What should I do with my house and mortgage?
March 22, 2014 7:01 AM Subscribe
I have never refinanced my house, but am weighing that vs. investing my money elsewhere. Please advise.
posted by deern the headlice to Home & Garden (12 answers total)
Basic facts. I live in a town frequently listed as one of the best US Small Towns. As real estate prices spiked in 2005, I bought a ranch house for $220,000. All I could afford at the time was an interest-only loan. My mortgage has been $1400 a month.
Since then, I've gotten a divorce and am now paying that amount by myself each month - essentially renting the place from myself. I have redone the kitchen, French doors, etc, and feel like I need to have some actual equity in this house though. The house is currently valued about $5000 less than I bought it for, which is an improvement, but still.
I am confident that the market will slowly improve and I'm considering a move to the city anyway and just renting my place out.
What would you do here? Refinance the house and start making small deposits toward principal each month? Or just hang onto the house and invest money elsewhere? FWIW, I am 40 and make about $60,000/year. Thanks!