Well I did it. I cancelled the cable tv bill.
This will save me roughly $127 a month.
$127 a month = $1524 a year
$1524 a year for 13 years = $19812
$19,812 in savings!!!
I still have Amazon Prime and Netflix so there is plenty to watch and keep entertained.
Most of the shows I watch can be viewed on the network’s website the next day anyway.
I’ve been debating the last few weeks what I want to do with the mortgage.
There are hundreds of blogs, reddit posts, forum posts, etc… about the old question “Pay off Mortgage early, or Invest?”
I currently owe 165k on my mortgage. It’s at 4.25% (which was great at the time).
If I kept this mortgage and paid an extra $331 a month, I would have it paid off right at the end of my 13 year goal.
So my personal answer to “Pay off Mortgage early, or Invest?” is:
WHY NOT BOTH?
Thanks to Brexit, mortgage rates have dropped to the lowest in the last several months.
I spoke with a loan officer and my initial quote to refinance is 3.25%. Which would save me roughly $300 a month. That $300 savings I will put back into the mortgage as the extra principle payments. The extra $331 I would have put into the original mortgage can go towards investments.
$331 a month = $3972
$3972 a year for 13 years = $51636
$51636 in savings!!!
As a bonus, the house would be paid off by the time of F.I.R.E.
Decide what else I can save on (and eventually invest).