I just Converted my 30 Year Mortgage into a 15 Year

There are no tricks here. We did it by saving, making regular extra payments, and a bulk payment this past week.

Some Background

In 2012 my wife and I purchased our home. Two years later, we refinanced the loan to our current lower rate. We went from a jumbo loan to a standard loan at that point. In the years since then we have averaged about 7% in extra principal payments each month. That number has fluctuated with our ability to pay it. We have also made a principle payment once a year on average of five of our regular mortgage payments. We have been very aggressive with our savings and our attempts to attack our loan. Each step has been a big deal as early principle payments have a disproportionate impact on the loan length.

The Big Payment

This past week we finally were able to make a big payment that represents 1/3 of the remaining principle on the loan. That took a lot of years off the loan. We are now down to 13 years. At the moment we are able to pay 15% of the mortgage payment as a extra principle payment. That takes us down another 2.5 years to the last bit of the way to make the loan 15 years including the years already passed. Without that monthly payment, it will add only 2.5 years to the loan, but hey, the sooner the better.

So that’s Where We Are

I really hope that we are able to keep paying at this rate, as we will be done in December 2029. If the market holds, we might add another big payment up to half the sum we just paid. That would be the end of the best value proposition that I described in my previous article on this subject. That would shave a few more years off the mortgage.


    1. Thank you. Our logic was that our risk tolerance supported the more flexible option. Interestingly, our mortgage holder only allows 20% payments per day, so I had to do this over 2 days. Strange rule.


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