Sunday, November 26, 2017

Mortgage Balance (UPDATE) - NOV 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 $841,084 (down $383 in the last 30-days). Up or down, it really doesn't mean much to us since we have no intention of selling our home.  We mainly post these updates to see the remaining mortgage balance and keep us motivated to push forward to be debt free (including our mortgage) one day!

Mortgage Balance (As of Nov 1st):
$271,874 (down $9,713 from our June post)

Percentage Owed:
32.3% (down 1.4% from our June post)

Home Equity:
$569,210 (up $15,351 from our June)
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 9 years and 7 months (115 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 10  years and 5 months (125 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 -

    Massive decline in your mortgage since June, so fricken awesome. Excited for you to break the $250K mark remaining on it!! Congrats.


  2. Congrats on the progress AFFJ. Love seeing the debt balance decrease. Not having debt is going to be so nice, especially when you hit early retirement.


  3. AFFJ - Great progress on that mortgage balance since the last update.