Posted by Tim Stobbs on December 30, 2006
While looking at my mortgage balance recently, I realized that I have a small problem with my retirement plans. I want to retire when I’m 45, which is about 16 years away. The problem is my mortgage amortization is currently at 19 years, so I have to either accelerate the mortgage pay down by three years or live with the payments for three years in retirement.
I’ve never liked paying interest, so I think I’m going to try to find a way to accelerate the pay down by three years. Currently I have maxed out my semi-monthly payments with my current mortgage, so I have to wait until three years to pick a shorter amortization or start applying lump sum payments to it. I’m not sure which way I’m going to do it.
So like all good plans, I’m finding some holes in my plan to retire at 45. So far I don’t think I’m past the point of saving the plan, but this has proven to be a bit more of a challenge that I first thought.