Post holidays I have been slammed at work, so I have not finished our 2012 Annual Spending Plan nor have we completed our 2012 Savings Plan. My goal is to get it done this week, since we are one pay period into the new year.
I'm still researching and contemplating whether to continue our mortgage prepayment plan from 2011, and if yes, how much.
I think the answer to question #1 is yes. I think we will either continue a monthly principal prepayment or we will set aside prepayment amount into a savings account (meaning we will allocate funds for principal prepayment but keep it liquid in a savings account).
The answer to question #2 is still unknown and somewhat dependent on our spending plan. But, today we received our 1098 for the mortgage on our primary home. We paid down our mortgage principal by $11,847.53 in 2011, $5000 of that from prepayments and the rest from our regular mortgage payment. We also paid $13,365.03 in interest in 2011. So, I'm thinking that we might increase our principal prepayment at least a couple thousand more, if possible, so that we are paying as much in principal as we are in interest.