Wednesday, September 21, 2016

Mortgage Balance (UPDATE) - SEPT 2016

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: $823,277 (up $14,086 in the last 30-days).  Since our post in JUNE, we have seen our home value grow a total of $28,627 (from $794,650 back in June). How is that for ROI?! :)

It's fun to calculate and certainly makes you feel a little bit more wealthy but, 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 September 1st):
$297,709 (down $1,880 from our post last month)

Percentage Owed:
36.2% (down 1.2% from our post last month)

Home Equity:
$525,568 (up $21,874 from our post last month)
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 10 years and 9 months (129 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 11  years and 7 months (139 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 6-9 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 job paying that balance down. I know many times people with appreciating real estate are looking to use the property as an ATM, especially in California. I don't think my house has appreciated 28K in 5 year let alone 1 month.


    1. Thanks MDP. I think it is all relative. When home prices are as high as they are in California, a $28K is not a huge percentage. Our goal is to have a paid for home one day (preferably before retirement), so cashing out those gains or otherwise using our equity as an ATM is not an option. :)

      Thanks for stopping by, AFFJ

  2. My house went up to according to Zillow. The one year forcast is even better. Spring might be the time to downsize for us. Glad you like where you live.

    1. Glad to hear your home values went up DFG. Real estate in the US has done well this year. Hopefully you can sell high when its time to downsize.

      Best wishes, AFFJ

  3. Congrats on the home value increase! Must be nice to see the ROI progress. :)

    1. Thanks ME. To be honest, it is nice to see the home values and equity grow but I get more joy see our loan balance shrink. :) AFFJ