What a great title for one of my posts!! I'm going to be hard to get a hold of this week. DJ starts high school. We are doing a lot of last minute packing for Anna and I'm praying that we don't have a repeat of our last trip to EIU! I would say that there is no way that it could be worse than our last trip but then you all know my luck and I won't be saying that!
I have a question that may start a serious fight. I am NOT saying that I'm going to do this, we probably will not. It is just something that I have been pondering for a while. Is it really a good idea to be paying 3 extra house payments a year? If you need a refresher on our budget, go here. Our budget is as tight as you can get it. It is to the penny. That said, I often leave out the fact that we max out on Den's retirement and we make 3 extra house payments a year. We are so broke because we choose to put every last penny towards the "right things." We also have a really good plan if Den becomes unemployed.
I'm not saying that we will be able to keep up the extra 3 payments a year. It is looking like we will be burying the focus pretty quickly. And we will eventually need another car. But until then we will continue to pay extra on the house. But is it wise to pay extra on a house that is losing its value. We owe $125,000 on it(the same that we bought it for, yuck!) we have been here 15 years and have had to refinance it a few times. We rolled in some debt and here we are. If I had to do it over again, I would not do it the same but here I am. At its peak, this house was worth about $200,000. Now not so much. A house right down the street from us is going for $139,900. So is it wise to sink money into something that is losing its value? We plan on staying here so I guess the answer is yes, it makes sense to pay off this bill. But wouldn't I come out ahead if I put that money in savings?
This is just a question but I think that it is worth looking into. Try not to stroke out when leaving a comment! I have such smart people stop by that I figured if I wanted a correct answer, this would be the place to ask it. You all are like my magic 8 ball!!!
Thanks for stopping over,