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Author: mew5280 Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127262  
Subject: Re: When to Refinance Date: 10/6/2005 3:24 PM
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enterpriseman:

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!
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