Author Topic: Rent, move and bike!(?)  (Read 4706 times)

Stubbleman

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Rent, move and bike!(?)
« on: February 15, 2012, 10:05:15 PM »
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« Last Edit: March 13, 2012, 08:14:40 PM by Stubbleman »

MEJG

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #1 on: February 16, 2012, 07:19:38 AM »
Not someone who has btdt but in your situation with a partner who has health issues (partially due to stress!) I would move!

I'd lean toward the 30 yr mortgage to give you some wiggle room and pay as if it were a 15 yr mortgage.  The +0.25% isn't great but it also isn't huge, and unexpected things happen.  If in 5 years the two of you are in a much better place health and money-wise because of this move you can always reevaluate and pay-down harder.

Landor n Stella

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #2 on: February 16, 2012, 07:33:49 AM »
Is selling the house not an option? If it is far away from everyone now, even if you planned to keep it to retire in, it would still be far away from everyone at that point too.

EnemyMind

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #3 on: February 16, 2012, 07:43:41 AM »
this will come off negatively most likely, its really just a question based on the logic behind spending bunches of money for something that you wont be able to recoup.

I would term it as detached logical mustachianismz, no offense intended.

but what is the point of her continuing the degree if she wont be able to fully profit from it? it would seem if thats truly the state of things cutting your losses is a better idea.

EnemyMind

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #4 on: February 16, 2012, 07:44:58 AM »
this will come off negatively most likely, its really just a question based on the logic behind spending bunches of money for something that you wont be able to recoup.

I would term it as detached logical mustachianismz, no offense intended.

but what is the point of her continuing the degree if she wont be able to fully profit from it? it would seem if thats truly the state of things cutting your losses is a better idea.

Somehow skipped the " done in may " part of all that, guess its already complete by this point.

MEJG

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #5 on: February 16, 2012, 08:14:07 AM »
but what is the point of her continuing the degree if she wont be able to fully profit from it? it would seem if thats truly the state of things cutting your losses is a better idea.

Not the OP, but I just wanted to point out that depending on the degree she's after the program could be much much more stressful than the actual job.  Also, many women (myself included) find that after having a child they like their work (I love my child!!!!) and an ideal world would look something like 15-20 hrs a week in the field they love, the rest of the time home with children. 

Early retirement is a wonderful goal, so is Swamihood.   I'm not saying this exactly where the OP and his wife are, just that there are cases like this.

MEJG

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #6 on: February 16, 2012, 11:42:33 AM »

The total cost above the principal for the 15 year loan is $83,000.  The 30 year loan runs $210k above the original principal. Ouch!
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I fall into the early retirement camp.  And you nailed it - she falls into the will work forever camp.  However I want her to be able to step away to any degree necessary  if health issues come up again.  I believe she will end up working part time like you describe.

Sorry I wasn't clear :-)  I meant if you take a 30 year loan, and still pay the amount that would pay it off in 15 years (calculate and print an amortization schedule for a 15 year loan for the total at the 3.75% APR)  That way if something did happen and you would have some wiggle room.

Yeah, FI is all about freedom, the freedom to work, not work, or work some of the time :-)  Good luck!

adam

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #7 on: February 16, 2012, 01:25:52 PM »
We are in a similar situation where I am commuting 160 miles a day and she is commuting 8.  I make twice what she does and I have a house 4 miles from my place of business, so we are moving back sometime in the next 4 months.  We have the same issue with her house though, a logical selling price is basically what we still owe on the mortgage.  But then with all the fees and whatnot associated with selling a house we could be looking at paying $12k out of pocket that we do not have (we are aggressively paying off other higher interest debt).

I guess if I just spent some time to calculate the break even cost I could sell her (and myself) on the idea to sell the house quickly, but we also have to take into the account that not only will she possibly not be working any more, but that there could be a baby in the near future.

That being said, she had an interview for basically her same job back where we plan on moving yesterday.  We are crossing our fingers.

adam

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Re: Refinance, rent, move and bike!(?) - Shortened for clarity
« Reply #8 on: February 16, 2012, 02:01:04 PM »
Have you ever thought about renting your current place out for a few years? 

It sounds like things may fall into place for you if she gets the job.  Good luck!
My house (4 miles from work) is currently rented, due to be mine in June/July
Her house (80 miles from work) is the one we currently live in and we're trying to sell.  We would rather not rent if we have a choice.  The question is how much money is peace of mind worth in this case?