Friday, September 20, 2013

Mortgage Update: 1 Year In

We have now had our mortgage for one year. Our original mortgage was for $212,000 at 3.375% with a monthly payment of $937.24. That is our entire payment as we do not escrow. I prefer to pay our taxes and insurance myself.

We pay $950 per month. After 1 year, our mortgage balance is $207,688.72. We have paid down $4311.28. It's not the greatest paydown but I have not paid any extra and I'm very reluctant to do so. I think that our money could work for us in retirement or other investment accounts better. I will continue to pay $950 or $1000 per month but no more.

Do you pay extra on your mortgage?


  1. The technical answer is yes....but it is $3.36 per month just to round it up. Not really doing anything, but I suppose it all counts!

  2. I was paying extra for awhile and plan to do so again once I get caught up on some other bills. But I usually only pay about $50 extra a month. I like to know I'm saving money on interest but I have other priorities for our money so I don't put too much extra towards it.

  3. You and I have roughly the same size mortgages :) I've only paid off about $4K of my principle in the past year as well, and currently still sitting at $202K. I believe I can make my money grow if I invest it elsewhere and don't mind paying a little more in interest in the mean time because it's not mortgage rates are 10%. It's easier to reach financial freedom by building wealth than trying to be debt free.

  4. Have you looked at your amortization schedule to see how much of that was interest and how much was the principal?