I updated my mortgage progress bar. Since refinancing almost a year ago, the mortgage has been paid down by a somewhat measly 4.98%. OK, so that's far better than the zero by which it was being paid down with the lousy interest only loan we had before so I will keep my outlook bright. At least the mortgage is being paid down!
I'm paying $245 a month in interest right now, which drops each month as the mortgage amortizes, and my property taxes plus homeowner insurance expenses are $259 monthly. The remainder of my payment ($400 and increasing) goes to principal. Not bad. At one time, I had a real problem making the annual property tax payment and, as a result, our property always ran a deficit. It's a wonder to me that the city allowed us to go from year to year without paying the taxes but ..... that's what happened. When I moved out of the custom home, I owed around $25K in taxes, which the bank had to pay to the county before they could sell our foreclosed house. I'm ashamed of this fact and I write about it here so that I can feel the shame, resolve to never make the same mistake again, and force myself to move on. I can tell you, I used to hate receiving that annual bill, red lined with the terrorizing word "DELINQUENT' all over it, because I knew I was going to lose my house eventually.
Anyway, water under the bridge. Today, our property taxes are current and have not been late in 5 years. In retirement, this mortgage payment will still be affordable even though the spouse wants the house to be paid off. We will have to see what can be done about that next year. We continue to save and we are going to have to make a decision at retirement: Does it make sense to take money out of stocks and pay off the house OR should we leave the money in stocks to (hopefully) build a better balance and just make a mortgage payment each month? We have 14 years to go on our mortgage if we stick to the loan repayment schedule.
Another bout of car repairs
2 hours ago