New Mustachian with Some Money Questions

[dbanta]

I just started reading this blog last week and I just can't stop!  I am a software engineer and math major so I really appreciate the logical approach mustachians take to things.  However, I can't help but feel overwhelmed by the options of spending money (investing in home improvement, mainly insulation versus paying off my mortgage) and saving money.

To give a little more detail, I live in Fort Collins, CO just a bit north of MMM I believe.  We just had an energy audit done on our 1979 house and got some estimates for improving the insulation as a result of the audit that come to $4000.  For an extra $1750 we can add in a whole house fan.  I have not paid off my mortgage yet (but it's my only debt at this point).  I have auto payments setup for every other week to get some extra payments in there and my credit card points go towards paying off my mortgage.  Is it worth it to insulate the house (we do get pretty cold in the winter/hot in the summer) or should money just always go towards paying down debt first?  Does anyone have information on the savings of a whole house fan?  Would it pay for itself in a few years?

Alternatively, since my interest rate is pretty low (4.5%) does it really make sense to pay off my mortgage first when I can invest money for a potentially larger return (13%) through the Lending Club MMM discusses?

[Cromacster]

Well there are still a lot of unknowns.  If you want advice that is actually meaningful you need to lay all the cards out on the table.

https://forum.mrmoneymustache.com/ask-a-mustachian/how-to-write-a-'case-study'-topic/

Regarding the insulation:  What do you current energy bills look like?  Could you do the work yourself?  Depending on the type of house you have you could do this yourself for 2000 or less.  Is that an option?  I recently installed my own insulation in my house.  I did it for 2300 where the Bids I received were between 4k-5k.  I spent about 30 hrs over 3 days completing this with the help of a few other people.

[dbanta]

Thanks for the link.  I think filling out that information might help me organize and figure out some stuff as well. 

Thanks for sharing your experiences of doing the insulation yourself.  It's helpful to know about how much it costs to DIY.   Did also do air sealing, etc?  We do get credits through our gas and electric companies if we have an approved company do the work (the original estimates were around 6000, but with the credits it should come down to about 4000).

We have a gas furnace and spend between $17.04-$85.15 on our gas bill per month (higher in the winter, lower in the summer).  We rarely use the AC in the summer, but I would hope that we are just comfortable and able to keep the house cooler in the summer with better insulation (opening the windows at night to cool it off and keep it cool during the day).  Typing in how much we pay to heat the house, it looks like it will take a long time to come out even with investing 4000 to better insulate it.

[Cromacster]

Yea I decided the credit I would receive didn't cover the savings I would get doing it myself.

I have a 1 1/2 story, so the insulation becomes a little more difficult and more expensive.  I just completed it Dec 27th I believe.  I would recommend doing this type of work in the late fall, winter, early spring.  I would never do this in the summer when the attic is 100+ degrees.

I started by air sealing along the edges of the attic, as well as sealing all the light fixtures, plumbing penetrations, and wire penetrations.  Since I had finished space in the attic, I also had to seal any gaps along there as well as place foam blocks under the wall, between the ceiling joists and seal those.  Installed vent chutes in each cavity.  Then blew in about 16 inches of cellulose insulation.

I haven't broken down costs for just the attic.  I did two other projects in tandem (bathroom exhaust, 90% done, basement rim joist sealing, not started but materials have been bought).  If I subtract those projects and take out tools that will be reused in future projects.  My spending before taxes was roughly 1300.

Now I know this is anecdotal, but this is what I have noticed so far: The frequency that furnace kicks on has been reduced significantly, The floors on the main floor stay warmer (says the wife, so it must be true), the finished space in the attic stays closer to the same temp as the rest of the house (previously usually 10 degrees cooler in winter), and my house is generally just more comfortable.  I will get a better idea with the next few heating bills (I also have a gas furnace), expecially since its been -20 for lows and a -11 high yesterday here in MN >.<

Edit:  Good starting place for all the things to cover when completing this type of project.

http://www.energystar.gov/ia/partners/publications/pubdocs/DIY_Guide_May_2008.pdf