Moving to our new home

**mikandmari** · 01-12-2010, 09:17 PM

I remember reading from time to time about others on here selling & buying a new home. I just wondered if anyone could share their stories of how easy/difficult it was to settle in financially.

When I joined FV a few years ago, my goal was to move to a better neighborhood in 3 to 4 years. I'm happy to say I've met that goal, and we go to settlement later this month.

The bad news is, of course, the bigger mortgage. I wanted to keep the payment down in case of any crisis, so we are increasing from a 15 year mortgage back to a 30 year mortgage

. My goal is to pay it off in 20 years or less.

It feels like the right thing to do. I don't want to grow old in this rough neighborhood. And it's a good house, too: better insulated, new heater, windows, etc. I'm a homebody, and I don't mind sacrificing to live in a nicer place. But I'm still a nervous wreck because I have an adversity to debt!

I'll just have to be on the ball about watching every penny, so I can get this thing paid off!

**Surilda** · 01-13-2010, 01:12 AM

I rent, so I can't answer your question.

I just wanted to say congratulations on achieving
your goal and your new house!!!

Hoping it will be everything you've dreamed of!

**Siebrie** · 01-13-2010, 04:23 AM

We moved from The Netherlands to Belgium 2.5 years ago, and than within Belgium from a studio to an apartment 1.5 years ago (in the same building luckily). It has taken us all that time to settle. I baked my first batch of cup cakes this weekend, a sign I'm finally feeling at home! Due to my fulltime job and dh's fulltime school it has taken a long time to get to know the area, where the shops are, which shops are best price/quality, etc. We finally have the idea that we have a grip on our finances.

The above should not put you off: we did a lot of expensive things our first year in Belgium: marriage, dd was born, bought a car, went on expensive vacation to Africa, had extra costs for heating, etc. If we had not done that, we would have had a grip on our finances sooner, but it was totally worth it!

**VanVivCam** · 01-13-2010, 06:07 AM

Nothing to add...sorry. I just wanted to say congrats on your new home! I hope you find the neighborhood more at ease. I am sure you will be fine with the mortgage (as a frugal warrior, I know you didn't buy more than you can afford!!).

Enjoy and good luck moving!

**mombottoo** · 01-13-2010, 08:37 AM

Congratulations on your new home! I never considered our home a debt, but an investment. Of course with the housing market being what it is today our investment has lost some value...but, since we aren't planning on selling hopefully it will regain some of its value.

That being said during the first 3 years we lived here I mailed in additional principle payments totaling the next 3 months every time I made a payment. So we were actually paying 4 months principle with every payment. Then in 1994 we refinanced to a 15 year note and then in 2003 we paid off the note completely. We wouldn't have refinanced at all, but we were having some issues and the terms were too good to pass up. Figure we did ok though since the original note wouldn't have been paid in full until 2016.

If you can afford to make additional principle payments, you will pay off your home much quicker and you will save a ton of money in interest charges. Even if you can't pay entire principle payments any additional money you send in will make a difference down the road. Just make sure you note on your payment the additional funds are to pay down your principle or they will stick it into your escrow account if you have one.

**Josephhgoins** · 01-13-2010, 09:21 AM

First CONGRATULATIONS!!!

Second, I read somewhere that there are all sorts of actual tricks to getting the debt down, without actually paying more money per month.

On a 30 year note, if your payment is due at the end of the month, pay half te first 2 weeks of the month and half the last 2 weeks. You end up spending the same amount per month but by paying half the payment 2 weeks early, you will save 2 payments!

Also, another trick is to pay one month ahead and you can cut out 3 payments. So if your payment is due at the end of the month, pay it at the first of the month.

I currently rent in a large city and have a home in the country that is paid for. I plan on buying a house next year here though.

I hope you enjoy your house for many many years.