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$4,719.26

March 26th, 2016 at 01:13 pm

That's how much we have left to pay on the mortgage before we're FREEEEEEEEEEEEEEE!

The tax refund plus regular payment hit this morning.

Now, can I have your thoughts for the pay off strategies? If you were me, which one of these would you choose? (Or, do you have an option I haven't considered?)

A. If we did nothing and continued making our normal monthly payments, we'd have four more months of payments. (This timetable includes sending our state tax refund to principal when it comes, as well). So, our last payment would be in August.

B. If we took this amount out of our EF to pay it off now...It would take four paychecks, or two months to put that money back into the EF. Or, three checks, if we put the state tax refund right into savings when it arrives.

C. Wait for the state tax refund, send it to the mortgage, then take the remaining balance of about $3,700 out of savings to finish off the house. It would take three to four paychecks to put it back into the EF.

Any thoughts??

Posted in Uncategorized | 20 Comments »

20 Responses to “$4,719.26”

  1. Ima saver Says:
    March 26th, 2016 at 01:17 pm 1458998257
    1458998257

    I would take the money out of the emergency fund and pay it off now. (You know you will pay it back.) Then celebrate!!!!!!!!

  2. creditcardfree Says:
    March 26th, 2016 at 01:46 pm 1458999992
    1458999992

    I sat here for a moment really thinking about it before typing my answer. I think I would pay it off with the EF. I don't usually say that, but I think in this case of the last few thousand of a mortgage I would be so excited to be done!! And it will feel good getting started saving money each month, too.

  3. Beawealthywarrior Says:
    March 26th, 2016 at 01:50 pm 1459000202
    1459000202

    When I was that close, I took money out of other savings I had like car replacement fund or vacation fund and knocked the mortgage out!!! Congrats this is an awesome achievement!!

  4. ThriftoRama Says:
    March 26th, 2016 at 02:06 pm 1459001214
    1459001214

    Also, fyi, The thing with regular mortgage payments is that only half goes to the principal. The other half goes to escrow, so it slows things down.

  5. CB in the City Says:
    March 26th, 2016 at 02:44 pm 1459003460
    1459003460

    I'm on the conservative side. I would continue to pay on schedule. I would not be comfortable with eliminating an emergency fund. It's there for an emergency, and you never know when that will happen.

  6. ceejay74 Says:
    March 26th, 2016 at 02:56 pm 1459004174
    1459004174

    Pay it off!!!!!!!!!! Big Grin

  7. Butterscotch Says:
    March 26th, 2016 at 03:07 pm 1459004863
    1459004863

    Assuming you wouldn't be usin every last dime of you emergency fund - pay it off!!! Congratulations!!!

  8. MonkeyMama Says:
    March 26th, 2016 at 03:17 pm 1459005428
    1459005428

    Not enough info to say. How much efund would you have left? Are you really that illiquid? You don't have any other investments? ROTH IRAs? Credit card that could be used in emergency and paid off within grace period?

    At the end of the day, I expect it probably doesn't make a whole lot of difference either way.

  9. MonkeyMama Says:
    March 26th, 2016 at 03:20 pm 1459005644
    1459005644

    P.S. I mean it doesn't make much difference from a *financial* standpoint. Which would be a reason to just do it, since clearly it makes a big difference from a psychological standpoint.

  10. ThriftoRama Says:
    March 26th, 2016 at 03:35 pm 1459006504
    1459006504

    To add more info, we'd have $15,000 left in the EF.

  11. MonkeyMama Says:
    March 26th, 2016 at 03:43 pm 1459007036
    1459007036

    In that case, pay it off already!!

  12. ThriftoRama Says:
    March 26th, 2016 at 03:45 pm 1459007129
    1459007129

    That's what hubby says. I'll call the bank this week for the pay off amount, and then I'll transfer the cash. Hazzah!

    Then, of course, I'll assemble the new savings plan to put it all back and more. I can't believe I'm finally getting back to mortgage free. Our financial lives will be soooooo much more flexible!

  13. CB in the City Says:
    March 26th, 2016 at 06:29 pm 1459016982
    1459016982

    I agree. With $15K left, pay if off!

  14. crazyliblady Says:
    March 26th, 2016 at 08:47 pm 1459025234
    1459025234

    I have another suggestion. At first, I was thinking you should leave the savings alone, then I noticed your reply that have more than 15K in savings. I would pay it off with savings. Then, when the tax refund arrives, pay it back to the savings. Congratulations! This is awesome! Big Grin

  15. scfr Says:
    March 26th, 2016 at 09:55 pm 1459029340
    1459029340

    I'm a bit late to the conversation and it sounds like a wise decision has already been made. Hurray!

  16. rob62521 Says:
    March 27th, 2016 at 03:08 am 1459048112
    1459048112

    Pay it off! Then be diligent about replacing the money. What a great achievement!

  17. debtfreeme Says:
    March 27th, 2016 at 03:20 am 1459048845
    1459048845

    WOOHOO!!

  18. LuckyRobin Says:
    March 27th, 2016 at 06:48 am 1459061294
    1459061294

    When I got that close, I used part of our Emergency Fund. We still had enough money in the Emergency Fund to cover pretty much anything short of a job loss. It was worth it to us to have that mortgage gone. The we worked really hard to build the EF back up. I asked the same question here when I wanted to do it, LOL.

  19. VS_ozgirl Says:
    March 28th, 2016 at 10:25 am 1459160719
    1459160719

    Nice! I'd pay it off too!

  20. ThriftoRama Says:
    March 28th, 2016 at 02:11 pm 1459174277
    1459174277

    We have initiated Plan B. Thank you for all of your input!

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