Mortgage Payoff Plan Update: Apr – Jun 2019

Time for our second quarter mortgage payoff plan update! If you missed the first quarter update, you can check it out here.

I completed my first year on the new job and with that came the vesting of my RSUs!! Woot woot! As you’ll see in the numbers below these RSU’s will be the X-factor in our mortgage payoff plan. At the company I work for the RSU’s are a big part of our income. With this, I have a lower base salary relatively speaking. Instead of a base salary raise for annual performance reviews on the job I receive a stock refresh. Essentially what that means is that I’ll be receiving another set of RSU’s that start vesting next year. And our plan as of right now is to throw those at our mortgage as well.

The Numbers

If you follow us on IG, you might already know some of this or all of this because I (Kim) usually post our monthly progress on there. I like doing this because there’s a lot of people on IG that are on their different debt and/or savings journeys. Whether it’s a mortgage-free journey, debt-free journey, or saving for their 3 to 6+ months emergency fund. Typically towards the end of every month, those that are comfortable sharing their numbers will share how much money they have put towards debt or savings. It’s motivating to see others progress as well as share our own.

So, if you don’t already know our numbers (or if you just need a reminder), they are as follows for the second quarter of 2019 (Apr-Jun):

** note: Principal refers to the regular part of our payment that goes towards the mortgage principal. Additional refers to any extra money from our budget unless otherwise stated.

April

• Principal = 828.68
• Additional = 400.96
• Total: 1229.64

May

• Principal = 832.77
• Additional = 9025.06
  • Budget = 1040.22
  • RSUs = 7984.84
• Total: 9857.83

June

• Principal = 856.62
• Additional = 361.69
• Total: 1218.31

The principal balance was $135,240.09 at the beginning of 2019. At the end of the second quarter, the principal balance is now $112,124.78. We paid off $12,305.78 this quarter.

Our goal for the year is to pay off $23,000 of our mortgage principal. At the end of May, we had already met 95% of our goal for the year by paying off $21,897.

We are now at 101% of our goal and have paid a total of $23,115.31 for the year!

Final Thoughts

Kim: These RSU’s is where it’s at!! LOL. Without them, we would have only paid off $9,177 for the year. So I’m definitely thankful that we have them and have the option of using them now (versus retirement age).

Omar: The good thing for us is that we are out of debt, our house payment is about 25% of our take home pay, we can invest 15% of our income in retirement, and still cash flow for vacations and fun stuff on our base salary. Therefore, we essentially don’t need the RSU money to make ends meet. This is why we’ve chosen to use them to help payoff our mortgage. Getting out of debt, budgeting, and learning to live below our means is the gift that keeps on giving.