Search

Sarah and Holly

Kiss me hard before you go…

Tag

home ownership

House Refinance and LIFE Update

They FINALLY recorded the new loan on our house on April 28th, YAY! April was kind of a stressful month with the house refinance looming over us, plus Holly was applying for a new position at work and we were just finally paying off some of my debt from school.

But over the course of two days, we heard that the new loan recorded and Holly got the job!

With that and the fact that we’re down to one year from the wedding (okay, a year and a few days…), May is turning out to be a sort of mile-marker month for us.

Oh, speaking of mile-markers, did I mention I’M TURNING 30 NEXT WEEK?!?

Appraisal TOMORROW!

The appraiser is coming to our house tomorrow to give us a value for the house. The magical number in this man’s pocket drastically affects the costs of refinancing the house. In case you’re not familiar, any time you apply for a loan or a refinance (which is essentially, a new loan) there are a bunch of costs associated with it, things like:

  • Broker/underwriter’s fee
  • Appraisal
  • Title search
  • Credit report
  • Prepaid items (insurance, taxes, etc that are paid out of the mortgage)

Now, in our case, some of these items can be “rolled into” the loan so you don’t have to pay them out of pocket. In order to do so, however, your house has to appraise for enough to cover the amount that you owe on the loan *and* the closing costs while still leaving 5% of equity in the home.

Since mine is a relatively young mortgage, less than 10 years, and because you pay mostly interest costs on the front end of the loan, there’s not a ton of equity built up yet. So if the house appraises for less than what we’re estimating it will, it means fewer closing costs can be rolled into the loan and more has to be paid out of pocket (and vice versa). Property values still haven’t recovered from the housing market crash so we really don’t know what this number is going to be.

Secretly, I’m hoping it appraises for what I bought it for so I can feel like this whole buying a house endeavor has not been (literally) a negative investment.

fingers crossed reaction gif

All the Grown-Up Things

It’s a little pathetic, but I’m officially counting down to our one year mark (1 months & 21 days…), so I can openly start counting down without being an annoying douche-bag (13 months & 21 days).

But in the mean time…exciting things! I’ve signed the disclosures that mean we’ve officially started the process for refinancing my house!

Back Story

I bought my leetle house 8 years ago when I was 22 (please don’t do the math on that). While I am very excited and proud that I got into home ownership before I had even graduated from college (which, now that I think on it, isn’t that impressive since I didn’t finish college until I was 28, but I digress), it was not the best time to buy a house. Remember the Housing Market Bubble? When I got my mortgage, housing prices were bloated due to risky lending (thanks Fannie Mae) but, within 6 months, the sale price for houses like mine dropped about 14%. $15,000 just went *poof* over the course of a year.

Thank god I could pay my mortgage and didn’t need to sell it, still, I ended up missing the window for those historically (artificially) low interest rates and but still paying the “bubble” price for my home.

Over the next 8 years I paid off my car (yay) finished my Bachelor’s degree (double yay!) and…accrued about $28,000 in additional debt. This was my status when I met Holly. About this same time, I locked myself into a payment plan that would have this paid off in 3 years. Which was uncomfortable, but certainly do-able since I didn’t have any big ticket plans on the horizon.  Fast forward about a year and…we got engaged!

Oh, well hello, big ticket plan…

After realizing that my “pay off my debt right naw!” plan seriously hampered our ability to save extra money, we pushed the wedding date back a year. Which was hard to do, but a serious relief.

The Present

As of March 1st, we had paid off about $17,000 of my school debt!

Andy Dwyer throwing confetti in excitement

We’re on track to have another $5,000 paid off this year.

(Forgive me, I’m in a giffy mood today…)

So we decided now would be a good time to refinance the house, something I’ve been wanting to do for about 4 years now.

It’s a little scary because we do have to come up with some cash up front, but when it’s all said and done, our interest rate will drop over 2% and our house payment will go down over $200.

On one hand, I’m thinking wow we could totally just put an extra $200 toward the house every month! On the other hand…um, wedding!

So right now we’re still scrambling to get everything together to push the refinance through, hopefully by the end of April, just in time for me to start “officially” counting down for the wedding. This works out well because my crazy obsessive brain needs goals and projects to keep my body happily flooded with seratonin,

So yay for big grown-up life things!

Create a free website or blog at WordPress.com.

Up ↑

%d bloggers like this: