Another $1,200 contribution to the principle of my mortgage for a total of $32,099. 1 year 10 months to go. It is great to have this break from thinking about my nephew's school progress, but, with the extra room in my brain, I have started thinking about how I can speed up my plan. Nothing has worked out so far. When I have to consider another person in my plans, it is best to just continue as I am doing.
Here are some of the things I thought:
Get a cash-out refinance because my current interest rate is 4.5% and the 15 year interest rate is 2.8%. Take out $20K, fix up the kitchen and master bath in my house and be ready to sell (or rent it out) as soon as he leaves for college next year.
Or, the super-fast forward version: Take out $50K, pay back my mother for the barn-shed, fix up the house to sell, finish off the barn-shed interior. Everything finished by the time he goes to college.
But, from what I read, cash-out refinances are not a good choice because of the high closing costs. Home equity lines of credit are a better choice because there are no closing costs.
Ok, so a home equity line of credit would work for the kitchen and bath remodel. But then I went out to the property to get the mail and check on the cat food/water. In the mail was a big packet for BACK TO SCHOOL. Medical forms, open house, meetings, deadlines, fundraisers, senior, choir and youth group activities, yearbooks, cap and gowns, HOMEWORK! My brain suddenly froze up and those lofty ideas of doing remodeling while having a full time job and parenting a senior in high school flew away. I should stick to my plan of paying off my mortgage and downsizing until he is 18 years old and securely planted in college. One more year and then I can revisit my options for accelerating semi-retirement. We can do this!