Thursday, January 13, 2011

Pulling money out of the emergency fund

I had a CD that was coming due for renewal, and at .75% interest I decided my money was better invested in paying down the mortgage.  The CD was $1,000 so I made an extra payment on the 2nd mortgage.  So I have a mid-month mortgage update!  Here is the balance as of today:

1st Mortgage: $185,225.05
2nd Mortgage:  $20,964.56
Total Owed: $206,189.61

It's so nice to see some progress.  And assuming I'll be able to pay $1,000 at the beginning of next month, that first digit on the 2nd mortgage will be a ONE!  We're down to a little over $6,000 to the "break even" mark. 

It was a little painful to take money out of savings, but Dave Ramsey says have a small emergency fund ($1,000) and then pay down the debt.  We still have more than $1,000 in emergency funds, but they're in CDs and I don't want to cash them before they mature, so for now they'll stay where they are.

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