Sunday, August 14, 2011

Mortgage Update + Condo Costs (August '11)

I got paid on Friday so we sent our mortgage payment in.

Principle paid down: $154.54
Interest: $496.10

New Balance: $113,240.40

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. The little extra I've tossed at the mortgage has saved us $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)

How we are breaking even:
  • First Time Home buyer's Credit: +$8,000.00
  • Current equity: +$6,759.60 (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*
  • 2011 Home Depot -$12.97
*The difference between what I would have gotten back claiming the standard deduction... and the increased amount from itemizing the housing expenses.*

Current amount in the hole: -$7,174.64

If I sold the condo tomorrow, I'd have to sell the property for $136,651.00 to break even.
  • This assumes a 6% total commission ($8,199.06)
  • Enough money to refund the amount i'm in the hole for ($7,483.04)
  • 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 16 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 16 more payments ($4,760.88) 
If I add up what I spend on my condo in a given year, its equivalent to (or less) to what my annual costs would be if I lived in my old apartment complex... So all my monthly expenses are a "wash" since I would have thrown the money away paying for rent.  For 2011 the figures are:
  • Apartment: $14,202.00 for the year, or $1,183.50 a month [this figure includes the rent, trash, water, gas, laundry, & renters insurance, and it assumes I stayed in the previous unit i did the prior year (ie- no security deposit) and signed a new 12 month lease].
  • Condo: $13,281.24 for the year, or $1,106.77 a month [this figure includes my mortgage, hoa- (which includes water, trash, & gas utilities), taxes, mip, earthquake insurance, and homeowner insurance]
$76.73 LESS a month than the apartment... giving me $920.76 a year I can either toss at the mortgage or use for home improvements while STILL breaking even BEFORE tax deductions are even considered. To date for 2011 I've added: $257.54 in Extra principal and spent $12.97 in repairs. Total: $270.51/$920.76

3 comments:

  1. Where'd ya get your cool progress bars? I like them better than my ticker.

    ReplyDelete
  2. I did some web surfing and came across a site posting some free code and I just learned how to tweak them myself for each update...

    If you'd like, I can email you the code and highlight the parts you would need to change.

    Email: Southcountygrl@gmail.com

    ReplyDelete