5 minutes to read

My Mortgage Payments Piss Me Off!

Every month, after verifying that my bills were paid, I open up my mortgage account status to look at the pitiful amount that was paid towards principal from a total monthly amount of $1556. This past month, $273.36 went towards principal and the month before, $271.89.

This is pretty shitty as compared to the interests paid in the last two months, which were a whopping $953, and $952, respectively. WHAT-THE-HELL!

I’ve gotten pissed almost every month since late 2007 after I really realized how my initial mortgage amount of $193,000 never seemed to drift below $190,000, after almost a year of paying on it. Curse high-interest, extremely priced, 30 year mortgages!

When I was living in the home though, I didn’t care as much. My attitude was, (**shrugs**) “hell, I have to pay to live somewhere, so what since does is it to make extra mortgage payments.” Now, though, since the down market and a job transfer forced my home into a rental, it pisses me off that I’m pretty much losing money every month. I receive $1100 monthly to cover a mortgage payment of $1556.

Some of my friends tell me that it’s not so bad. But, I don’t care much for people who tries to make me feel better by telling me that my tax deduction is a great justification for my financial rape. All I see is me paying for a home that I no longer reside in, and that has also managed to lose about $50,000 in value since I purchased it.

My First Attempt to Attack

In 2010, I got so pissed that I started making extra monthly principal payments of $1100. I paid about $9,500 that year. By the end of 2010, my principal owed was “only” around $176,000. Imagine that.

It’s now four years later, and after paying in total, including taxes and insurance, roughly $1550 monthly, for a total of almost $75,000, I’ve only paid down $17,000! What was I thinking to have not paid more towards principal from the beginning?

My First Attempt Thwarted

Well, I would have kept my extra principal payments up this year, but in the beginning of 2011, my ex-wife and I divorced. Any extra money that I would have put on the house this year went to the ex-wife for Alimony payments, to  myself to get back in the dating game, a nice, much needed all-inclusive Cancun vacation, and finally to my newest home that I purchased this month.

Regardless, all the while my mortgage principal remained almost at a stagnant $176,000.

Silly, dumb, divorced guy. The jokes on me, huh?

I have got to find a way to fight back. At this point, not even selling my house is an option since the going values in the neighborhood are $150,000. I refuse to “give” almost $30,000 away to sell the house. And I’m too concerned about my finances to just “walk-away.”

So for now, I guess I’ll just remained pissed…EVERY MONTH…until I come up with a better game plan.

These $1500 monthly Alimony payments has got to stop!

Readers: Are you having a similar dilemma? Did you use a game plan to get out of one of your homes? Has a short-sell hurt or helped you?

Comments

  1. What is the basis for your having to pay alimony? You have custody of your son. Can you ask the judge to modify your situation?

  2. The basis? Umm. I guess the 9 years that we were married. Alimony sucks, but it was really a pretty good deal on the grand scheme of things. The payments actually ends in December 2011. So I have only $3000 to go. Afterward, it’s really going to be “wealth preventing” time!

    On another note, I still care and will always care about her welfare. The Alimony was the least we could agree to.

  3. Hey Romeo – Was at Fincon11 but never got a chance to say hello, so I figured i’d drop by your site.
    You dont state it in the post, but kind of allude to the value going down and your home not being worth what the loan is. If that’s not the case, i’d suggest you refi – though I’d assume it is, being a savvy financial guy and all.
    Can you finish a basement or something like that and turn it into a basement apartment or another room?

    • Hey, Jeff. Thanks for stopping by. Yeah, I guess the post was a little too abstract. It wasn’t intentional by any means. I don’t know about the value per se’, because I haven’t paid for an official appraisal. But, I do know that other one story 3 BR 2 Bath Duplexes in the neighborhood are going for $150,000. I saw a foreclosure going for $129,000. There is no room for a basement. In fact, I think I’ll just substitute the current blog’s picture with a picture of my rental property so you can see the layout.

  4. You write with so much emotion in this post! At least you got a much better deal with the house you live in now. Live and learn right? 🙂

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