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Subject:  January ThyPeace Update Date:  1/7/2013  11:14 PM
Author:  ThyPeace Number:  306653 of 312188

Hi there! It’s time for an irregular update. Last time around was in August, when I mentioned the potential for increasing my mortgage in order to pay for a home remodel. I refinanced my mortgage a couple of weeks ago and have collected every spare penny I have, and the architect understands that we have a fixed-limit budget and will not exceed it.

Still, life is expensive when you start to do things like this. We have arrived at a mortgage payment that is $100 more than my payment was before (with the additional money I was putting into it, so if you decide to do the math, know ahead that it won’t work out perfectly). DH is going to contribute that from savings from his recent mortgage refinance, so our total payments to debt will be close to the same.

However, the total debt is still really worrisome for me. It’s a 30 year mortgage, which means that if I don’t pay it off early, it will be done when I’m 75. I don’t want to have a mortgage when I’m 75! The other part that worries me is being back to as much debt as I was in when I started posting on this board in 2005. Seven years of work. Argh. I’m in a much better overall financial situation than I was then. But still. Argh.

So that’s the hard part. The part that makes me really happy is that the roof won’t leak, the basement masonry will be repointed, the 70-year-old sink and tub will be replaced and re-enameled, the sunroom will finally be reconstructed, and I hope to get at least a master bath and a slightly larger bedroom, and the architect thinks we can rough in most of the rest of the original addition, even if we can’t finish it all. That will significantly increase the value and soundness of my house, which is something that’s been on my goals list for many, many years. (As in, ever since I bought the house ten years ago.)

With all that said, here are the new numbers. Goal: Pay off the mortgage in half the time I have and be done when I’m 60.

				5/31/2006	12/30/2011	
401(k) Loan: $29,173 Paid in full
Family loan/college fund $32,965 Paid in full
Family loan/car ($5k in 2008) $ 0 Paid in full
Total Non-Mortgage: $62,138 $ 0

Mortgage: $283,306 Rolled into new
New Mortgage $ 0 $ 352,000
Total all debt: $345,444 $ 352,000

Total paid: $108,097

This doesn’t really seem like a good way to show it, as I’m now in more debt than when I started, but I have in fact paid down $108k of debt. I hope it makes sense!

ThyPeace, really looking forward to the peeling paint on the ceiling going away, and the peeling paint on the chimney…
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