Friday, February 19, 2010

Mortgage Summary 2009

We received our annual mortgage statement from the bank yesterday. It summarizes what happened to the mortgage for the entire 2009 year -- where we started from, how it ended, any interest changes and how much interest was paid.

It is useful from a big picture point of view and also for people who are eligible to write off mortgage interest if they run a home office.

As I track our mortgages like a hawk, I already knew where we started and ended so that wasn't new news. What was however, was the amount of interest we paid -- how much the bank made from us by lending us money to buy our homes.

It was shocking to see our main house costing $2043.47 and the ski condo costing $721.61 for the year. I don't believe those numbers are bad at all considering the amount we are borrowing.

The falling interest rates, a hallmark of 2009 helped to keep more of our money away from the banks.


  1. The mortgage summary wasn't a surprise to me either but it got me thinking... We moved into our current house in Dec. 2008 and have a 15 yr fixed rate. We calculated that if we pay double what we have been paying, we'd be mortgage free by the end of 2015. After we set it up with the bank, I began day dreaming about how it'll feel when I'm 36 and mortgage free...

  2. I too am counting down the days until I am mortgage free. I decided a couple years ago that the maximum lump sum payment I can put on every year would be my priority so in 2012 I'll be having my mortgage burning party...I dream about that everyday.

  3. Hi Sandra;

    I didn't know you can even get a 15yr fixed rate. Are you in Canada?

    Knowing what I do now, if you do get your mortgage paid off by 2015 and are happy staying there for a long time, you will have a huge chance of being able to build a lot of wealth by the time you retire.

    There are many days when I wonder whether owning multiple properties is worth it because I am coming to the end of my patience for paying for mortgages. We are hoping to be done in 2012/2013. It can't come soon enough for me and I'm sure the feeling is going to be great!

    Hi Sue!

    When you are done, then all that money you won't have to put towards that lump sum can go towards doing races in cool places!

    I cannot be more excited for you! 2012 is just around the corner!

  4. Actually I live in the states (New Jersey to be exact). I just found your blog yesterday and found it to be very interesting and less extreme than many other bloggers. I am somewhat frugal but not extremely so. I like your middle way.

    Having moved 5 times in the last 8 years, I am tired of moving. My husband and I have 2 small children and I'd like them to grow up in this one town we're currently in now. So yes, we're planning on staying here for a very long time.

    Building wealth & being financially secure has always been important to me. I was fortunate enough to come across The Millionaire Next Door while I was in college and chose a lifestyle what is under our means. The decision to pay off the mortgage sooner means that we’ve decreased our savings from 40% to 33% of gross income…

  5. I really like the way you classify the interest as what is 'cost' you to have those homes. I am going to go have another look at my mortgage summary. I was so blown away at how little we dented it that I didn't look much more at it.

    I did however figure out that we could potentially have our mortgage paid off in 7-8 years. We are saving a certain amount every month for a renovation that we are starting soon and I figured that if we can save for a reno, then we can also put that amount towards the mortgage once the reno is paid for, allowing us to pay off our mortgage super early.

    I agree with the above commenter about liking your 'middle way'. Some financial bloggers seem to suck the marrow out of life by just going too far.

  6. Hi Sandra;

    Thank you for your comment!

    If you can still save 33% after paying extra for the mortgage and raising 2 kids, you are doing amazing!

    As you know, in the book, a big part of building wealth has to do with having a frugal wife whose habits help the family stay on course even when income increases!

    Hi Julie;

    7 - 8 year finish for your mortgage is amazing!

    Thank you for your comment. I really like your description of "sucking the marrow out of life"! I cannot bring myself to cut things so much just to prove a point that it can be done. I don't doubt it but it isn't for us.

    Our thoughts regarding extra mortgage payments evolved similar to yours -- when we realized we were able to save for/pay off other things, it just made sense to apply the same principle to debt.