The Depressing Part

Right around the time that my A/C went, I calculated exactly how much I owe on my house.

I bought my house for $231,000, but rolled in closing costs, so I really paid $240,000. I got an 80/15/5 mortgage, which means I paid 5% down ($12,000), put 80% into the first mortgage, and owed the remaining 15% in a second mortgage. So really I guess I started off owing $228,000.

Well, kids are expensive. I ended up rolling credit card debt over into my second mortgage. Twice. Each time vowing never to let my credit card debt climb again. Ha ha.

At first, that didn't seem so bad. The value of my house inflated to a whopping $500,000. But then the economy tanked. My realtor told me a few days ago that today I could get around $285,000-$290,000 for it. I've lived here nearly eight years. Once I factor in closing costs on both ends and moving costs, I'm not sure that would leave me with enough money for a down payment on a new place. If I wanted to move. Which I don't. Right now. Well, except to Hawaii.

As of today, I owe $167,398.51 on my first mortgage and $60,000 even on my second mortgage (which always gives me the option to pay “interest only”, so that's what I do) for a total of $227,398.51. That's $601.49 less than I paid for it, if you take the down payment into consideration. It's $3,601.49 less if you use the $231,000 figure and $12,601.49 less if you use the $240,000 figure. But I obsess...

Under almost any calculation, I now owe more on that new A/C unit than I've paid down on my house.