Mortgage Monday: The Checks Start Now

With payment book from the bank in hand, the first of our many mortgage payments is due this week. While 30 years is a long time to be making payments at least we now find ourselves with an end date and with every payment we own a little bit more of our home. Of course, we hope that it doesn’t take us 30 years to clear this debt, at least this is the goal, so we are going to be sure to pay a little bit more each month toward principal.

Having already made an early payment it is a little disconcerting at first seeing the principal reduced by so little with every check. But, again, it is still giving us more equity each month compared to the simple evaporation of funds that we have experienced over the last several years. Now that is a disheartening number to think about. Even if your average monthly rent was $1200, over the course of five years you will have ended up paying $72,000 and have absolutely nothing to show for it. In the end, given the places that we have lived and the years that we have been renting, it is safe to say that our total is probably just north of $100,000. Seeing that principal going down by so little doesn’t seem that bad anymore.

Of course, now with us owning our home, we are also responsible for the maintenance of the house and surrounding property. A few other expenses should be expected and even with major repairs, it is still better than renting… and more cost effective given the amount of space that we now have. Each check brings us a little closer to what continues to be our goal… being debt free. While credit cards were the culprit in the past, at least now the debt is something tangible and something worthwhile.

And I will finish with this simple notion that seems to no longer be simple. While it is nice if our house increases in value over the years, all I want is the stability. If the value of the property were to stay the same I would be happy in the end. What is now seen as investment should be, once again, seen first and foremost as a home. That is how things used to be and how I view our new home. Paying interest is the price of being able to buy a home and have that stability. Our limited funds are now being applied toward a goal, something of value, and stability unlike the month to month uncertainty of the past. Now, each month, we can settle a little bit more.

Mortgage Monday: No More Rent

Since we’ve been together, my wife and I have always written a rent check every month. The amounts may have varied over the years but the one thing that remained constant was the fact that we didn’t own the place in which we lived. It is a rather disconcerting notion when, at the end of the year, you look back and see all of the money that you gave to someone else without having anything really to show for it. It is primarily because of this that we have been wanting to buy a place of our own for years.

While it has taken longer than expected and it had happened under circumstances that we both wish could have been different, we are no longer writing rent checks. Now we find ourselves flipping through the payment book sent to us from our bank knowing that with each page that we turn we own a little bit more of our home. And with each month we add just a little extra, as much as we can, in order to shorten that three decade commitment a little bit at a time.

It really is a different experience when writing these checks (actually, setting up the automatic payment and watching the funds evaporate from our account). There is a goal in mind with a clearly defined payment period. There is certainty and stability in the payments we are now making and, to a certain extent, we look forward to making these payments as each check or transfer is one less that we have to make in order to own our home in its entirety.

Owning our own house also allows for the freedom to change or keep things the same as we see fit. There are few limitations especially without the presence of a homeowner’s dictatorship/association. It is true that we have to maintain everything ourselves but we can also fix things ourselves without the potential repercussions from a landlord and we can chose who we want to do the work if we find it is beyond our limited knowledge and experience. We are able to make things right in our own way in our own time.

We also have the peace of mind knowing that we are staying in the same place. There is no lease and we don’t have to worry about our rent going up next year or the owner deciding that they no longer want to have tenants. We have a place that offers us permanence and stability for the two of us and, more importantly, for our son. This is the home where our son is going to grow up and that is an amazing feeling.

Moving Quotes And Changing Plans

For the past week I have been busy not only prepping for settlement day (which has been pretty smooth thanks to those at the bank and our realtor) but also preparing for moving day which has been a little move involved. Having received quotes from about a half dozen companies in the area, it is amazing to see the difference in how the prices are calculated. While not as expensive as I had originally expected, it is still not a cheap proposition especially when you ask them how much it would cost to have the company pack up your belongings as well.

The range of prices that I received was rather staggering starting at the low end at $700 all the way up to a ten times multiple of that initial figure. Surprisingly the economic company that we used for our last transition, Two Men and a Truck, was the most expensive (by a wide margin) because of the fact that we are moving just outside of their ‘service area’. In the end, we didn’t go with the least expensive but rather the company that seemed the most inclusive, had the appointment available for tomorrow, and was reasonably priced (still on the much lower end of the range).

