Monday, June 14, 2010

Money Monday - Big Bucks

Well, house number one is SOLD!

The overwhelming thing about buying and selling houses is the amount of MONEY that changes hands. After last week, I feel like managing our budget is on the same scale as managing the money in Hannah's piggy bank.

It's so stressful worrying about making a mistake with hundreds of thousands of dollars!

The relief I felt when we walked away from that house was staggering. While I will miss our first house, and bawled like a baby the night before closing - it's a debt that isn't haunting me anymore - and we're no longer trying to maintain two houses.

There were a couple of glitches, but ultimately everything went VERY smoothly. Unbelievable. Two days before we closed we learned we needed to paint or tear down our shed before we could sell the house (the buyers ended up painting it) and after we closed, we found out the buyers didn't want to appraise the house for what we sold it for which would have left us out $4000. Luckily our agent knew the appraiser and convinced her that our lot size and the fact that he just sold a comp in our area for more made the house worth the money. Whew!

Now I'm just hoping we don't owe any recapture tax (which NO ONE SEEMS TO KNOW ANYTHING ABOUT) and we'll be golden.

Now we just need to close on the house we're living in now and life will be grand.

Since we're talking about money and this is my blog - I'd like to give my opinion on mortgage loans. Since we're Dave Ramsey fans we're desperately working hard to be able to get a 15 year mortgage with 20% down at 4.5%. It's has certainly not been easy, but if all continues to go well - it looks like we'll be able to do that and still have most of our emergency fund in place. I pray we're able to do this - but am nervous, understandably.

Let me leave you with some interesting stats on why this is a better deal.

Aside from getting a lower interest rate on a 15 year vs. a 30 year mortgage AND paying your home off in HALF the time, take a look at the interest savings in this hypothetical scenario:

$150,000 mortgage
30 year loan - 6.75% - you will pay $200,243 JUST in interest
15 year loan 6.5% - you will pay $85,199 in interest (a savings of $115,055! That's certainly nothing to blow off!)

1 comment:

  1. Also, 100% of the people who have a 15 year mortgage pay it off it 15 years. I know a lot of people would say, get a 30 year mortgage and pay it off like a 15 year. But, no one actually follows through with the payments.

    ReplyDelete

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