Sunday, April 23, 2017

Mortgage Balance (UPDATE) - APRIL 2017

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: $831,799 (up $7,036 in the last 30-days according to Zillow). I don't understand Zillow and I don't think I ever will.  Last month, I posted that our home was worth $846,208 according to Zillow.  This month, our home value went down roughly $15K, however, Zillow site states that it is up $7,036 in last 30-days. Say what *&%?

Mortgage Balance (As of April 1st):
$285,424 (down $1,911 from our post last month)

Percentage Owed:
34.3% (up .4% from our post last month)

Home Equity:
$546,375 (down $12,498 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 2 months (122 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 0 months (132 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. Nice work AFFJ. I think you're doing the right thing investing the difference rather than paying down. With my mortgage, I'm paying it down to $150,000 as soon as possible, then I'm going to do the same thing, pay it of as scheduled and invest the difference.

    1. Thank you IH. Investing the difference is really where we have seen the needle move upwards at a faster rate. Best of luck in getting there soon! AFFJ

  2. Great going on the home equity.
    Zestimate seems to have some random alogirthms, it seems to take into account all area sales and not necessarily ones similar to your own house. You should probably average it with the value shown on sites like redfin, realtor to get a better idea of current home value :)

  3. I'm excited for you guys. I'm sure you'll have it paid off before 10years. Thanks for posting and I wish you the best of luck!

  4. nice work, you will easily pay it off within 10 yrs. You say your investing instead of putting it to the mortgage (smart move) when your close to that 10 yr goal just put the money to the principle to hit that goal! nice work