Monday, July 1, 2013

June'13 Mortgage Update

Our mortgage is now refinanced... and since we didn't have to make a payment for June, i'll use this post to update all our figures to the new loan amounts.

Principle paid down: $0.00
Interest: $0.00
Additional Principle: $0.00

New Balance: $113,000.00
3.75% on a 20 year fixed rate mortgage

The pay off date is now June 2033...  which is 65 months (5.41 years) ahead of our old payoff date of November 2038... which was 10 months ahead of the initial schedule from our first loan. 

If I continue to pay the minimum on my loan, I will now pay $47,791.31 in interest (plus the $21,880.76 in interest I paid in just 3.75 years before my refinance) instead of the original $116,404.23. Refinancing is EPIC! 

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...
  • 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 also ended 2009 with a refund from my botched tile job that gave us another $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. When we subtract those costs from what we saved by living in our condo instead of renting, we came out ahead $494.04 (See Mortgage Update + Condo Costs December '11 for that break down.)  We also received a small $70 refund check from over paid closing costs. 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.
  • In 2012 we finished our Kitchen/Laundry door which cost us $103.24.. We also replaced both our glass slider doors which cost us $2,957.00... and repaired our dryer for $81.42....It ended up being $3,383.47 cheaper to OWN our condo than to rent an apartment on a monthly basis,  (See Housing Costs 2012 for the break down) so even after we subtract the windows and other minor repairs, we still came out ahead $241.81 by owning our condo instead of renting... 
  • In 2013 we got $52.53 back from challenging my property taxes in 2012. I also refinanced our condo, costing us $447.00 up front for our home appraisal... but we got a check back at closing for $747.20 and a check from my old escrow account for $489.74. 
All of that Leaves us $12,272.95 in the hole...

If we assume our home is worth at least what we paid for it $120,000.00 (Our appraisal hit $150k so I think its safe to say our condo is still worth $120k), then we have $7,000.00 in equity.

Leaving us only $5,272.95 in the hole after 3 years, 9 months. If we use our home appraisal figure of $150,000.00, we have $37,000.00 in equity, giving us a gain of $24,727.05.

For 2013, we will again assume our monthly mortgage payments are a wash since its cheaper to OWN our home then to RENT an apartment. Check out Housing Comps 2013 for how we figured that one out (and those rental figures do not include us getting a pet 6 months into the year either!). For 2013 we have spent $6,199.44 to live in our condo, instead of $8,166 to live in the apartment.
  • Mortgage (including P&I, Property Taxes, MIP, & additional principle:) $4,177.44
  • HOA:  $1,575.00
  • Small Home Repairs/Improvements:$0
  • Earthquake Insurance: $0
  • Homeowners Insurance: $0
  • Refinance Charges: $447.00
Saving us $1,966.56 this year by not renting. (This number doesn't include the money we got back from refinancing either).

If I sold the condo tomorrow, I'd have to sell the property for $125,822.29 to break even..
  • This assumes a 6% total commission ($7,549.34)
  • and enough money to refund the amount we are in the hole for ($5,272.95)

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