It’s been a while (Dutch) since I lasted posted something unrelated to my stock buys, received dividend or my failing crypto currencies. As part of our journey to more freedom and financial independance I chronicle my DGI journey in generating monthly dividend income, but that’s not the entire story. Another part is me continuously improving our financial situation by optimizing our cash outflow. One large expense we have is our 30-year mortgage on our house.
When we bought our house in 2006 we split our mortgage into two separate parts; the largest portion is a “savings”-mortgage (spaar-hypotheek) and a smaller portion that’s essentially rent (aflosvrij) since you only pay the interest and not the principal.
The latter part of our mortgage consisted of no less than €68.000 euro. Meaning that at the end of our 30 years of mortgage, we would have payed €89.760 (bruto) in interest and still be €68.000 in debt! Talk about a money making machine for the bank / mortgage company!
Unfortunately, the first ten or something years of our mortgage I wasn’t as financially educated as I am now, so we didn’t do much in order to optimize the situation. When we began to look more seriously at our finances (and our salaries were starting to increase) we decided to see what we could do about the “rent”-part of our mortgage and we started to make additional payments to slowly lower the monthly interest and whittle down the principal.
That is until last friday 17th of September 2021. On this day we made our final payments and succesfully payed of that part of our mortgage! Going from paying €250,- of interest monthly to €0 was a long process, but we are so happy and proud that we made it!
Next step, investigating what we can do about the other part of our mortgage. To be continued!