Mortgage Monday: Interesting Questions

No matter where, when, or at what price you purchase a house you will always have questions about your new home. Some are as simple as where things are located in the house while you still get used to your new surroundings. Other times you are curious as to the best routes and best places to shop around your new location. These are just a natural part of the process no matter who you are, where you live, or how much research you did before you bought your property. For some that remain local or knew the former owners they are quickly answered while for most of us it is just a process that takes time.

However, there are a few other questions that I find floating around in my mind that I have also asked a few people from time to time. They are actually more prevalent than I thought even for those who believe that they have the perfect home. It also proves that there is more to a home than the place or the structure. Here are the questions that most people admit to having had fun with in the past:

• Would you still chose to live in the same place where you currently live? If no, where would you look? Yes. We really enjoy the town, the privacy, and the space. 
• Would you build your house the same way that you bought it? No. There are certain things that we want to change and add. Nothing needs to be changed. All minor things that are easily adjusted. Also, there are some aspects of our home that, at the time of purchase, we didn’t realize we wanted.
• Would you live in the same place and/or buy the same house if you had unlimited funds at the time of purchase? Yes and no. Great value in our home but we might have made some modifications immediately after purchase.
• I guess the same thing applies to those that had their house built… would you build it the same way now that you have lived in it? N/A
• What would you change (what would you have changed at the time) if you had unlimited funds? N/A
• Change or rebuild? N/A

I am sure that many of you were thinking about your own responses as you read through the questions above. And for those with whom I have spoken that consider the place they live to be their home, there is nothing in their responses that have led then to regret their previous decision. The certainty waivers a bit when people consider the place they live to be their house. For me, this has actually been an interesting exercise that has proven our decision to be correct time and again… we found the perfect home for us even with its imperfections.

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.