Sunday, February 8, 2015

Mortgage Balance (Update) - February 2015

If you have viewed our family's Net Worth Page, you probably already know that it does not include the equity in our home.  Although, we do realize that it is technically part of our overall net worth, we decided that since our home equity is not an asset that we can count on for income (unless we sell and buy something cheaper) we would exclude it from our net worth calculation.
For the purpose of this blog, we are more interested in documenting our loan balance rather than our home equity.  With that said, we will use the current Zillow value as our estimated home value and use it to figure out the percentage we owe on our home. For those interested, we will include the amount of our home equity, but know that we are less concerned with the equity since we have no plans to cash out or otherwise sell our home. Our main goal is to pay off our home on or before my retirement date. 

According to Zillow, our home is currently worth: $776,325 (up from our January post). Housing has cooled down a bit from the highs last summer but as long as interest rates remain low, home buying should remain steady.  This should bode well for the housing market.
Mortgage Balance (February):
$333,421 (down from $335,136 in January)
Percentage Owed:
42.9% (up from 43.16% in January)
Home Equity:
$442,904 (up from $441,189 in January)

Even though we don't consider home equity as part of our net worth, since I am sort of a statistics nerd, I still like to look at the numbers and draw fancy comparisons. :) 

But like the stock market, one shouldn't constantly look at the values.  As long as my mortgage balance continues to go down consistently each month, in the long run, I know we will be in a good position at retirement.  We love our home, our neighbors, the schools, local markets, etc. We have no plans to move anytime soon. 

Mortgage Background:
For those that have not read the Preface on our home equity, we currently hold a 15-year fixed rate mortgage at the incredibly low rate of 2.875%.  My goal is to retire within 13 1/2 years so we are setting out to pay off our mortgage on or before my retirement date. Right in line with my retirement goal, we have 13  years  - 4 months (160 months) left on our mortgage.  Nevertheless, I would like to have it paid off in another 10 years (or less). If we accomplish that, I plan to use the last few years to aggressively build our passive income to help supplement our retirement and defer tapping into the 457K as long as we can so it can continue to grow. 
Right now we are not putting any extra money towards the principal given our low 2.875% interest rate. We feel that we could make our money grow faster by investing it and while keeping the money more liquid. At a certain point, maybe in 8-10 years, we may consider using money from our investment accounts to wipe out the remaining mortgage balance.  Until then, we will continue to grow that money outside, rather than have it locked into our home.
Click on the link below to view our mortgage balance history:


  1. Love to see another mortgage murderer hanging around the PF blogoshere. Sometimes I feel like the odd man out.


    1. We are not exactly going all out to wipe out our mortgage but I guess the 15yr fixed rate sort of accomplishes that on its own somewhat. :) I can't sit here right now and say when I think my mortgage will be eliminated with the balance still above $300K but truly think that momentum and motivation to rid our family of this debt will grow and that number shrinks. :)


  2. You’re doing really well in this journey. I hope that by investing and keeping the money fluid, it will grow substantially and be your means in getting through this mortgage journey. Good luck with the rest of your financial endeavors, and thanks for always sharing your strategies and progress!

    Tasha Reeves @ WCMTG

    1. Thanks Tasha...Yes, hoping to get through this mortgage journey as quick as possible to free up more of my income to work for me. Just not willing to pay extra towards principal when I know that I have a pretty good chance to beat the low 2.875% interest I'm paying on my mortgage. :)

      Thanks for following us on our journey....wishing you nothing but success on your personal finance journey! AFFJ