Tweet
Good evening everyone!
For the past five years, I have been hitting the mortgage with nearly everything I got. In that time I have cut it in half. I have just recently refinanced the remaining $50k balance at 4%. My plan was to have the house paid off in another 3 to 4 years.
During the refinance, the home only appraised for $70k, not the original $108k it did 5 years ago. I am not looking to sale today, but there are two home improvement projects I need to complete before I do. First is replace the garage doors. This will run about $1,500 to $2,000. Second is reside the house, which will be in the $8,000 range.
The doors I am not so concerned about, I can just cut back on my lifestyle enough and budget it over a few months to pay for. The siding is a bit larger of a bite for me though.
Depending on the month, I have about $20k at any time in the bank (not including retirement). So if I wanted to do everything today, I could, but it would knock a hole in my emergency fund. If I spend that much on siding I would love to live here long enough to enjoy it.
On the other hand if I sale in say 5 years, I would then have 5 year old siding on the house.
I guess the ultimate answer is cut back on paying down the mortgage and build up the emergency fund even more to cover the siding. Now that I have cut the house payment in half, I not as disgusted with the interest I was paying to the bank or the size of the loan. Also with the cash in hand, if I change my mind it can be dumped on the mortgage at any point. Does this make sense? Should I replace the siding now or wait till I am ready to sale? Should I save specifically up for it or lump it in my current emergency fund. My $20k emergency fund seems overkill considering it is 5 years worth of payments. Then again, the siding only looks bad, if you look at it!
For the past five years, I have been hitting the mortgage with nearly everything I got. In that time I have cut it in half. I have just recently refinanced the remaining $50k balance at 4%. My plan was to have the house paid off in another 3 to 4 years.
During the refinance, the home only appraised for $70k, not the original $108k it did 5 years ago. I am not looking to sale today, but there are two home improvement projects I need to complete before I do. First is replace the garage doors. This will run about $1,500 to $2,000. Second is reside the house, which will be in the $8,000 range.
The doors I am not so concerned about, I can just cut back on my lifestyle enough and budget it over a few months to pay for. The siding is a bit larger of a bite for me though.
Depending on the month, I have about $20k at any time in the bank (not including retirement). So if I wanted to do everything today, I could, but it would knock a hole in my emergency fund. If I spend that much on siding I would love to live here long enough to enjoy it.
On the other hand if I sale in say 5 years, I would then have 5 year old siding on the house.
I guess the ultimate answer is cut back on paying down the mortgage and build up the emergency fund even more to cover the siding. Now that I have cut the house payment in half, I not as disgusted with the interest I was paying to the bank or the size of the loan. Also with the cash in hand, if I change my mind it can be dumped on the mortgage at any point. Does this make sense? Should I replace the siding now or wait till I am ready to sale? Should I save specifically up for it or lump it in my current emergency fund. My $20k emergency fund seems overkill considering it is 5 years worth of payments. Then again, the siding only looks bad, if you look at it!
Comment