Sunday, January 31, 2010
2009 Home Expense
2009 was our first year as homeowners. This was probably our biggest expenses. We spent almost $22k for the downpayment and $30k for the renovations on the house completed in January. I didn't include that in the budget because those were one time costs and were more like investments rather than monthly expenses.
Our mortgage and rent category came out to be about $1670. Of that $1670, $100 was paid to PMI, about $260 in early principal repayment, $300 in insurance and taxes, $800 in interest, and $200 in principal payment. We need to have 20% of principal in order to be rid of PMI, so that's why the early principal payments. We've paid down 15% so far, so another 5% (almost $10k) to go...
HOA dues were raised to $55 a month for 2010, so can't really do anything about that.
Like I said in the previous post. Housing prices have stabilized. There are less foreclosures and short sales pulling the market down. The benefits of lower housing prices are lower taxes, but since our family is still growing, we have to look down the road to upgrade, so we'll keep our eyes open to that possibility.
But in anycase we have $7500 to repay for the first time homebuyer loan program, we still have a little bit of repairs that wasn't 100% complete during the renovations, and we plan on staying here for at least two years due to tax implications. We'll see what happens then, as for now, we'll try to be faithful to our budget and giving goals.
What can a budget do for you?