UnThreaded | Threaded | Whole Thread (130) | Ignore Thread Prev | Next
Author: lmichelle One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308782  
Subject: Re: Can I afford this house? Date: 7/3/2006 3:38 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Our house was a fixer-upper on the water. So we put aside some of the profit from our home in NE to fix this one up. Which we did. We actually went a little above what we had originally planned and took out a $20K HELOC just to finish up some messy jobs before we actually moved in.

Then we got three hurricanes that made us have to fix more things than we planned on. Our roof and our sea wall had to be replaced. We did get some money from insurance but our deductible was $5K so it still hurt. We even got a low interest loan from SBA to help pay off some of what needed to be fixed.

So we made some bad decisions to fix things up too quickly and then had some bad luck from Mother Nature. Now we're paying back these loans.

Our property tax went from $2K/year (based on the first owner's purchase price over 30 yrs ago) to almost $10K/year. So for our mortgage company to pay that off, it increased our monthly payments from $2,200 to $3600. So we decided to pay as much as we could into our escrow to get our mortgage down to $3K/month.

I'm not sure what you mean by budget, do you mean monthly expenses? I'd be happy to post whatever it is you all mean. I'm really green, can you tell? =)

Monthly expenses;

$3K mortgage, insurance, taxes
$400 my car
$400 DH car
$300 HELOC
$300 SBA loan
$200 student loans
$100 life insurance for both
$50 cable
$100 phone
$200 electric
$500 daycare

Plus CC balances......

We don't go out to dinner unless it's a special occasion. We rarely order take out. I do indulge the kids in McDonalds when it's convenient. DH makes ~ $120K year. That seems like enough for us to be able to live a little richer than we are... and yet we have this debt that's keeping me up nights!



Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (130) | Ignore Thread Prev | Next

Announcements

TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! 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.
Advertisement