Wednesday, May 23, 2012

Mortgage Update (May 2012)

Mortgage Update:
Principle paid down: $160.91
Interest: $489.73
Additional Principle: $2.91 

New Balance: $111,776.81

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 $111,874.44 in interest instead of the original $116,404.23. The extra $1,380.74 I've tossed at the mortgage to date has saved us $4,537.29 in interest over the life of the loan. The extra $2.91 i sent to the mortgage just saved us $7.50 in interest.

All in all, it took me $7,057.08 to get the keys to my condo... and another $17,672.29 to remodel and repair it...

In short, I was -$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... but then I had to pay an Electrician $95.00 to fix an outlet... We ended 2009 with a refund from my botched tile job that 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 over paid closing costs. We also saved $494.04 by living in our condo instead of renting (See Mortgage Update + Condo Costs December '11 for that 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 for us. 
so this leaves us $13,442.49 in the hole...
  • If we assume our home is worth at least what we paid for it, then we have $8,223.19 in equity...
Leaving us about $5,219.30 in the hole after 2.75 years.

We also assume our monthly mortgage 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 $4,127.68 to live in our condo (Instead of $6,969.25 for the apartment) .
  • All Mortgage Payments (including principle, interest, property taxes, MIP, and additional principle:) $3,885.86
  • HOA: $1,312.50 ($262.50 a month)
  • Home Repairs/Improvements: $0
  • Earthquake Insurance: $0
  • Homeowners Insurance: $0
If I sold the condo tomorrow, I'd have to sell the property for $132,975.21 to break even.
  • This assumes a 6% total commission ($7,978.51)
  • Enough money to refund the amount i'm in the hole for ($5,219.30)
  • 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)
But if I wait out the credit, in November of this year I'd be able to sell for $122,378.23
  • This assumes a 6% total commission ($7,342.69)
  • and enough money to refund the amount I would be in the hole for 8 months down the line assuming I make just the minimum payments till then ($4,238.93)

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