However, nothing ever goes as smoothly as it should and that was definitely proven about a week and a half ago when I got a call in the early evening which changed our plans. Who called? The realtor representing our current landlord… he wanted to start showing the townhouse in a couple of days. Keep in mind that we gave notice with our September rent check so he could have coordinated this whole process months ago.

Having not packed much of anything at that point I quickly rejected his proposal pushing the earliest possible day to this past Sunday also adding the reminder that we have a 9 month old and he will have to be flexible in scheduling appointments. What realtor in their right mind calls a tenant and asks to begin showing the apartment in a couple of days?

So, since then I have been packing the house deep into the night and making friends with the sales people at Staples, Home Depot, and Lowes. With an evening to go there are only a few more boxes left that need to be packed, the bathrooms and kitchen have been cleaned, and we are, for the most part, ready to move on down the road in the morning. One more night with the preamble coming to an end and the real story beginning tomorrow.

Not Welcome!

Last night my wife and I decided to again take our apartment building up on an offer that was made to us shortly after moving in… we decided to attend a board meeting. We had attended a meeting sometime during our first few months after being encouraged to do so by board members and management but haven’t been to one since. While we are not shareholders, the meetings have always been promoted as open to all residents but we really had no real motivation to attend until this month. Having handed in our request to terminate out lease last week and no hearing anything back as of yet we were hoping to at least get an answer.

Before heading down to the basement, we went up and finally visited with a couple of residents that we are very fond of. Regardless of the issues that we have had with the building, there are many great people that still live there as well as many that work there too. What we were able to confirm is that we were not the only people that have had issues and do not agree with how things are being managed. And this was coming from a former President of the board.

After catching up for about 20 minutes we all piled on the elevator with someone else heading to the meeting. We walked into the room and quietly shuffled into the back row not saying a word to anyone. We were there to listen not to cause a ruckus (other residents had already planned on doing so making there no need for us to say anything). My wife and I had just settled in and were chatting about other things that we needed to get done when the current president made her way to the back of the room.

It didn’t come as a surprise that we were asked to leave. After all, I didn’t bow and kiss her ring when we walked in the door. The new rule (declaration might be a better word) is that the meetings are only for shareholders… a complete change from our last experience nearly three years ago. Again, we were not there to make a scene so we got up, let our friends know what was going on, and made our way back to the apartment without any answers or even an acknowledgement of our formal request.

For now, we have to keep waiting until we receive notification. However, given the length of time that has passed, I am starting to plan on taking alternative action with regard to our lease. Nothing drastic, just putting all of the hard facts on the table and allowing them to speak for themselves. I guess we will just have to keep preparing and see what happens from here.

Not A Happy Anniversary

There are some days that you mark on the calendar that you look forward to and there are other that you hope never some to fruition. Sometimes it is a major life event while other times it is just an annoyance that keeps frustrating you every day when you come home from work. Unfortunately, today we marked the latter of the two which I had been anticipating but hoping that I would be proven wrong. That’s right, for those of you that recall the gripes from the summer, the work on the leak is still not complete.

While the actual issue with the water seems to have been solved, or at least the band aid is holding up, and the painting was completed a couple of weeks ago, the building has yet to clean the space which we still have quarantined in our living room. Keep in mind that maintenance has not been in to check this ‘fix’ since they closed the ceiling so it is questionable whether or not the mend will hold. If it were a few little pieces and drips on the carpet I probably would have addressed this once the painting was done but this is a much bigger mess than what our vacuum can handle. This is the kind of job that requires professional carpet cleaning which the building manager had agreed to employ not long after this whole debacle began.

So now I have to burn another early morning and corner this woman in her office to at least get a response to the countless queries that have gone unanswered. While we had issues with the previous building manager it was never this bad and things continue to deteriorate the longer this management company runs the facility. Hopefully, this issue will be resolved soon but I lend that statement no more credence than the cliché of yelling fire in a movie theater.

With all of that said, there is a positive side to this whole thing in that it has motivated us, more so than before, to get the heck out and find another place to live. While we made an attempt in the spring, we will be successful this time around as our lease winds down to a close. Hopefully, if we begin looking a little earlier we can find a better place to call home not just a box in which we live. I guess we will just have to wait and see what we can find and hope that there are options available to us.