Wednesday, June 4, 2014

Mortgage Balance (Update) - June 2014

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. 

Home Value:
According to Zillow, our home is currently worth: $768,380 (up from $746,101 in May)

Mortgage Balance (June 2014): $347,098.15

Percentage Owed: 45.17% (down from 46.7% in May)

Home Equity: $421,281.85 (up from $397,319.19 in May)

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. 

Although we don't consider home equity as part of our net worth, it still is nice to see our home equity grow.  This last month was an great month in that regard with our home equity growing approximately $23,962. As for percentage owed, the number continues to decrease ever so slightly. The percentage dropped 1.53% this past month.  With our mortgage balance, I'll certainly accept that as a decent month. :)

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