Wednesday, September 2, 2009

A bit depressing

My first mortgage payment went through.  Out of the money I shelled out, only 13% went towards the principal.  Weak.  A good fraction goes towards escrow to pay next year's tax bill and for primary mortgage insurance because I didn't put 20% down.

I'm paying about $1k/month more than I would if I were renting.  That doesn't really sound like a good deal from a financial perspective, but I like the feeling of home ownership.  The psychological boost is worth more than than the money lost.

2 comments:

the fried green tomato said...

Is it required to put money toward next year's tax? I don't think so in CA, but NY has all sorts of strange rules.

Jeremy said...

I have to pre-pay school taxes, pay for primary mortgage insurance and some other odds and ends.