Thursday, June 23, 2016

Mortgage Balance (UPDATE) - JUNE 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: $794,650 (up $7,300 in the last 30-days).  I really don't understand how Zillow comes up with their 30-day gains because based on our calculations (with numbers from our post in MAY), we actually saw our home value grow a whooping $21,283! (from $773,367).  

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 June 1st):
$304,335 (down $1,867 from our last post)

Percentage Owed:
38.3% (down from 1.2% from our last post)

Home Equity:
$490,315 (up $23,150 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 0 months (132 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  -10 months (142 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,

    Thank you for the update. I typically make an extra payment at the quarter ends, and am seriously debating on not making that payment, it's killing me! Congrats on the recent equity unrealized gain, hope it keeps going up for you!


    1. Thanks Lanny. With the market doing well again, and it has been harder to find great stock buys, I've considered making an extra payment or at least extra towards the principal. But it is hard because our interest rate is so low. :) AFFJ

  2. Way to go AFFJ! That is a hugely awesome amount of equity in there. I'm assuming you live in a high priced market like NY or CA?

    1. You guessed it buddy. We live in CA. Although we don't live in SF, Silicone Valley, Beverly Hills, etc. Prices where we are are quite high. The last I checked, our home value just went above $800K!

      Thanks for visiting. AFFJ

    2. Ha, I guess I could have read your blog's subtitle! Just saw that. Doh! :) Ps - added you to my blogroll: