June 2020

Last month was an interesting month for us.

After toying with the idea of selling our current home and moving to new place, we finally decided on staying put. Frankly, “toying” doesn’t do justice to how involved we were 🙂 We put in offers for 3 different places – 2 of which were outbid by other buyers; the third one we cancelled after the inspection.

Instead, we refinanced into a 15-year mortgage. Locked and closed at 2.625%.

Our monthly payments remain almost exactly same but we will be paying down principal way faster. For May, $620 went towards principal reduction from the monthly payment. For the new mortgage, from the first payment, which isn’t due till August, $800 will be applied to the principal. With this new mortgage, we decoupled the taxes from the mortgage payments – eliminated escrow – and will pay our property taxes directly to the county going forward.

You will notice that our mortgage liability hasn’t gone down from last month. Because we haven’t made any payments.

Also, astute readers might notice that our cash balance has decreased by almost ten grand. Well, this was an anticipated “expenses”.

When M left the corporate job last January, we knew we had to return a part of the sign-on bonus received when M started on that job. There was option to pay back the amount in 6 monthly installments or lump sum. We decided to pay out lump sum at the end of 6 months, and collect interest on the saved up amount held in a high yield saving account. That’s $12,698.13 gone.

We received $900 from our closing. This is was from the estimate they had based on the new mortgage loan amount and closing costs, and the costs came in lower. We are also slated to received a sizeable amount from the closed mortgage loan, but that hasn’t yet hit our accounts.

Other than that, the usual. Summer is in full swing. We made our first two road trips of this summer in June. There’s another one planned for August though we might take one in July.

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