Deciding to decide - maybe
OK, we started to get together on just what it is we are looking for, and SURPRISE, we really did have almost exactly the same ideas, we just weren’t quite explaining them right. On the other hand, if I cannot explain myself to a woman I’ve known for 25 years, how much success am I going to have explaining it to a man I’ve never met?
Ironically, we received no less than THREE “refinance your home now!” junk mails yesterday alone! These people are fighting amongst themselves to give us credit (the fools!), and yet one of the letters we received started off with the message “Even though you’ve been turned down by other creditors for one reason or another, we’ll work hard to get you the money you need”. Really on the ball, aren’t they? Oh well, that’s one reason we have a shredder.
At this point I’m torn between do we want to refinance and be able to deduct the interest on the new loan – or is it better to do a home equity line of credit so that I don’t end up with too much or too little refinanced? Another benefit of the home equity line of credit is use of emergencies (medical bills, dental bills, auto/home repairs, etc). I am open to opinions <<< hint>>>.
I think we are going to take a section of our addition and put in an exercise room. Nothing fancy or elaborate, just enough to hold an elliptical and maybe a Bowflex; a place to put the weights I’ve had for years and never had the room to use. The benefit is that it could be considered another bedroom (Maybe) – bringing us to a total of four. Also I would no longer have to spend $50 each month on gym membership – which monthly fee then can go into loan payments. Additionally, it has often happened that I have wanted to get some exercise but haven’t been able just due to the fact that getting to the gym, changing, and getting home again takes too much time. I’ve had enough time to work out, but not enough to get there and back as well.
Tonight, we’re sitting down with a crude drawing I’ve done, and we’ll cut and paste our way into something looking like a plan. Then Saturday we’ll see how much of that plan we can afford.
Of course, we may just forget the whole thing.
On the other hand, we’re exited.
On the other hand, let’s not do it at all.
On the other hand, let’s ONLY remodel the kitchen.
On the other hand …..
posted by methatiam | 9:02 AM
3 Comments:
You sound excited. Enjoy the ride.
I second anvilcloud. As to hints, suggestions, etc, I have no clue. However, having another bedroom does sound like a major plus for when you sell eventually. The trend is to buy bigger houses. Two bedrooms are becoming more and more rare and four is better than three, in terms of real-estate. So. There's my two cents.
Thats a tricky financial question. I think the rules are different in the US, but home equity lines of credit rates aren't overly cheap anymore (not like a few years ago anyways). If the line of credit has a higher interest rate (and fluctuates with the prime interest rate), then at the end of your term, if you were making the minimum payments, you might still owe alot. Whereas if you refinance with a fixed rate, it might be easier to budget for the long term. In any case, paying interest just plain and simply sucks!
Good luck with that decision.
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