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4 Sep 2012

MORTGAGE PAY UP UPDATE

This just cant wait. I decided to have a monthly mortgage pay up update. Yeah, its the most exciting issue here at SafeInvestSA at the moment. Remember how I was against paying up my mortgage only a few months ago? Things change hey. And now I am fast tracking my home loan payment like its getting out of fashion. Not to mention how excited I am whilst doing that and about the prospects of being debt free for real.

mortgage pay up update - Sept'12
See the graph with my portfolio targets to your right. My home-loan has 56% equity in it. Only this morning it was at 52% before we decided to go ahead and sacrifice a small lump sum to help us get where we want to be. Its all worth it. This one is for my peace of mind. Its not about what makes financial sense. I know I did real estate investment education, I know all about the power of leverage, but I am going against the grain with eyes wide open. I decided to be debt free, and that's mostly a psychological decision.

What this means is that my stocks, bonds or whatever else will be stuck at 20% goal achievement for a little while. It also means that hubby is off my case about this one debt. He is a happy man.

I even wanted to throw most of my emergency fund into the mortgage to take our home equity to 75% (how sweet that sounds). However, not having an emergency fund is not an option for us at this point or at any other point for that matter. Having said that, I don't see the need for the extra 31% in our emergency fund. I am only comforted by the fact that it earns a little interest there.

Moving forward, I will post a mortgage pay up update every month. I will commit to my crazy target date of July 2014. Every extra cent that comes our way is going to the home-loan. When I pay myself every month, I will be transferring that to the mortgage directly. I feel very much at peace with that decision. See you in the October mortgage pay up update. I will hopefully be entering the 60s in the home equity by then. It feels good to be doing this. If you like reading about personal finance, go ahead and like our facebook page or follow us on twitter.

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