Financial House of Cards

I was going to use the analogy of a burst balloon, even found a time-lapse photo of a balloon in the last millisecond of life to further illustrate my point, but that’s just not quite the right image.

 

Our plans didn’t burst in a single, spectacular explosion of hot air and little substance; rather they eroded over the course of five days.  It was more like a berm built up of solid rock and compressed earth that can only withstand the rush of water for so long before collapsing in on its self.

 

In this case it was a steady stream of financial reality.

 

By the time we allowed for the repayment of old loans (in order to afford the new loan), and the other things that we need to get first, there just wasn’t enough left to put into the house to make it worthwhile.

 

I called a couple of general contractors, and the going rate of construction is about $110.00 per square foot.  There wouldn’t have been enough to do nearly what we wanted, so it’s off the books for now.  I spent the last five days angrily trying to hold onto the dream that kept slipping through my fingers bit by bit.

 

Yesterday I went home and actively felt sorry for myself and wallowed in my own despair.  It worked pretty well, surprisingly, as today I seem to have let go of the anger and though I am still very disappointed, I am no longer behaving like a child in a grocery store who was told he can’t have the big box of chocolate.

 

On the brighter side, we are able to refinance at a full percentage lower interest rate, and get enough over to pay off these other loans.  Even with borrowing that much more, we’ll be paying the mortgage about half the amount we’re currently paying the mortgage and the other loans, so we can use that money on the house and  we’ll have enough to remodel the house if we do it slowly and don’t add on.

 

All of our changes (except possibly a patio) will be internal to the tiny little house we currently have.  I’m going to do about 99% of it myself, and farm out only what I have to.

 

The house of my dreams has become the house of my means, but I’m starting to think of it as a giant erector set.  Maybe if I get practiced on this place, I will be better at carpentry, plumbing, electric and so on for that glorious day in the far, far future when I have a real house.

 

So, although the plans have drastically changed, there is still allot of work to be done, and I’ll get some before, during, and after pictures on the off chance there there’s someone out there who might care to see them. 

 

If nothing else, it should provide you with a good laugh at the frustrating messes I can get myself into.  (Something at which I excel)