Friday, August 01, 2008
Friday Mortgage Update
Conrad and I have been so excited about our Money Merge account, we have been counting down the days until we make our first big "principle only payment" into our mortgage! Well, today was THE day! So I thought I would share our excitement with you! We paid $6500 toward the principle of our mortgage today, cutting 2 years and 7 months off of our remaining time and saving $19,500 in interest that we no longer have to pay to our mortgage company! Whoo hoo! And we've only been on the program two months!
I have had a lot of friends ask me how the money merge works. Aren't I just taking money from a line of credit and putting it toward my mortgage? No. If that were the case, we would be WAY over budget already. Since we only have a $12000 line of credit, which we took
$9500 out to pay off loans at the beginning
$6500 Principle payment to mortgage
But we still have almost $3000 left on our line of credit. It's simple finance principles of letting your money work for you instead of the bank. Seriously, if you haven't already, take the time to check the program out!