In November of 2009 where I sat down and actually calculated how much of my monthly payments were going to interest; again, I repeated this exercise on June 23, 2011. Well it has been another eight months or so, which means it is about time to figure out how much of my money is going to just servicing my debt via interest payments. Since my last update I have paid off my auto loan and while I have accelerated most amortization schedules I doubt I have yet to reach the point where I have started to see those benefits.
Calculating How Much Interest I Pay Monthly
While I share my gains in net worth, I do not share my balance sheet. However, for purposes of this exercise I am going to give some real details about my debt. My liabilities include:
|Law School Loan 1||$165|
|Law School Loan 2||$16.63|
How Does This Compare to Interest Paid in the Past?
|Liability||Interest Paid 11/09||Interest Paid 06/11||Interest Paid 02/12||Difference from 11/09||Difference from 06/11|
|Mortgage||$1,120||$1,105 (see edit below)||$1,098||$22||$7|
|Law School Loan 1||$252||$170||$165||$87||$5|
|Law School Loan 2||$32||$26||$16||$16||$10|
Wow there is something terribly wrong with my mortgage. I will have to do some research into the problem.
I am paying less interest per month however in comparing the current time to June of 2011 I think my gains have been limited by the fact that debt repayment is not my current goal.
I like to think I am in the very least trying to make the best decisions of my family financially and those decisions are focused around hoarding cash for a future down payment. Once we sell our current home and purchase another one The Wife and I will discuss an accelerated debt repayment plan and how that fits into our financial goals and objectives.
Have you ever done similar calculations?
EDIT: I looked up my actual amortization table and discovered that I paid $1,105 of interest in June of 2011. I fixed the table accordingly.