Tuesday, April 26, 2016

We're in debt!

We closed on our house. As I said before, we are electing to use a VA loan and were able to get a rate of 3.375%.

Right now, I don't have plans to pay this down aggressively. We definitely need to let the dust settle as we get moved into the new place and get our life started in Florida.

More to come!

Saturday, April 16, 2016

House Closing

After a lot of paperwork, it's looking like we will close on the house in the next ten days.

We are purchasing our home using a VA loan. In order to decrease the funding fee, we are putting 5% down. With the closing costs, fees, and down payment we will be writing a check for just over $16,000. If you have a disability rating from the VA, you are exempt from paying the funding fee. I've seen a few bits of information suggesting you can get the funding fee back if you have made a disability claim prior to closing and your claim is approved. The husband will likely get some sort of disability, so I will investigate whether we are eligible for a refund.

We looked at doing VA, FHA and conventional loans, but we determined that VA would be the best deal. Even after the funding fee, the interest rate was lower, and we wouldn't have to pay Private Mortgage Insurance (PMI). We locked in a rate of 3.375% for 30 years.

Now, we'd like to have our mortgage paid off before we quit working (about 10 years from now, possibly less). We decided to go with the 30 year because it gives us flexibility right now. I would like to invest our income in mutual funds rather than paying extra on our mortgage. I've decided we will utilize all our tax sheltered accounts before paying extra on our mortgage. Even though the hubs makes a good salary, after maxing a 403b, 457, HSA, and two IRAs, things are going to be tight--for now anyway. He will eventually make more, and that's probably when we'll start paying extra on the mortgage. I haven't decided yet. But for now, we need to separate ourselves from military life, get moved, and move into the new house.

Sunday, April 10, 2016

Still in Limbo

The husband finished his job last month, but that doesn't mean the military is cutting him loose. Right now, he goes to PT formation and comes home--often for the day. There aren't enough jobs for the number of people in the military. Some people are currently doing nothing. We're trying to figure out if there's some way for the military to cut the husband loose, but we've come up empty handed. Most people have no clue what to do. I'm mentally prepared to wait the full time until his terminal leave begins (in July), but it would certainly be great if we were able to leave earlier. The waiting is boring, but at least we are getting our money's worth with our Netflix subscription.

We are supposed to close on our house in a little over two weeks. I've worked out to do the closing by mail, so fortunately I don't have to return to Florida right now.

The house we're buying needs a bit of work. Mainly, it needs a new roof, and it needs one right away. I have someone lined up to do the work, but we don't have a date set yet. The roof is going to cost us $10,000--not huge money, but I need to make sure we have cash on hand to cover it. We will eventually do other work, but the roof is the most pressing item.