I recently wrote about how we just refi'd into a fantastic 15 year mortgage with low rate. (Wow, what a great feeling.) The 2nd payment has posted and I have additional insight on how awesome, fantastic and powerful a 15 year mortgage can be.
In just 2 months we have knocked almost $1800 off the balance. With our old mortgage it took 5 months to reach the same figure. One year from now we should expect to have paid down the balance by almost $11,000! And of course as time goes on, the monthly payment will accelerate. And less money-waste to interest and the false sense of value from deducting the interest on the tax return.
One thing that surprised me is that the additional money applied to the principle for the 2nd month is only $3 more dollars. I expected it be closer to $10 but that was just a guess. The good news is this difference will also accelerate. And I round up the monthly payment to the next dollar each month, adding an extra .46 cents. So every 3 months it'll average an additional $1.38 off the loan balance. This all just adds to the snowball of further mortgage debt reduction. One day this thing might just be paid off!
Have you refi'd into a 15 year and felt as good as us? Did you regret the additional payment amount?