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Refinancing Update

January 22nd, 2020 at 02:05 pm

The refinance is finally moving forward. We had to pull a new credit report since it had been so long, and with all of the overspending (including the new car), I was a bit worried. I was pleasantly surprised to find out scores were both well in to the 700s. Doesn't seem like a big deal, but when you've consistently been low to mid-600s for a decade, it feels like nice progress.

We did the appraisal yesterday, so just need to finish getting in all of the paperwork, and will hopefully be good.

Someone had suggested paying off debt with the money that we're getting back. Honestly, we'd been so focused on some of these house projects that we've been wanting that it never occurred to us to make big leeway on the debt front. It just feels like debt is so ingrained in our lives that we should use it to fund some of our wants that we've continually put off. I talked to my husband about it, and we decided to split the difference. We plan to add $2k to the EF, pay off the credit card for the fence ($5k), and then choose one house project. We nixed the 2 less important ones and have one inside (basement bathroom remodel - main cost would be materials since FIL would do the labor) and one outside project (backyard remodel - regrade yard, install better underground drainage, deck maintenance, and fence/deck staining) that we plan to get quotes on before deciding. But we may end up changing our minds again and just putting it all to debt or to savings.

In personal news land, our new addition is healthy and everything is going well so far, so fingers crossed that continues.

2 Responses to “Refinancing Update”

  1. CB in the City Says:

    Even though it is very hard to wait, paying off debt with windfalls is a better choice. When your debt is handled, you can save up for the projects dear to your heart. Otherwise, you're just in a treadmill.

  2. Debt-free by Thir-ty Says:

    CB, that's so true. I just don't ever see myself getting off the treadmill, so it's easy to justify using the money for wants. But I also know that the only way it's ever going to change is if I make it so. I'm thinking we'll probably end up waiting and splitting it between maternity leave savings and debt since that's the more responsible thing to do. But as a first step, taking only 2 projects off the table completely felt easier than nixing all home projects.

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