Sorry, I didn’t get back on this thread until now.
The rate of the 15 year was 2.5%
There’s now about $77k left on it and about 2 years 9 months left…
Regular monthly payment is $3650/month including impound.
Of that, $2534/month is P+I, with the rest being insurance+tax
Starting in Feb 1, interest portion is roughly $160/month, and falls about $5/month each month. Principal is $2374 and increases $5/month.
The amortization table is below.
A few notes:
1. I don’t foresee a cashflow issue or being “cash poor” if I were to pay the $77k off in my scenario.
While my net worth is currently split between roughly 50% stock, 45% real estate, and 5% cash, I can liquidate half of my stock holdings, as they are after tax.. And that’s part of what I have been doing…Selling stocks to pay down debt that doesn’t generate income (IE my primary)…Just incase 2016 is a bad year for the stock/bond market. The rentals in the real estate portion nets about $30k/year.
2. But when, I looked at the amortization table below, I saw that at most I only will pay an extra $2600 in total interest if I continue the mortgage payment schedule for the next 2 years/9 month. And to me, I thought that was a pretty cheap cost to have $77k left to invest. I guess for me, I was thinking in what, other than stocks/bonds which I’m trying to avoid.
That’s where I was thinking if I pay the mortgage off early, I’d be saying myself $2600, which came out to be about 1.18% on average per year, for the last 2 years/9 months, which is why I was thinking it wasn’t worth it.
But you folks are telling me that isn’t the correct way to look at it. 🙂 Which brings me to the original question: what is the correct way to look at it?
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Month, Total payment, Principal, Interest, P+1, total interest, principal left
