When we bought the house, I expressed concern about that, but we were told that most people refinance before it is due. So, for the first 6 years or so, we paid our 255 a month. After six years, we still owed 32,000 so I got worried and did some checking. I realized that we’d have most of the balance left after the 15 years. Given that housing prices were going down, I was afraid that we would not be able to refinance. That was when we started adding extra from each week’s check. Now, in two years, we have paid off an additional 5 thousand. We still have 27 thousand to go, but we’ve paid off more in the last two years than we did in the first 6 years. From what I calculated, if we keep up our extra weekly payments, we should have no trouble having it paid off by 2020.
If I were not doing this, in 2020, whatever the balance was would be due. I’d have no idea whether they would perhaps give us another loan, but I’m pretty sure that if we did not have equity, they would not. It’s with Wells Fargo. Given that our house fell from 250 thousand down to 130 thousand about a year ago and now is inching slowly up (now it’s 145 thousand), I am not sure that we will have any equity by then. The total that we owe is 197 thousand.
We did halt the extra payments during the 6 weeks of one day a week furlough and will halt them until we know for sure that this government shutdown is not going to screw with our income.