Wednesday, 13 November 2013

Mortgage - The First Year

As I passed the one year mark to owning my own home I got to throw another 10% of my mortgage amount onto my mortgage and can now happily report that I own 43% of my house. (If you're interested it includes my front sitting room, my den, a bathroom and pretty much all of the kitchen/dining room area.) Left to pay off is the second bathroom, all three bedrooms, the family room and the utility room.

Amount of House Owned
Goal:  $191,000 by Nov. 8 2017
Current:  $82,078.92

As you can see from the above graphics I currently have $82,078.92 worth of principle in my $191,000 house. Other interesting facts:

-I started with a 360 month (30 year) amortization period. I now have 195 months (16.25 year) left if I were to stick to the normal payment schedule (ya right).

-The line of credit on my house now has $43,878.92 on it (equity built in the house minus the 20% down payment). Not that I'm planning on using it, but it is fun to watch it grow.

-This should drop my monthly interest from over $300 a month to around $280 which means even more of my payment is going to principle.

-I am bang on my schedule of having the house paid off in 5 years (which is my term, after which interest rates may change)

-According to my calculations and my general understanding of my bank's "mortgage payment vacation" rules I could not make another payment for the next 12.75 years and though I would loose all most all of the gains I have made in paying off my house they wouldn't foreclose

Paying off my house is going to get a bit trickier over the next year and a half as my pay will be decreasing as I take time to do my Masters (which is another big cost). That said it's been good so far and I'll be doing my best to keep the momentum going.


  1. With a mortgage you own your whole house. You simple have put it up for collateral against a loan.

    1. Technically yes. But the idea that the bank still owns a portion of my home keeps me motivated (even if it's not legally accurate.) It also means that I can paint a black line down the long side of my house and keep track of mortgage payments as a % of my home.