Financial Milestones

First, the last of the Hubby’s school loans are now paid off, as of yesterday.  $17, 310.46 — BAM!  It’s gone.

What does this mean?

It means that the only debt that the Hubby has now is the mortgage.  Period.

Speaking of the mortgage…

Second, we are in the process of having the mortgage refinanced.  $42,000 remaining balance, from the original 6.5% 30-year fixed, refinanced to a 4.375% 15-year fixed.

What does this mean?

Our mortgage payment — fingers crossed — will drop from $985 a month to $611 a month, starting this coming February.  That’s LESS the rent of a three-bedroom apartment.

Simply put: Having two solid middle-class incomes but having the expenditures (and thus the consumer habits) as if we are the working poor is paying off.

No, I’m not advocating this — it’s not for everyone.  But if a person is the type who naturally leans towards simplicity and budget-thinking, this kind of financial strategy may just be the right path to reaching those financial milestones we keep hearing about, when folks pontificate about “the American Dream.”

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About lizardqueen

If single-mothering were a paid job, I'd be rich. However, it doesn't, so I write (which doesn't pay the bills) and teach (which does). I'm overly-educated in the liberal arts, but that doesn't hinder my ability to be pragmatic and realistic. YAY.
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3 Responses to Financial Milestones

  1. lizardqueen says:

    It’s official — the new mortgage payments, beginning April 1, 2010, will be $593.22/mo, fixed for 15 years.

  2. Brian says:

    Congratulations!

  3. thewbacca says:

    Congrats! Sounds like you two will be ready for whatever life throws at you. I am happy for you all. My wife and I have taken a similar approach and I can tell you we are at peace. I never want money to come in between us. We have been one income for a few years now, since we have a little one; and have acquired a little debt we are whittling away. However, we have weathered job loss, recession, fender benders, ER visits you name it. I am blessed with an increase in income that should have us debt free by the time she reenters the work force, leaving her with more options when the time comes.

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