All Forum Posts by: John Woodington

@Steve Racicot, that is true.  Any home expenses would be a straight loss.  This home is in an association, so I don't have to cover roof/siding/exterior in any way, but water softener, furnace, appliances etc. are obviously all on me to maintain.

@Leland Barrow, I'm thinking of the math of this differently.  I'm considering the total cost to own this property free and clear.  Here's how I broke it down.

If I stick with the current 15-year mortgage:

• Interest paid over the life of the loan = $34,838
• Monthly Cashflow = -$100 (i.e. I pay an extra $18,000 over the life of the loan)
• Total non-Principle cost to own free and clear = $52,838

If I re-fi to a 30-year mortgage:

• Interest paid over the life of the loan = $118,838
• Monthly Cashflow = $100 (i.e. I earn an extra $36,000 over the life of the loan)
• Total non-Principle cost to own free and clear = $82,000

So in the end it costs $30K less to pay off the house if I stay with the current 15-year note, plus I cashflow the full monthly payment much sooner ( which is a big bonus for me, as this would be at about the time my son will enter college).

@Mike B., rent has been going up pretty quickly around here (North Minneapolis Metro), as have home prices.  I'm guessing I could get to that $1550/month rent number in the next couple of years, potentially.

I'm considering buying a new home and keeping my current house as a rental property. Last year I re-financed this current property into a 15 year fixed rate mortgage at 2.875%, which I love. Monthly expenses (PITI) are currently $1550. I know I can rent this house out for ~$1450. Obviously this means I will lose about $100 per month if I change nothing. But if I refi out to a new 30-year note, I can only save about $200 a month in P&I. This would allow me to cashflow (barely), but I would then lose the super low interest rate of my current 15-year mortgage. My gut tells me to keep the 15-year mortgage and try to fully pay off the property as fast as possible rather than refi out to a new 30-year mortgage so I can cashflow $100/month. In essence I feel like the loss of cashflow is worth the much faster equity I'm building in the property. Curious what other would do in this situation.

My brother removed the popcorn ceiling in his new house.  The premise is easy, but the execution is back/shoulder-breaking, and it makes a heck of a mess.  As long as clean-up is no issue, I think you should be fine.