Saturday, May 7, 2011

Mortgage Update + Condo Costs (May '11)

Yesterday was payday friday... so its time to pay the mortgage and update everything!

New Balance: $113,701.99

The pay off date is still January 2039... 8 months ahead of schedule. If I continue to pay the minimum on my loan, I will pay $111,996.75 in interest instead of the original $116,404.23, saving me $4,407.58 in interest over the life of the loan...

Total Condo Costs: -$24,729.37 

  • Money paid to acquire the property and get keys: -$7,057.08
  • Money Spent to Remodel and Repair Property: -$17,672.29

Credits that help me bring that number closer to zero:

  • First Time Home buyers Credit: +$8,000.00
  • Current equity: +$6,298.01 (assuming property is worth the purchase price) 
  • 2009 Prop Tax Deduction: +$90.10
  • Electrician costs 2010 -$95.00
  • TILE Refund +$1,265.00
  • 2010 Federal tax break +$1,087.00*
  • 2010 State tax break +$461.00*
*The difference between what I would have gotten back claiming the standard deduction... and the increased amount from itemizing the housing expenses.*

Total Credits $17,106.11 - Total Costs: $24,729.37 = Current amount in the hole: -$7,623.26

If I sold the condo tomorrow, I'd have to sell the property for $137,600.66 to break even.

  • This assumes a 6% total commission ($8,256.03)
  • Enough money to refund the amount i'm in the hole for ($7,623.26)
  • & enough money to cover the $8,000.00 tax CREDIT i'd have to repay for not living in the property for 3 years. ($8,000.00)

If I wait out the remaining 17 months left on the credit, I'd be able to sell for $122,980.40

  • Assuming 6% total commission ($7,378.82)
  • & Enough money to refund the amount i would be in the hole for taking into account for the additional principle reductions from 17 more payments ($4,760.88) 


  • I look at my monthly costs associated with my mortgage as a wash. If i add up EVERYTHING I spent on my condo in a given year, its equivalent (or less) to what my annual costs would be if I lived in my old apartment complex. (See the post: Apartment verses Condo
  • It would have cost me $14,537.00 for the year to live in the apartment, or $1,211.41 a month (this figure includes a security deposit, the additional utilities i'd have to pay, and the going rent at the time I would have signed a new 12 month lease)... Before any tax deductions my TOTAL CONDO costs, including additional money tossed at the mortgage, for 2010 was $14,481.00 for the year, or $1,206.75 monthly... pretty dead even.  

Each November, I go to the apartment website and figure out what the going rate is for the apartment is, I factor in a lease renewal (no security deposit), and add those utilities and renters insurance in. I take those figures and compare all the costs for the apartment to get my annual expenses and then compare them to what my condo costs.

Here's the 2011 break down for Apartment Costs (Assuming 12 month lease renewal so no security deposit)

  • Rent at time of lease: $1,095 monthly
  • Trash: $15 every 2 months
  • Water: approx $30 monthly (no wash dryer in unit)
  • Gas: $25 monthly
  • Laundry $15 monthly
  • Renters Insurance $11.00 monthly

Total: $1,183.50 or $14,202.00 a year.

Taking all my current information, here's how the condo stacks up right now:

  • HOA ($250 a month), Annually $3,000.00
  • Property Taxes, annually will be $1,266.84 
  • MIP, annually $623.64
  • Home owners insurance, annually $322.00
  • Earthquake insurance, annually $261.00
  • Mortgage payments (principle and interest), $7807.68
  • Extra mortgage principle to date: $257.54

Total: $13,538.70, giving me a savings of $663.30 assuming nothing breaks in my condo and my monthly expenses stay the same (without even factoring in principle reduction and any tax breaks i'll get when i file at the end of the year.)

With Rental prices INCREASING EVERYWHERE, to rent that same place I use in my calculations, I'd have to pay $1,199.00 a month in rent alone right now... 

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