In November we started looking at refinancing our house. We were paying PMI on our original loan but since our property value has increased in the five years we've been here if we refinanced we'd lose the PMI and we changed our mortgage to a 15 year. We closed on our new loan at the end of December and our house payment just changed a couple hundred dollars-- but in the long run we are paying so much less interest.
In November/December we also paid off AND closed all of our credit cards. I think we had ten card companies to call and cancel, several of which we had no idea existed from several years ago. That was a freeing moment when all those cards were paid off and closed and no longer lingering over our heads!!! I swear- since then we've probably gotten 2 or more credit card apps in the mail a day! NO THANK YOU!
We are kind of in a pay-off standstill right now until the baby comes. We want to make sure we have enough cash to pay for his birth and all of the medical expenses and then whatever is left we can throw at the debt after he's born. When the lady called to the give me the estimate of what we would owe- while it is A LOT of money- it didn't knock the wind out of me. I remember after we had Rhett, we had no idea how we were going to pay for it. They were going to make us take out a loan from a bank, we talked about borrowing money from family... and then they ended up letting us do payroll deduct since I worked at the hospital but it was a BIG, SCARY ordeal. This time, we'll be paying cash- as soon as the bills come- and we will move on. Financial Freedom.
It's great because we are making such positive steps and we FINALLY see the end in sight. We'll be saying GOOD-BYE to student loan payments in March, Lord willing... and then we'll just have the cars and our house to pay down. There is really no better feeling.
It's been a long journey. LOTS of ups and downs, but now that the end is in sight we feel like we are sprinting towards the finish line. 2017 should be the year that we are debt free other than our mortgage-- THAT blows me away.
I probably won't do another update until after Sawyer is born and we see how the dust settles. But I've had several emails from people asking what book I use and I HIGHLY recommend Dave Ramsey's Total Money Makeover as a good starting place!
More to come!