Friday, June 23, 2017

Mortgage Balance (UPDATE) - JUNE 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 $835,446 (up $6,078 in the last 30-days). Is the housing market seeing a cool down, or is there still a second push as those looking to buy a home before the next school year start going into escrow? Regardless, since we have no intention of selling our home, the fluctuations in the market means little to us.  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 June 1st):
$281,587 (down $1,921 from our post last month)

Percentage Owed:
33.7% (down .55% from our post last month)

Home Equity:
$553,859 (up $9,788 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 0 months (120 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 10 months (130 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 -

    Looking forward to you breaking the $280K balance remaining next month!


    1. Thanks Lanny. So are we...can't wait to dip below 250K, then 200K, then 100K 😊. AFFJ

  2. This is my first time posting on this blog. That's an impressive account of your mortgage balance update. I bought my first home last year, so I don't really have any equity in it. But, with the huge equity you have in your residence, that's certainly a nice safety cushion that gives you very good options should you decide to use it.

    Great report and looking forward to more awesome updates.

    1. Congrats on your home purchase. Be patient, I'm sure you will build equity slowly but surely. Glad you found our blog and hope you continue to follow along on our journey.

      Best wishes. AFFJ

  3. we will start having mortgage starting from next year,so it down for last 30 days or up, zillow says up and you say down

    1. When you buy next year, make sure you keep your mortgage payment as low as possible. I know the recommendation is to stay below 33% of your family's annual income but I personally think 25% provides you with much more flexibility and freedom to invest or otherwise cushion any unforeseen expenses.

      And thanks for pointing out the typo in my post. I've since corrected the error. ;)

      Regards, AFFJ