Friday, April 22, 2016

Mortgage Balance (UPDATE) - APR 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: $772,000 (up $2,959 in the last 30-days). If you follow us, the reality is that whether our home prices rise or fall, it really doesn't mean much to our family as we have no intentions to sell or otherwise move.  We are very lucky to be able to say that we love were we are and couldn't see ourselves living and/or raising our family any other place. :)
Mortgage Balance (As of April 1st):
$308,064 (down $1,857 from our last post)

Percentage Owed:
39.9% (down from .3% from our last post)

Home Equity:
$463,936 (up $2,934 from our last post)

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 11 years and 2 months (134 months) so we are setting out to pay off our mortgage on or before my retirement date. Right now we are a few months behind the target retirement date. Currently, we have approximately 12  years  - 0 months (144 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. AFFJ,

    Great, just nice, the double impact : ) First - appreciation + declining loan balance = happy home owner. Congratulations and nice job staying on track!


    1. Thanks Lanny. Have to admit, the appreciate and declining loan balance does put us in a great mood. Can't wait to experience the feeling of NO Mortgage one day! :)


  2. Congrats. Your home is appreciating at a good rate. With only $308k owed, you are well over the hump. Nice work AFFJ.

    1. Thanks IH. To owe less than our equity is a nice feeling. I know not many will agree but changing our loan to a 15-year fix was one of our better decisions. After all, on our very first payment, we paid more principal than interest!