Tuesday, December 27, 2016

2016 Mortgage Update

2017 Principle paid down: $8,757.86
Interest: $3,417.54
Loan Balance: $86,780.44

The pay-off date is now April 2033. June 2031.

Continuing to pay an extra $313 a month is really helping us move closer to our goal of moving in June of 2020 (our original 5 year deadline)

In order to move, we are hoping to have at least $150,000 of equity to use as our down payment to allow us to keep a smaller mortgage despite our high cost of living area.

If we sold our place today, we'd walk away with $138,819.89... (assuming our place is worth $240K and we pay 6% closing costs). 

Getting the Keys...

It took me $7,057.08 to get the keys to my condo and then I spent 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 me $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 me an extra $90.10... but then I had to pay an Electrician $95.00 to fix an outlet... I also got 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 gotten back 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. We didn't Itemize our taxes in 2011.
  • 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... We also got to skip a mortgage payment too! In addition, they automatically lowered my property tax value, giving us a check for $86.77.. and we saved $5,191.81 by NOT renting a place (see Housing Comps 2013)!! Additionally we ITEMIZED our taxes in 2013, saving $702.45 on a federal taxes and $503.74 on our State Taxes. (Again, this is difference we saved by itemizing our taxes, instead of taking the standard deduction -- which we could only do because we owned our condo).
  • In 2014 we did a few home repairs totaling $976.00... but even with those factored in, we still saved $3,119.04 living here instead of renting an apartment (See Housing Costs 2014 ) For 2014 we spent $14,172.96 to live in our condo, instead of $17,292 to live in an apartment. We also saved an additional $377 by itemizing and writing off our property taxes and interests.
  • In 2015 we started to aggressively pay down our mortgage again. We also spent $359.26 to fix a few things around the house. Even with the additional mortgage payments, we still saved $1,045.74 by staying in our condo instead of renting (See Housing Costs 2015, which shows an apartment would have been $20,856 a year!)
We haven't done our taxes for the year yet, and since I didn't look up housing costs for 2016 with our little guy on the way, we will just use last years numbers and assume a good 2 year lease locked us in for that price.

2016 Housing Costs: $18,869.45, Saving us $1,986.55!
  • Earthquake Insurance: $153.00
  • Homeowners Insurance: $333.00
  • HOA: $4,150.00
  • Mortgage / Property Tax / Additional Principle: $13,651.85
  • House repairs/Fixes/New Front door lock: $581.60
All of that "math" leaves us $2,325.69 in the green before we even talk about equity a mere 7.25 years later! Like the wise always say, if your going to be in the same place for 5-7 years, buying makes since!

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