DH and I are in the middle of our home refinance. I just got a call from the mortgage loan officer at our credit union with great news!
Our home appraisal came way above what they estimated. This means there will not be PMI added on to the mortgage.
They also checked the current interest rate. At the time of application were locked in at 3.5%. When they re-checked it today, the rate went down to 3.125% and they locked that in for us.
The new mortgage maturity will be 2-years less than our current one.
Our monthly payment (including taxes & insurance escrow) will be about $145 LESS!
That means... we will could be adding $145 MORE to the principal payment so we can pay this down faster or, put that money back in savings to rebuild the emergency fund since I raided that to pay off my student loan.
We would bring to closing approximately $400 for the survey (I shredded the one we had...what was I thinking??!!...BOO!).
The credit union is paying all other closing costs. The estimated closing date is sometime in mid-September.
Good news on the leave situation at work. We were all given 56 hours of sick leave. This new feature is a use it or lose it by December 31st. We consider this a bonus because January 1st we will get 56 hours sick leave for the length of the year.
In the previous contract, we had PTO which accrued so we couldn't use it unless it was accrued. However whatever wasn't used by year end rolled over in perpetuity (in other words, there was no use it or lose it).
If you remember, with the new contract and our project migrating over to the main company caused us to lose our annual leave and PTO balances (though we received pay-outs). Our annual leave will still have the roll-over in perpetuity feature.
Our safety boots annual reimbursement was also increased from $75 to $130.
All of these features are helpful to my budgets (time and money).
Today, my final mega-payment was posted to my student loan account. My balance is now zero.
Freedom feels so good!
Next... build up 6-8 months of emergency savings.
$6,339.06 Current Student Loan Balance
-5,000.00 Business Account
-1,339.06 Savings Account
DH and I are talking seriously about this. We can easily make up the $5k in the business account and with freed up funds, I can replenish my savings quickly.
If we both see this situation the same way, in the Lord's name, I can finally pay off my student loan in full in August.
About eight years ago, I wrote the following on a yellow sticky: "FID (Financial Independence Day) June 30, 2019". I'm only a few weeks off.
The end of this debt load is near and I'm so excited I can hardly stand it!
I received an email from HR congratulating me on 10 years of service at my company.
I got to select a gift from their catalog and I chose a 2-piece luggage set from PremiumBag (worth $160)because we plan to do some serious traveling in the next few years.
A major snowflake in my favor!
My company's contract has been renewed, but with that came some changes.
I lost my vacation and sick leave which is a bummer, but was paid out.
I finally received my raise from last year and the retro pay.
As a result of the super fat paycheck, I was able to pay 1/3 of my student loan balance. My new goal is to pay it off by the end of this year. We have savings that could pay this off entirely, but I'm not comfortable taking from savings. At least not yet.
DH and I are re-financing our mortgage to a 15-year, 3.5% fixed APR. That would reduce 2 years off the life of the original loan and an estimated $60-ish reduction in the mortgage payment. Our plan is to continue to make the same payments what we were normally paying now on this mortgage. As soon as I pay off my student loan, we would double the payments. We could conceivably pay off the mortgage in 5 years.
It has taken me 12 years and 11 months to pay down half of my student loan. I am on track to pay off the other half of this loan in 12 months! Lord, please don't let financial obstacles happen during this time!
One of the greatest gifts we gave to our kids is that we enrolled them in the Florida Prepaid College fund. My oldest son just graduated college without student loan debt and my middle son is on track.
I had consumer debt which I finally paid off in March.
I still have a mortgage which we will refinance very soon to a more favorable rate.
Well, now that I have paid off my credit card, I enjoyed one pay week with a paycheck that didn't include a payment. It's amazing how much money I could be saving, spending, enjoying if I didn't have that debt.
This paycheck will be the first snowball rollover to my student loan. If I can stay on track with this fixed amount, I should have it paid off by May 2020.
In other news, I opened another business. I am now a travel agent! So now I have two businesses and my day job.
I sent in my final payment to my credit card. I'm happy... WOO HOO!!!!!
Next month I will roll over the payments to my student loan. The goal is to have it paid off by next summer.
Everybody! Do the happy dance with me!
One month in I have paid a quarter of my credit card balance. By the end of this month, I plan to add an additional $350. I hope to add a little more than that if the budget allows. My goal is to pay this off by April 30th.
DH started a new job three weeks ago and so far he has worked overtime every day. Needless to say, it is a major boost to our income and has helped accelerate our debt pay-down.
We had to reduce our scope on our side business since DH started his new job. But it was always designed to be a way to make some extra money and as a fall back if we come to hard times, which we just came out of.
I returned to the gym and started doing the classes offered. There is a 6-week challenge which I signed up for and the grand prize for most % of weight lost is $3,000, 1-year free membership, and 5 or 6 free personal training sessions. The buy-in is $35.
Now that I have become a little more fitness- oriented, I did a little research and found cross training footwear geared toward Zumba and Boot camp classes that is highly-rated. Hopefully they will soften the impact on my knees more than my current footwear. They cost $79 on Amazon.
For these type of expenses, I began to use an under-utilized checking account and I call it my "wellness" account to cover things that FSA doesn't (i.e. vitamin supplements, gym expenses, athletic wear and such). I deposit $25 a pay period into this account.
I opened a new credit card with Navy Federal Credit Union for a 0% APR for 12 months.
A year ago, I owed $18,000 on the credit card. I am down to $8,000. My plan is to put my nose to the grindstone and aggressively pay it off by Easter.
It will feel soooo goooood to finally have zero consumer debt.
So far in 2018, I earned $35 worth of Walmart gift cards just by using the search engine and doing the challenges.
My ladies' group at church adopted a family and my contribution was the stack of gift cards.
Here is my annual review on what my balances were since I started tracking:
NOV 2016 = 86,735.14
NOV 2017 = 84,213.18
NOV 2018 = 81,699.54
NOV 2019 =
NOV 2016 = 17,764.25
NOV 2017 = 15,990.72
NOV 2018 = 14,157.47
NOV 2019 =
NOV 2016 = 13,928.46
NOV 2017 = 11,564.48
NOV 2018 = 9,759.51
NOV 2019 =
*** NOT TRACKED IN 2016
NOV 2017 = 8,315.19
NOV 2018 = 0 (Paid Off Balance Transfer back in August)
Goals for 2018 to bring CC2 to zero. CC1 down to $6,000. Did not quite make it down to 6,000 as of November.
Goals for 2019: Pay off CC1. Then, snowball Student Loan by end of year get it
As I was updating my debt balances on my side bar, I realized that I can see a faint light at the end of the tunnel.
So I examined a couple of scenarios which I believe to be attainable give or take a couple of months.
I met my goal of reaching $3,000 in my emergency savings account so I can redirect those deposits toward debt payments.
I am just $7.00 shy of meeting my savings goal of saving $3,000 in my emergency fund.
Updated my sidebar. I am $200 shy of paying off the balance transfer from January. By the end of August the entire balance transfer will be done.
Then,I will continue the accelerated pay-off and my hopes, if all goes well, I can have my Visa paid off by March or April. Then I will be entirely free of consumer credit card debt.
Once the Visa albatross is gone, I will tackle my student loan. My goal is to get that paid off in two years or less.
Love seeing those balances come down!