Last month (December):
Years left: 2.5
P =$1,066.94, I =$147.47, Escrow =$788.73
This month (January):
Years left: 2.25
P =$1,079.06, I =$135.34, Escrow =$788.73
One month’s prepayment savings: $7.91
If we kept up with our current rate of pre-payment, we would be done with the mortgage completely in less than a year.
We aren’t going to do that.
Why not? Because we need the money! Why do we need the money? Because I’m only getting half-pay and we’re moving someplace for the year where daycare and housing are both twice as expensive. (It’s all official!) And taxes are insane because they provide social services and things. Crazy, I know!
So we will need that extra 2K/month to pay for goods and services instead of pre-paying our mortgage.
It seems like there’s always something going on with money–getting ready for DH to quit his job, adjusting to DH having a job, then adjusting to a year at half pay with bigger expenses. Life is never really in steady-state.
There’s so much to worry about. Housing, schooling, daycare. Months worth of money posts, eh?
We still don’t know what to do about the house. I’m strongly tempted just to get a trustworthy grad student to kitten-sit in exchange for free rent and taking care of the house and utilities (we’ll be bringing Little Kitty with us, but we can’t take 3 cats, so either the cat formerly known as mean kitty will have to go with a relative while we take nice kitty who pees with us, or we’ll leave both kittens with a sitter.)
DH thinks it will still be worthwhile to try to find someone to rent at market price, even though that means we’ll have to fix the bathroom, repaint, and keep things clean constantly (also probably pay for storage for our furniture). I think we’ll end up probably doing a hybrid– posting to sabbatical and new faculty sites and then getting a house-sitter if nobody bites. Possibly striking a deal with new faculty if they are amenable. We’ll see. We may not worry about this until March. I don’t know.
The most we would get for renting the house would be around 20K. DH thinks that’s a lot, but given the amount of work we have to have done first and the annoyingness of keeping lawn and house sparkling (not to mention housecleaning expenses), I’m not so sure. But maybe if we avoid Craigslist and just stick to a few exclusive sites it won’t be so bad. Maybe we’ll get lucky.
I hope this all works out! But if it doesn’t, I don’t want to be stressed. Based on my projected savings calculations and the savings we did when DH was unemployed that we never put away (because we knew this was going to be a possibility, though we *thought* it would happen last year), we should have about 85K in our emergency/to-spend fund by May. Hopefully that will be enough to keep us from stressing out if we don’t find tenants along with the paycut and the additional required expenses. Right now I’m hoping to continue contributing to retirement and the 529s (although retirement literally would take up all of my take-home pay, so I won’t be able to completely both max it out and do a DDA and pay for health insurance), but that’s another area we can loosen if we need to.
I’m both excited and scared. But I’m not that worried about money. Still, we’re still going to have to stop prepaying the mortgage sometime this summer.
(Technically if I had another 72K, or even another 48K, I would be less worried about money. A lot of our problems would be solved if we could just afford 6K/month to rent out a furnished house from a professor on sabbatical. Our friends say there’s going to be a market correction, but I’m not holding my breath that it will happen before we get to or even before we leave paradise. Bubbles can take a while to pop.)