Tuesday, October 18, 2011

Mortgage Update + Condo Costs (October '11)

Mortgage Update:
Principle paid down: $155.89
Interest: $494.75
New Balance: $112,929.30

The pay off date is still January 2039 which is 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 extra $1,339.10 I've tossed at the mortgage has saved us $4,407.58 (not bad).

It took us $7,057.08 to get the keys to my condo... and another $17,672.29 to remodel and repair it... in short, we were -$24,729.37 in the hole on day one...

Thankfully the hole is getting filled in a little bit each and every month.
  • In 2009 I got the First Time Home buyer's Credit giving us $8,000.00. 
  • In 2009 I got to write off some of the property tax I paid on in addition to taking the standard deduction. This gave us an extra $90.10 in our pocket.
  • Then I had to pay an Electrician which took $95.00 from our pockets... 
  • But the refund from my botched tile job gave us $1,265.00
  • I saved $1,087.00* on my federal taxes and $461.00 on my State taxes in 2010 from itemizing my homeowners expenses. (This is what I got above claiming the standard deduction).
  • In 2011 I spent $12.97 at home depot, and $72.29 on a kitchen door.
  • Also in 2011, I got a small refund of some of my Closing Costs which put $70.00 in our pockets.
  • Then we have our current equity $7,070.70 assuming the property is worth our original purchase price
Leaving us about $6,865.83 in the hole.

If I sold the condo tomorrow, I'd have to sell the property for $135,962.64 to break even.
  • This assumes a 6% total commission ($8,157.76)
  • Enough money to refund the amount i'm in the hole for ($6,865.83)
  • & enough money to cover the first time homeowners 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 12 months left on the credit, I'd be able to sell for $122,995.48
  • Assuming 6% total commission ($7,379.73)
  • & enough money to refund the amount I would be in the hole for 12 months down the line ($4,776.14) 
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.

$14,202.00 for the year, or $1,183.50 a month. This figure includes the rent, trash, water, gas, laundry, & renters insurance. It also assumes I stayed in the previous unit i did the prior year so I wouldn't have had moving costs or a new security deposit. I took this rate back in November of 2010 (when I would have had to lock in a new lease rate).

$13,365.16 for the year, or $1,113.77 a month

  • Mortgage (MIP, Property taxes, Insurance, Mortgage) = $808.18 a month $9,698.16 a year.
  • HOA ($250 for 6 months, $262.50 for 6 months) = $3,075.00 a year
  • Earthquake Insurance: $257 a year
  • Homeowners Insurance: $335 a year

$69.74 LESS a month than the apartment (which is smaller than my unit). This gives me $836.84 a year I can either toss at the mortgage or use for home improvements while STILL breaking even BEFORE any tax deductions are even considered.

To date for 2011 I've added: $257.54 in Extra principal and spent $12.97 +$72.29 in repairs. leaving me with $494.04 that I can still spend on the condo AND break even.

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