Monday, September 30, 2013

Financial aggravation in the AM

My partner is up my butt again about refinancing my house. We went through this a year ago, right after he moved in, and even had a guy do some paperwork for us to see what could be done. Poor guy. I feel guilty about wasting his time, but whatever keeps the peace at home, you know?

I have an FHA loan, because I was a first-time buyer who rescued a foreclosure, and that limits things slightly. But overall, I think what I have now isn't a big problem. I pay $681 a month, including all the taxes and fees. Everyone wants to pay less for everything - just take that as a given - but all things considered, the house isn't under water and it's in moderately okay condition. The interest rate on the loan is 6.0%, fixed. I bought the house the literal day that the economy crashed. I have great credit, but low purchasing power; I make my bills, but I don't make bank, in other words.

We are planning/hoping to move to a nicer area within the next three years. Because of that, I think refinancing would be a disaster because of closing costs and lost equity. I'm the only one who ever put a dime into the house, so obviously, he doesn't care about these aspects and believes we wouldn't pay ANY closing costs. He didn't say as much, but I know that means rolling the closing into the loan and therefore not just paying closing costs, but interest on them as well. NOT cool.

I guess he saw something on the news and is running with it in hopes of getting free money somehow.

Still, I feel really certain that refinancing is not the answer for us. If we were going to stay here long enough to recoup costs and establish more equity in the house, I would go for crunching the numbers again, but for me, the priority is getting the hell out of this neighborhood! I don't want to damage our chances with some risky scheme.

Now, I just need to convince him of that (again).

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