Well, we pushed the button yesterday, and it will not actually take effect until tomorrow, but I figure it is worth calling today.
Yesterday, we paid off 66% of our home’s mortgage. Once it posts tomorrow, we will have paid off 75% of the total mortgage between FEB10 when we bought it and tomorrow. And we plan on paying off the remainder of the balance sometime next year.
Why? Fairly simple: our mortgage has a 4.75% interest rate; can you name a single guaranteed bank account, fund, or other monetary device that has that rate of return these days?
The "interest" portion of our monthly mortgage payment will go from ~60% to ~20%, meaning we pay down the principle on the house that much faster, and even if we do not pay off the mortgage next year, our total interest cost will have gone from an additional 50% of the home’s original purchase price to a scant 10% (in the interests of disclosure, we have been overpaying our monthly payments by about 15% every month).
I cannot imagine our mortgage holder is terribly pleased with us, given the amount of money we are denying them, but considering how our investments have been doing of late, I cannot say as though I care that much.
And, yes, we are well aware that it is entirely possible, if not probable, that our house will not sell for what we paid for it, but that does not really matter, does it? For however long we live in the house, we still would have been having to pay down the interest on our mortgage, and that is money we never get back, regardless of how much the house sells for or does not.
Our current goal is to be 100% debt free while we are still 30, and the mortgage is the only thing still in the way. I dare believe we can accomplish that.