Land Mortgage
I’ve been wanting to add a land mortgage update section for awhile, but just haven’t gotten around to doing it. I really like that Move to Portugal and grumpy rumblings of the untenured have monthly mortgage updates.
The bad thing about the land mortgage is that it is not the same as a house mortgage. We are stuck at a rate over 7% that we received when we bought the land in September, 2008. It has been a difficult thing to watch home mortgage rates drop to about half of our rate, and not be able to refinance the land. Not many banks or mortgage companies will finance land that has nothing on it. Unfortunately for us, the land mortgage rates are not tied to the housing market. I feel like we are spending way too much on our interest every month. But hopefully soon, we’ll have a construction loan and with an actual house we can hopefully get a nice low fixed rate.
Our actual payment is not a round number, and I really like to pay a simple number. We pay $750 every month which is about $22ish over our actual payment amount.
Give me some time to get these updates the way I want them!
July 1 payment $750 Prior Month Balance: $99,759.26 Principal: $247.40 Interest: $502.60 Current Month Balance: $99,511.86When we get a construction loan, this will be the first thing that gets rolled into the construction loan. We paid 20% equity when we purchased the land, and slowly we will make a dent in this loan.
Urgh to your land mortgage rate Sandy, but at least you’re making progress on reducing the balance…below 6 figures is good…it’s what I’m aiming for.
It must be so exciting having land and knowing that eventually you’ll have a house on it.
Thanks for the link!
Laura- Thanks for dropping by.
It is really exciting knowing we have the land part (sort of) taken care of. And hopefully we’ll be building come Spring, 2012. At least we hope to have the money in the account so we can get a lower interest rate on it- need that House to be built to lower that interest rate! Yuck!!