Mortgage: $53,606

 We’re going to make a $40K prepayment in a couple weeks, then we wait until July when our last mortgage payment will be made.

We basically put almost $40K down every year that we had a mortgage, maybe one year we did $20K and one year we did not make a payment, but that really helped us get our mortgage way down. We saved so much interest. And it’ll be great to have paid off a house in the GTA in 9 years. We’re very blessed and so fortunate. I don’t think this will be our forever home, but I’m curious what the future holds for us. It’ll be nice to have another 10 years in this house, then buy a big beautiful house. 

Update

 Well! It’s been a while but I have some good news to report. We renewed our mortgage at a 2.84% and have continued to pay down 20-40K a year. We now owe about $55K and we’ll put another prepayment in January. Then that should take us to July, and we’ll have the house paid off God willing! We’ve been blessed and fortunate. So the original goal was to have the house paid off this year, but we had a baby last year and I didn’t want to dip into savings so we didn’t put a prepayment this year. I’ll try and post again in July when the house is paid off!

Mortgage: $322,936

The reason I started this blog was because I have a goal, and I'd like to see it through.

Three years ago I bought a house and got a really good interest rate at the time, 2.74%. Now interest rates are even lower and I'm hoping they stay low for at least another two years, but so much can change in two years. From the start I have wanted to pay down my mortgage as quickly as I can, every year putting 10% down. 

The Numbers 

Original Loan: $422,000
Outstanding Balance: $322,936
Interest Paid: $29,176

So the title of my blog is "No Debt is Good Debt" and I hate interest. I pay off my credit cards in full every month. Obviously with the high interest credit cards charge everyone knows credit debt is bad debt. But everyone seems to think mortgage debt is good debt, especially with the "low" interest rate. Well if my interest rate stayed the same for 25 years, on $422K of borrowed money I will end up paying $160K in interest. That's 38% of the loan value.

So yes, there will be people out there that say its better to keep some debt and invest elsewhere, but do they REALLY realize how much interest they're paying?? Isn't it better to just pay off as early as possible and NOT pay interest? Who knows, i'm sure it can work both ways. But I hate paying interest and I especially hate the thought of having debt hanging over me. People need to understand that a mortgage is debt just like any other debt and they should not take on more debt than is necessary, and there is no reason to have it for 25 or 30 years.

Anyway my plan is to have my mortgage paid off in 5 years. As long as my husband doesn't divorce me and we stay employed in our current jobs for the next 5 years I think we can do it.