February 2018 Mortgage Pay-Off Update

Another update on our mortgage goals!

February our prepayments dipped down a bit, as Chris and I are making less this semester in our second jobs than in the fall. I’m okay with that, as I just felt burned out last fall.

With that said, I’m still pleased we’ve held onto our goals going forward and as of this writing, we’re only a few hundred short of dipping below the $200k mark to meet goal #1! That’ll be super exciting to reach that first goal. It’ll be another year or so before we meet the second goal.

Let’s see how last month shook out.

February 2018 Mortgage Numbers

  • Starting February: $203,678.90
  • Prepaid February: $1,728.00
  • Ending February: $201,307.27

Higher Taxes, Ugh

Progress may be slow, but it’s still progress nonetheless. The next few months are going to be costly, as we owe several thousand in federal and state taxes. I didn’t anticipate Chris picking up the extra course in the fall last year, so we were pushed into a higher tax bracket (at the lower end of it). Which means we owe a ton more to the government, yippee.

Getting Rid of Escrow

In other news, as my state tries to figure out a way around the federal tax limits on income and property tax without lowering either for their lovely citizens, we have decided to separate our property taxes and homeowner’s insurance from our mortgage payment. In the next few weeks, we’ll be removing escrow (which has really annoyed me in the past) as I finally got around to asking if we could remove it. Since we’ve been prepaying, we’re lower risk now so they said sure, take it back!

A few things will need to change on my end, like filing with the township to bill us for property taxes, and also the insurance company. In addition, I’ll need to make sure to put away each month what we put into escrow in order to cover those upcoming bills. And, I’m sure the mortage company will take their sweet time returning our escrow balance after we owe the next property tax payment.

In the end, we’ll have a little flexbility if they change our state laws on donations and property taxes, and also we’ll be well prepared to skip this paperwork once the beast of the mortgage is paid off… in three years? Here’s to hoping!

Interested to see how far we’ve come from the start?

Check out September 2017’s beginning numbers.

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2 Responses

  1. Mr. Groovy says:

    Hey, Kate. Love seeing the progress. And congratulations on dumping the escrow. It’s a little more work on your end, but you no longer need the mortgage training wheels and it will save you a little money. It’s wins like this that make FI possible. Cheers.

    • Kate Nesi says:

      Thanks Greg! Yes, I never really needed the escrow to keep us saving for it, but our old mortgage we weren’t allowed to escape it so I guess I just thought it was what we had to live with. It is so freeing to have that little bit of paperwork done! Thank you for your support on this journey!

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