Tag Archives: home ownership

How Much is Home Ownership Costing Us?

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Depending on your circumstances, home ownership can be a great deal or it can be a money pit. I wanted to give some of the expenses we’re experiencing with having a mortgage; hopefully it’ll be helpful for those on the fence about buying property.

Housing Expenses

Right now here’s what we have to pay each month to own the house.

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Run the numbers before buying a house!
  • Mortgage: $660
  • Escrow: $180*
  • HOA: $110**
  • Pool Dues: $20

Total: $970

*Our escrow account takes care of home insurance, private mortgage insurance, and property taxes.

**Our home association dues include landscaping and our water & sewer bill.

In addition to our mortgage payments, we send in an additional $175/month to pay down the mortgage balance faster. Our utilities (electric/gas) average around $100/month in the summer.

Why Pay Off Our Mortgage Early?

I mentioned before that keeping a mortgage just for the interest deduction is crazy. You’re just sending over more money to your mortgage company instead of paying a fraction of the amount in taxes. The numbers don’t add up. By paying our mortgage earlier than the 30 years scheduled, we’re going to save tens of thousands of dollars in interest.

Following the mortgage amoritization schedule, most of the money goes towards paying interest in the beginning of your loan. As the mortgages draw to a close, the payments increasingly goes towards the principle owed.

Paying down the mortgage quickly is also about own own peace of mind. We also don’t want to limit our cash flow for the full 30 years by carrying our mortgage the full length.

Thoughts on Home Ownership

for those that own a house, what are your monthly expenses? Are you paying extra on your mortgage ? Why or why not? How do you arrange it- do you add it on to your regular mortgage bill or do you send it in separate? For those who’ve done the calculations, how much money and time will you save on your plan?

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