Home Pay-Off Spectacular: A Cool Twist

I love seeing how others are using the Pay-Off and Savings Spectaculars to track their own financial progress! 

Derek has a cool twist on how he is using his Home Pay-Off Spectacular.

He has some savings that he is willing to commit toward the mortgage balance (PINK).  When the amount owed on the house equals that savings amount, he is going to send the savings to the mortgage to kill it off.

 

Way to go, Derek!  Click HERE to read about Derek's Home Pay-Off Spectacular.

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2 Comments

  1. Jon Smock on May 9, 2008 at 7:10 am

    That’s a neat idea! Where is the savings? ING? Mutual Fund? I guess what I’m curious about is, if it’s earning more or less interest than it’s costing you on the house.



  2. Derek Schwab on May 9, 2008 at 8:42 am

    Jon, the savings is in a combination of money accounts and CD’s. The money market accounts are with Emmigrant Direct and AMtrust Direct(they usually seem to have a higher interest rate than ING Direct, although no always). The CD’s are with Emmigrant Direct and State Farm Bank.

    As far as the interest rates go, a few months ago, it was really close. Now, with the economy slowdown, the money market interest rates are a good bit lower than the mortgage interest.

    Now, the reason I haven’t already dumped the savings into the mortgage is I feel it’s important to have enough savings to live on for 6 months to a year should I be without a job or whatever (I have an AWESOME job at a church, but still need to plan). But, once the mortage is paid, I have virtually no expenses except utilities and insurance, etc., so I’ll be able to quickly rebuild that savings and seriously plan for retirement.



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