We are now 2 months in on paying for our new mortgage. I have NOT been paying the additional $150 to make it a 10 year mortgage thus far; however, when we get our debts paid off and have our emergency fund funded to at least 3 months of expenses, I will start to add well over the $150 to make up for lost time and pay the mortgage off within 10 years or less.
When I looked online today, I was able to see how much is going toward the principal and how much is going toward interest (something I was not able to do when we had the line of credit.) Right now, 55% of our payment is going toward principal. That doesn’t sound like much, but it was over 60% going toward INTEREST every month when we had the higher interest rate.
Even though we refinanced at a higher amount than we owed (to cover the closing costs,) I am happy we did this. The closing costs will be paid off from the principal within the first year assuming we do not pay anything extra on the mortgage.