Last month (April):
Years left: 6.5
P =$887.38, I = $327.03, Escrow = 621.66
This month (May):
Years left: 6.333
P =$893.52, I = $320.89, Escrow = 613.58
One month’s prepayment savings: $2.66
Our escrow dropped. Yay. (Though boo that’s because our property value continues to drop!) Also: Note we’re below 80K!
It turns out that your housing wealth affects your college choice. A recent paper by Michael Lovenheim and Lockwood Reynolds finds that a 10K increase in housing wealth in the 4 years before a child goes to college increases the likelihood that the child attends a public flagship by 2 percent compared to less expensive public schools.
They found no relationship between housing wealth and where a student was accepted, and they suggest that the relationship comes between housing wealth and where students apply.
This effect of housing wealth on college choice was strongest for lower income families (under 75K, which isn’t actually low income, but it is generally eligible for financial aid at colleges). For this group, a 10K increase in housing increased the probability of attending a flagship by 8.3 percent and decreased the probability of going to a community college by 3.8 percent.
They also found for lower income families that an increase in housing wealth decreased the amount that students worked outside of school and increased the probability of earning a BA rather than dropping out by 1.8 percent.
They found no effect of housing wealth on families earning more than 125K/year.
Do you think increases in your housing wealth would change your decisions about where you or your children could attend school?