Wednesday, February 15, 2012

Mortgage Update + Condo Costs (February '12)

Mortgage Update:
Principle paid down: $158.64
Interest: $492.00
New Balance: $112,298.88

The pay off date is still January 2039 which is 8 months ahead of schedule and 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 to date 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 also got to write off some of the property tax I paid in addition to taking the standard deduction. This gave us an extra $90.10 which was basically erased when I had to pay an Electrician $95.00 to fix an outlet... Then the refund I got 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). 
  • In 2011 I spent $12.97 at home depot, and $72.29 on a kitchen door, but I received a small $70 refund check from closing costs. We also saved $494.04 by living in our condo instead of renting (See Mortgage Update + Condo Costs December '11 for the break down.) Since we tied the knot in 2011 we won't be able to itemize our housing costs so there's no savings there. 
All in all, this leaves us $13,442.49 in the hole...
  • If we assume our home is worth what we paid for, then we have $7,701.12 in equity...
Leaving us about $5,741.37 in the hole.

We also assume our monthly payments are a wash since its cheaper to OWN our home then to RENT an apartment. Check out Housing Comps 2012 for how we figured that one out.

Thus far for 2012 we have spent $2,140.95 to live in our condo (Instead of $2,787.70 for the apartment) .

  • Mortgage Payments (P&I, Prop Taxes, MIP:) $1,615.95
  • HOA: $525
  • Home Repairs/Improvements: $0
  • Earthquake Insurance: $0
  • Homeowners Insurance: $0

If I sold the condo tomorrow, I'd have to sell the property for $134,422.78 to break even.
  • This assumes a 6% total commission ($8,065.37)
  • Enough money to refund the amount i'm in the hole for ($5741.37)
  • 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 8 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 9 months down the line assuming I make just the minimum payments till then ($4,282.10)


  1. I forgot to ask in the last blog, but what is "love pie"?

  2. Its got a gram cracker type crust with a chocolate pudding type filling made with cream cheese, chocolate & vanilla pudding, with whipped cream.

    It tastes better than it sounds. if you interested I can post the recipe later :)