No. of Recommendations: 0

This is very helpful. I get lost in the numbers because my brain says "debt bad, pay off good" which of course is true for unsecured, high interest debt but soooo different for mortgage debt.

I did a calculation and my home has appreciated from 1997 to now at an average rate of 8%/year (YES, I refinanced too many times and took money out but I did home improvements each time). That's pretty good and the area seems to only be getting better. In fact, when we do sell, it might be a good idea to keep the house and rent it out.

One more fact that I hadn't mentioned before is that in reality, we would like a new home because I bought this alone and now am married. There are a lot of things that we would like to change but cannot in this house. i.e now there are two cars, only one garage. That garage is the ONLY entrance to the backyard from the house and when there is a car in it, you have to be really skinny to go around it, very small. The size is OK for us but we would rather have bigger rooms and less of them as it seems so cramped. Also, our lot is huge, would be so much nicer to have less yard and more house. How long can we put up with this? Well, forever but it's just one of those things we both would love to do right now but financially I don't think it's a good idea. After the credit cards are paid off and my job is more stable AND we have some money in the bank. A few years off....

Thanks again for the help!
Print the post  


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.