House Mortgage -- Countdown

[scfr]

You could use percentages, or months remaining, or some other figure. It's not always necessary to use dollar amounts.

I just remembered the guy who showed his mortgage payoff by drawing an outline of his house's floorplan on graph paper. He shaded in squares to represent the amount of his mortgage that was paid off. That was such a cool way to visualize it!

[scfr]

We have made two mortgage payments. I am debating writing what I owe here because it's insane and I'm embarrassed.

You could use percentages, or months remaining, or some other figure. It's not always necessary to use dollar amounts.

[scfr]

Looking at $100-120k for the mountain house. Refinancing our existing house would move our mortgage balance from $80k back up to $180-$200k with a house value of approximate $300k. Payment would actually go down if refinanced to another 30 year mortgage. I would still aggressively pay down to make it a maximum of a 15 year putting me at the age of 52 with two paid for houses.

First of all, in your shoes YES, I'd go ahead and buy the mountain house now. You seem like a frugal person who has a handle on their finances, so get that quality time with the kids now. Personally I'd lean towards a 20-year mortgage, and still aim to have it paid off in 15. Speaking as one who is a bit "north" of the 52 age that you mention, it is an age where things start to get a bit dicier (harder to find new work if you are laid off, health problems may start to creep in, etc.), so owning both homes outright by that age is a good plan. Also, I'm sure you've already thought of this, but I'd be looking for a smaller house that would be a good size for just the two of you to use when the kids are grown and gone.

[greenskeeper]

Looking at $100-120k for the mountain house. Refinancing our existing house would move our mortgage balance from $80k back up to $180-$200k with a house value of approximate $300k. Payment would actually go down if refinanced to another 30 year mortgage. I would still aggressively pay down to make it a maximum of a 15 year putting me at the age of 52 with two paid for houses.

[james.hendrickson]

We have made two mortgage payments. I am debating writing what I owe here because it's insane and I'm embarrassed.

Greenskeeper if the mountain house is something that you've considered a lot and weighed all pros and cons I'd do it. You aren't on here talking crazy. I would guess you've discussed with your wife your lifestyle and I'm with her. The kids aren't getting any younger.

DH and I discussed it once but decided we aren't vacation home people. We are however discussing buying a second condo in hawaii because my parents live there and my mom needs some cash flow. But it's a different reason entirely.

For you I'd look at it as a lifestyle choice. NOT a financial one. You can always fix financials.

Living, its cool to share that kind of information here - you might get some good pointers for better managing the debt if you're not feeling so hot about it.

[LivingAlmostLarge]

We have made two mortgage payments. I am debating writing what I owe here because it's insane and I'm embarrassed.

Greenskeeper if the mountain house is something that you've considered a lot and weighed all pros and cons I'd do it. You aren't on here talking crazy. I would guess you've discussed with your wife your lifestyle and I'm with her. The kids aren't getting any younger.

DH and I discussed it once but decided we aren't vacation home people. We are however discussing buying a second condo in hawaii because my parents live there and my mom needs some cash flow. But it's a different reason entirely.

For you I'd look at it as a lifestyle choice. NOT a financial one. You can always fix financials.

[Randomsaver]

So it begins.

Mortgage Principal : $69K

Mortgage Principal : $68K

[greenskeeper]

The mountain house is being purchased one way or another.

The cash-out refiance on our existing home would just expedite the process so we can gain 5 more years of enjoyment before the kids become adults.

I would most likely refinance to a 20 or 30 and pay it down as a 10 year.

[Gailete]

Additional payment for August $1500

newest dilemma -

at our current pace of additional payments we have less than 5 years remaining until the house is paid off, then the plan was to buy a vacation house in the mountains.

The wife has stated repeatedly that the kids aren't getting any younger (8 and 5) so the newest thought is to cash out refinance the existing mortgage and purchase a vacation house.

This would effectively "buy" us 5 additional years with the kids enjoying the mountains before they become adults.

Are you already spending time in the same mountain location? What is the long term game plan for taking vacations while with the kids and when they leave home? How many days a year do you plan on spending there? I would think unless the long term plan to move there for retirement, it seems like it would be so much cheaper to rent a nice place for your vacations, so that you can have a nice time but not nearly the hassle to deal with to owning a place that you have to be financially responsible for 365 days a year. By renting each year, you have the option of going to other places when someone decides in the family decides they want to go to the beach instead.

[snafu]

Greenskeeper, how many summer/vacation weeks do you plan to spend in the proposed mountain vacation home? How many other weeks disbursed through the rest of the year?

What is your personal experience in spending 8-12 consecutive weeks in a cabin in the mountains/woods? What if some/any family individuals hate it?

How much will it cost in fees and added re-set interest to refinance mortgage on current home?

How much do plan to spend on your vacation home? property, taxes, building, furnishings, outfitting, equipping, insuring, maintaining, transportation?

Would you consider renting your current home [airbnb-like] for 8-12 weeks to help pay for a mountain retreat rental [like texas husker offers] to verify the enjoyment factor?

Alternatively, rent/buy a used RV to try out various types of locations with/without facilities to see the best fit?

[greenskeeper]

Additional payment for August $1500

newest dilemma -

at our current pace of additional payments we have less than 5 years remaining until the house is paid off, then the plan was to buy a vacation house in the mountains.

The wife has stated repeatedly that the kids aren't getting any younger (8 and 5) so the newest thought is to cash out refinance the existing mortgage and purchase a vacation house.

This would effectively "buy" us 5 additional years with the kids enjoying the mountains before they become adults.

[snafu]

amarowsky, kudos to you for your determination to stick to your plan as most people who are paid bi weekly would excitedly use the cheque for 'extras' particularly since there are 'back-to-school or holiday CCs coming due.

[amarowsky]

61.8/75K on 7/19/17.

Just the (now normal) $500 on top....

I had an extra check this month, so we managed to up the contribution by an addtional $1,500.

Normal payment + 500 principle monthly + 1500 surplus

59.4/75K on 8/31/17.

Really starting to chew away at it!

[snafu]

Well done markr! Lots of determination to put entire bonus [less tax] on mortgage principal but it makes a huge difference in the long run.

[markr867]

September 2017
Mortgage payment: #5 of 351
Extra applied to principal: $2,756.96
Ending balance: $297,934.00

I got a retention bonus at work and sent the entire after tax amount to the mortgage We are now down into the 200s!! We weren't in the 300s for long, but glad to leave them behind

That one large payment took 7 payments off of our mortgage. I knew the value of extra payments before starting this mortgage, but it is crazy seeing it in action.