay off our loan before next fall…challenge accepted. 😀

    @Lance, thanks!

    @Adam, totally.

    @Jenna, good luck with the basement!

    @20’s Finances, no crap…he has me on the ropes it seems. 😉

    @Kathleen, awwww!

    @Madison, it’ll be me. 😛

  7. It really took you 6 months for a 3 month build? That is a long delay. At least you got more saved up and you are back on track.

    Pam

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