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?

4 comments:

  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!

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  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.

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  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.

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

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