As we speak, I am coordinating the installation of improving the closet storage space in my master bedroom. Hello home ownership! I’m so excited for this improvement as I’m utilizing very little of the existing closet space, which has been frustrating me lately. You’ll see the cost of that update in the December/January net worth updates and the 2 Year home ownership check-in.
If I sold my condo today for the exact same amount I bought it for 1.5 years ago, I would have spent about $13,301.33 more than I would have renting over the same time period. If the market has truly gone up by as much as it looks like it has by the sale prices around me, buying would be cheaper than renting today by $32,808.67. Buying should be cheaper than renting at my purchase price by the end of 2014.
The mortgage balance at the end of December sat at $187,552.40. It was at $229,752.70 at the end of June, so I have paid down $42,200.30 in the last six months, for a total of $98,447.60 in the 18 months that I have owned my condo, while still maxing out my 401(k), Health Savings Account, Roth IRA, maintaining my $20,000 emergency fund, and occasionally adding to my taxable investments. I now have 47.5% in equity and have paid off 34.4% of the original mortgage balance. The mortgage is currently projected to be paid off by June 1st, 2016 with no intervention from my savings account.
Now let’s compare the charts to where the mortgage was six months ago!
With my December 1st payment, I paid barely over $400 in interest and will pay about $390 with the January 1st payment. I paid $480 in interest with my June 1st payment.
I’ve paid so much of the mortgage down that I’m now tracking towards a 3.5 year payoff rather than the original 5 year plan. I’m about $26,000 ahead of the 5 year payoff target for the end of 2013, and about $7,000 behind the 3.5 year payoff target.
I’m projecting that with my next update at the end of June, the mortgage balance will be sitting at around $145,284.12 or another $42,268.28 gone!