Thursday, June 11, 2009

Mortage Decision

I believe D and I have finally come to an agreement with the whole his mortgage vs. my mortgage payment issue.

For those who have just joined in, a little background. When D and I got together, we both had assets. Our current real estate holdings are split 50:50 and I have already paid for my half. The existing mortgage (8 yr 8 month amortization) is technically D's responsibility. He doesn't want me to interfere in what he believes is his responsibility even though my joining in would mean a quicker end date.

What I've been doing is creating our retirement and multilevel emergency savings. So on paper, our net worth is going up because of savings vs. mortgage repayment. Because right now, we are enjoying a ridiculously low rate of 1.35% (home) and 1.50% (ski condo), going for a larger gain in conservative investments is making sense.

So here's the new deal. When the smaller mortgage comes up for renewal in 4 years (1.50%), we are not going to renew because the amount left will be around $24000. It will be paid off using my line of credit whereby I will be the one responsible for finishing it off. I may choose to cash in some of our investments I'm buying right now or I may just pay it off using income.

What that will mean is that D can use all of his income to handle the remainder of the mortgage and we will end up well under the total 8 yr 8 month mark.

Meanwhile, any monies left over after maxing out our yearly savings plan goes into prepayment of the smaller mortgage so that I will end up with less to deal with in 4 years. I just put in about $350 last night. Knowing me, I will do my best to pay off the small mortgage before it comes up for renewal.


  1. excellent, sounds like apln and everyone is happy

  2. Hi Lizzie;

    It seems to strike a good balance so I hope we can maintain it for a few years!