Wednesday, February 24, 2016
Mortgage Update for February 2016
My rental house is paid off and rented at the moment.
My mobile home is where we live during the week on school days when my nephew needs to catch the school bus. The mobile home and the weekend house are in 2 different school districts, the mobile home being in the far better school district which is why we go through this trouble.
So, back to the mortgage. If I keep paying an extra $1,200 a month, I will have the house paid off in 2 years and 2 months. Seems like it never gets closer but I know it is...slowly. The new total is $37,839.
I got a letter from the bank today advertising their home equity lines of credit. Hmm...I would like a new kitchen...but no. If I do any improvements, I want them to be done right before I put the house on the market so that nothing can break or get ruined. My kitchen works fine, well, except for the garbage disposal and the dishwasher which can't work now since the garbage disposal is dead. But I don't use either of those anyway.
Today I am alone at home and it is a nice break. My nephew is off to a school Disneyland trip and won't be back until Saturday night so I can do whatever I like and I don't have to think about homework or dinner or computer time limits or getting to school on time. Ahhh... I like it.
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Yay for a break for you. Nice recap of the homes, that was helpful.
thanks for clarifying.
also, have you decided to sell when the house is paid off or rent out for income?
i thought you were going to think some more about the possibilities, since the market will continue to go up for some time.
aha, i've got it all straight now!
I was thinking second house was also going to be a rental after school, so you had sufficient income to 'retire' at that point
It does get confusing, doesn't it? And it doesn't help that I change my plans every few months. :)
I'm still open to the possibility of renting it instead of selling but this week I am 90℅ sure that I would rather sell. I have at least another year and a half to decide.
If I could sell it today I probably would. The strain of maintaining multiple properties is getting old. I have the simplify bug today. I want to chuck it all (for money, of course). I may feel differently when the time comes.
I think Mr. Money Moustache did a post on his rental and comparing what the return would have been if he had sold and invested in Vanguard. Might be an interesting read for you. Definitely easier to sell and invest, not totally sure about the returns though.
Smart to hold off on any renovations. Why put yourself further from having the house completely paid off?
Oh, I read him too! Rentals are great when they are rented and have no problems. I've had to dump $3k in to the house every 2 years or so. I don't like those kind of surprises although I know I'm suppose to have a maintenance fund. I might consider buying a smaller house from the house sale. Maybe it would be easier to maintain a smaller rental.
My un-scientific research on my local housing market tells me that I could put $15k in to my house and get it back from the home value when I sell. So, sometimes I feel like taking a home equity loan for 15k, fixing up the kitchen and yard, then selling it and investing the cash. It's not really practical to do that until after my nephew leaves for college so I will just plan and scheme and try to be patient.
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