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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.  :-D

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

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

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15 comments to Back on the Mortgage Payoff Train

  • Having a competition sounds like a great way to stay motivated while paying off debt. I might have to look into doing that with someone.

  • 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.

  • @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

  • 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.

  • 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.

  • I think having a contest is a GREAT way to pay off debt quickly. I need to do this also!

  • Nice turnaround and good luck on the payoff. That will be a nice relief when it is gone I am sure.

  • I’m kicking butt with this year’s goal: buying a house, check! Now I just need to work on the basement now that the sun is gone and the rain is here.

  • I am looking forward to watching this competition pan out. Good luck! Better get working on bringing in that income. ;)

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

  • A contest is such a motivating way to get a goal accomplished faster! Cant wait to see who wins. :)

  • @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. :-D

    @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. :-P

  • Pam

    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

  • […] I mentioned last month, Crystal and I are in a race to pay off our mortgages.  The loser(henceforth known as […]