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Posts tagged with: Home Ownership

Home Ownership: 1 Month Status

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We’ve now been in our new-to-us (1980s) house for just over a month. I haven’t talked much about the house since we closed, so I wanted to talk about some of the financials in the past month of home ownership.

Monthly Bills

The house is larger than our last home so although it’s too soon to tell true differences in heating and cooling costs, my guess is our new house will be a little more expensive on average. Relatedly, our home is now 100% electric (no natural gas) so that’s a bill we’ll be eliminating from our monthly budget. Our trash is now paid quarterly instead of monthly and even though we’re now receiving more service (our neighborhood does twice weekly trash pick-ups), our overall cost is actually less. We do, however, have HOA fees to pay.

Overall, our monthly bills will probably be a little bit higher than in our previous home.

One-Time/Set-Up Costs

The hidden costs of home-ownership! We knew when we bought the house we would have to purchase a refrigerator (we got ours at a great Black Friday deal because Lowes did their “Black Friday” prices for the entire month of November! Great time to buy a home!). What we had NOT realized until we moved in was that not a single window had any blinds on it. Not one. I’ve never bought blinds before. Even going the DIY-install/Home Depot purchase route, we still ended up paying over $1,000 on blinds! We also ended up needing a few smaller items (e.g., one extra bathroom = one extra trashcan, extra hand-towel set, etc.). We also bought 3 ceiling fans for rooms where they were not present (the living room + 2 bedrooms). The bedrooms were already pre-wired (but just had metal plates affixed to cover the wires), so hubs was able to install those on his own. But we had to hire an electrician to wire the living room because, living in Arizona, we HAVE to have a fan in the living room and it hadn’t been wired for one so that work needed to be done.

A great majority the walls in the house are bare. Some of the rooms, even, are bare. But I’m okay with that for now. I’m in no hurry to rush out and spend a lot more $$$ to decorate and furnish the entire home. We’re comfortable with what we’ve got and I prefer spending some time in the house to try to find a design style, etc. and to slowly build up decorative pieces vs. going to the nearest Home Goods and buying all.the.things. just for the sake of having everything immediately decorated.

All things included, we ended up spending nearly $4,000 for one-time/set-up costs (the “big ticket” items were the blinds, refrigerator, and fans/electrical wiring). Luckily, we’d been building up a stash of money for the downpayment and an extra slush fund so we had the cash on hand for these expenses. I’m thankful to YOU readers because I’d initially wanted to make a larger down payment (leaving us with less cash-on-hand), but many of you had commented that we really needed to have a good cash reserve when buying the house for just this type of situation. Having a later-than-expected closing date helped in that regard, too, because we had extra time to save the money up.

Mortgage

Our rent at our old house was $1200/month. Our current house has a mortgage payment of $950/month. When we set up the auto debit, however, we also asked for an additional $300/month to be applied toward principal. That will take our monthly payment to $1250/month. We can always change or amend the extra/surplus payment, but that’s how we’ve set it up to start. I thought it would be a nice way to build some equity in right from the start, without really “hurting” us since it’s comparable to the payment we’re already used to making.

Not having a mortgage payment due in the month of December was the greatest thing ever!! We ended up having extra money to put toward our debt payment (debt update coming Monday that I’m super excited about!!!).

So that’s how home ownership has impacted our finances on an immediate basis (i.e., initial one-time costs) and for the foreseeable future (i.e., monthly bills). Before we’d ever started house shopping I was hoping to find a place that would be somewhat similar in costs to our current standard-of-living. I didn’t want our expenses to all the sudden sky rocket. And I’m happy with our home. Although, yes, it will likely cost a bit more than our old place, it’s not so much more that it will slow down debt repayment. We won’t be “house poor” by any means. And we always have that $300 buffer on our monthly mortgage – if we find we need a little more wiggle room in the budget we can always make that auto-pay adjustment.

I’m busy baking today with the kiddos and getting laundry done and suitcases packed for our upcoming trip. I hope you all have a very Merry Christmas or Happy Holidays and I’ll see you on the other side from Texas! : )

Happy Holidays, y’all!


We Bought A House!!!!!

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We did it!

After endless back-and-forth negotiations, a variety of snags and snafus, and having to change our closing date not once but TWICE, we are officially home owners! YAY!!!!!

 

KONICA MINOLTA DIGITAL CAMERA

Image source. Note – this is an image that came up in a search of “Arizona houses.” This is NOT our house. As I said before, I won’t be showing a picture of our actual house.

 

We actually closed about a week ago. It was nice because it was a couple days before our 6th wedding anniversary, so we joked that this year for our anniversary we bought ourselves a house! Lol! Go big or go home, right? : )

Shout out to our families who have been so helpful! My Mom helped us with a portion of our down payment and both of our moms have been here recently (first hubs’ mom came out, then my mom) so they have helped with packing, entertaining the girls, and getting everything ready for the move. Hubs has also done a ton. Funny story – this isn’t the first time that the bulk of moving duties have fallen to him. At least twice before I’ve been gone/out of town during moves. I have left with things in disarray and returned with everything moved into a new space! Ha! This time I wasn’t entirely absent (I haven’t gone out of town), but I’ve been pretty busy with work so hubs has definitely taken the lion’s share of packing and boxing and moving. He started with cleaning and moving pretty much immediately after closing but it didn’t become official (aka: we didn’t sleep in the new house) until this weekend. Now I can’t wait to get out the holiday decorations and go to town! : )

This is random but….does anyone remember this ancient blog post? The post (almost 2 years old at this point) was about the thought of having hubs get a vasectomy. GUESS WHAT’S HAPPENING TOMORROW, Y’ALL!!!!!!!!!! ((insert giant grin here))

Sorry, let me try to contain my excitement (hehehe!)

Poor hubs – he’s not so excited. What a way to be rewarded for all of his hard work in the past week! But I, on the other hand, could not be more thrilled!!! We’ve known that we are done having kids for awhile, but having the little snip-snip is the last thing to make it really super-duper official and I can’t wait! I’m taking off early tomorrow so I can drive him to the appointment, as he’s got a prescription sedative to help him relax and he’s not supposed to drive on it (for a man whose usually cool as a cucumber, he’s pretty anxious over the whole thing). Then back to business as usual.

I’m really looking forward to the end of the semester! I feel like such good things are on the horizon – new house, hubs starting back to school, a new year, etc. It just feels like a fresh start or a re-set of some sort. Not that this year has been bad (in fact, there’s been a lot of good), but I did call summer 2016 the summer of death and I’m excited to see what new adventures lie ahead for us as a family.

On the financial front – I may have lied. I said I was going to refinance my student loans THE SECOND that the house deal went through. But now that I’ve been thinking about it, I’m not so sure. I still have 9 months left of interest-forgiveness for my subsidized student loans (through IBR), so now I’m thinking I might only consolidate the unsubsidized loans and leave the subsidized ones for the time being so I can get all 9-months worth of interest-forgiveness before I throw them into the consolidation? However, I have issues with Navient every time I turn around, so I’d love to rid them from my life. In the end, I think I’ll do nothing this month. Over the winter break I’ll start my investigation into student loan consolidations/interest rates/etc. and probably make a more concrete decision before the end of the year (because that will greatly impact our financial goals for 2017).

Anywho, I gotta jump back into work! I hope your Mondays are off to a good start (look at me actually blogging on a Monday – pat on my back) ; )

Talk soon!

~A


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