Sunday, November 27, 2016

Mortgage Balance (UPDATE) - NOV 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: $831,679 (down $4,043 in the last 30-days). Real estate typically cools down (literally) in the winter months so we expect the decline to carry forward into the next few months. And with the high likelihood of a rate increases in the near future, we expect our home to decline even further.  But from a property tax standpoint, and since we have no intentions of moving, we welcome the declines in value. :)

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 November 1st):
$294,936 (down $1,889 from our post last month)

Percentage Owed:
35.4% (down 0.1% from our post last month)

Home Equity:
$536,743 (down $2,146 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 7 months (127 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 5 months (137 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. I like to apply a small extra amount towards my mortgage ever month. That way, the day I decide to tackle the mortgage debt, it will be easier. And it is small enough to not be a strain, so I can achieve my other goals.

    1. A small amount towards your principal each month is not a bad idea. With the market on the rise, and DOW nearing 20K, I'm finding more stocks I want to sell than buy. As it get harder to find deals, we too may also throw a little more at the mortgage.

      Appreciate the comment. Take care and best wishes. AFFJ

  2. This comment has been removed by a blog administrator.