August 2009 Mortgage Reduction Report

The first ten days in August were spent on a family vacation in Kelowna which cost approximately $3000. This expense has been deferred to September thanks to Mastercard.

We were able to make our additional mortgage payment of $4700. Still on track for accomplishing our goal. The balance of our mortgage at the end of August will be around $266,000

Looking ahead to September we may come up a little short for the extra payment. The credit card used for our vacation will have to be paid off first.  I was able to do some business in the first couple of weeks in August which took a couple hours away from the fun and frolick, but will likely cover our vacation expenses. Technology is wonderful!

Back to school expenses will need to be paid in September along with our cost of the fence.  The neighbor will be giving us a bill for our portion of the fence and has generously contributed the labour.  This is a good thing, computers and money may be my gig, swinging a hammer is definitely not my forté.

It is interesting that the extra payments on our mortgage in the last 14 months have saved us $125,000 in interest and reduced our 40 year amortization to 23.3 years. Numbers like that are motivating.  If all goes well the mortgage will be paid off in less than 4 years and we will have paid less than $42,000 in interest on an orginal mortgage of $316,000.

To wrap up, we have now paid off 16% of our original balance and are on track to meet our goal.