It’s time for a budget update


I think it’s been waaayyyy too long since I’ve updated about our budgeting. It’s crazy to think we started this plan almost three years ago, we’ve paid off all our debt (except our house) and we are saving again for our future.

Now, it’s time to address that one except. The house. We paid off mortgage number two (15% of the value) when we were paying down our debt and had it down to only mortgage number one (which was 80% of the original price of our house, so we could avoid paying PMI.)

So, we had this mortgage for our pretty new house, and we got rid of our debt, but we had to figure out how to make it even better for us.

We discovered the good and the bad about the current housing market very quickly. The good: We could refinance our house with a much lower interest rate, so much lower that we went from a 30 year mortgage to a 15 year mortgage with not much of an increase in our payment.

The bad: The value of our house dropped so much that we had to come to the table with money so that we could refinance 95% of the current value of our house (remember it was less than 80% just a few years ago).

Also, we had to get Mortgage Insurance. It was a bit of a downer, but we knew it was required by the mortgage company. Fortunately, because of the way we refinanced, we paid all of the PMI upfront, so we don’t have to worry about it again.

And now? Our house will be paid off right around the time our oldest goes to college! I don’t think there are many people that can say they purchased a house in their 20s and it will be paid off before they are 45!

That’s our plan and while it was a little crazy, we are so happy we did it. We are teaching our girls about budgeting, money and responsibility. And, the best way to teach them is by example.

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  1. That’s awesome! I’m loving these lower interest rates as we buy our next house!!

    1. Oh,’s a great time to buy…the selling, well, that depends on when you bought.

  2. grandma Pat says:

    I am proud of you both for taking on this great challenge. With so many people in huge credit card debt these days it’s great to see your family is not there. I also think teaching your children about finances at a young age is an even better idea. Everyone needs to learn to buget and wait for the things they want until they can afford them.

  3. Mr. Serious says:

    It’s hard to believe it’s been that long. I don’t worry, as much, about college about retirement saving because we’ve got a plan in place and we’re debt free. I think the biggest blessing to come of this is that you could get out of a job that was so draining. I get excited to think about the “family tree” effect.

  4. how funny is this? i don’t think i have ever seen the front of your house?? adorable friend!!

  5. Ours will be paid off in 12 years, and our mortgage is our only debt too! Yay for living within your means 🙂

    1. It really is a nice feeling. And, people finally have stopped looking at us (well, not really) like we are crazy when we say we aren’t going to buy something.

      So, a little less than 14 years!

  6. We are in a similar situation overall. Great feeling not to have any outstanding debt (besides the house).


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