About ten years ago Shannon and I went through Dave Ramsey’s Financial Peace University. Over the course of the next few years we shed over $40,000 in consumer debt and refinanced our house into a ten year mortgage with the target being complete freedom from debt before 2020. We took several groups from our church through FPU, we paid $12,000 cash for a new roof on the house, we wore out one of our paid for cars and had to finance its replacement and paid that off. We have gotten off track a few times and found our way back, and for the most part have stuck to the program. We have over $100,000 equity in the house and with the exception of the balance on the mortgage and the new-to-us CRV Toad we are still debt free.
The 10 year mortgage comes with a pretty hefty payment, and as I was bemoaning in my last blog, we couldn’t see our way to buying the RV for our new full-time adventure before we sold the house, and so were becoming resolved to the less than ideal situation of living in the house, and in limbo, until it sells.
The “perfect world” plan is this: to buy the RV before we list the house so that we can be done with that part. . .the fixing, the patching, the painting and the purging, so that we can be living in our new home (all be it in our own driveway) and practicing on short trips. The “real world” truth of it is this: we probably can’t afford what amounts to a double mortgage payment while we are waiting for the next people to make this their dream home.
Enter “Plan B”
About a month ago I approached Shannon with the suggestion of refinancing the house back to a longer term and a smaller payment, and using some of the equity in the house to expedite the dream. Much to my surprise, he was open to looking at the idea, and after weighing the pros and cons and figuring in the cost of the refinance, we decided to go for it, to get the payment down and take out enough extra money to pay off the car loan and stash the down payment for the RV. This gives us a lot more cash flow for getting the house ready for market in January, and we can seriously shop for the RV in the fall instead of waiting until the house sells, however long that may take.
My sense of relief is palpable. Even though we will not be continuing to build equity in the house and have actually incurred some debt (sorry Dave), we are betting that it is only for a short while, and our timeline no longer has this vague waiting space in it. Happy girl!