We are very close to paying off my remaining student loan, which would leave us with the mortgage as our only debt. For some reason, I had assumed until today that we would shift what we’ve been paying on the student loan into savings for retirement and the kids’ education. It had simply never occurred to me to wonder how long it would take to pay off the mortgage if we continued the debt snowball.
Out of nowhere, I began to wonder would happen if we applied the student loan payment to our mortgage. I was shocked to see that we could pay off our mortgage in just over six years.
So that’s the new plan: Pay off the mortage by mid-2015. We’ll save over $100,000 in interest. I was a little concerned that with our new plan, refinancing in January may have cost us money, but I’m happy to report that we’ll come out ahead by $5,000 (i.e., if we hadn’t refinanced and started accelerating the mortgage in a few months, we’d have paid $5,000 more than we will now).
Of course, nothing is set in stone. The new plan presupposes that we’ll be sending the boys to public elementary school or a very affordable private school, and that my husband and I will hold on to our jobs. With the current state of the economy, I don’t want to take anything for granted. But even with the extra principal payment each month, we’ll still be able to save, as we have done while paying off our non-mortgage debts, so we will remain financially stable.
And the end of being in debt is in sight!