Wednesday, December 7, 2011

Mortgage Update + Condo Costs (December '11)

Mortgage Update:
Principle paid down: $157.26
Interest: $493.38
New Balance: $112,615.47

It's the end of the year and that means I get to factor in my savings from owning instead of renting! Woot!

But first the important stuff. 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... 

But 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 & I got to write off some of the property tax I paid on in addition to taking the standard deduction giving us an extra $90.10 in our pocket. But then I had to pay an Electrician $95.00 to fix an outlet... but the refund from my botched tile job gave us $1,265.00
  • In 2010 I saved $1,087.00 on my federal taxes and $461.00 on my State taxes from itemizing my homeowners expenses. (This is what I received ABOVE what I would have with just the standard deduction). I also spent $12.97 at home depot, and $72.29 on a kitchen door... but received a small $70 refund from closing costs that were overpaid. 
Leaving us $13,936.53 in the hole...
  • But if we assume our home is worth what we paid for, we have $7,384.53 in equity...
Leaving us about $6,552.00 in the hole.

Since this is the end of the year, I get to factor in how much money I saved owning instead of renting!

An apartment would cost us $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 year before 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 if i'd stayed at my old apartment).

Our condo on the other hand only costs us $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 (includes all utilities but electric) ($250 for 6 months, $262.50 for 6 months) = $3,075.00 a year
  • Earthquake Insurance: $257 a year
  • Homeowners Insurance: $335 a year
That's $69.74 LESS a month than the apartment (which is actually smaller than my unit). This gives me a buffer of $836.84 a year to spend on improvements or additional mortgage payments without thinking twice.

To date for 2011 I've added: $257.54 in Extra principal payments and spent $12.97 +$72.29 in repairs/modifications, leaving me with $494.04 in the buffer zone... when I add that to the hole were trying to dig out of, were left with

$6,057.96 in the hole.

If I sold the condo tomorrow, I'd have to sell the property for $134,759.11 to break even.
  • This assumes a 6% total commission ($8,085.55)
  • Enough money to refund the amount i'm in the hole for ($6,057.96)
  • and 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 10 months left on the credit, I'd be able to sell for $122,471.79
  • Assuming 6% total commission ($7,348.31)
  • and enough money to refund the amount I would be in the hole for 10 months down the line ($4,282.10) 

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