As you probably know I've been busy these last four weeks, since my return from my first ever several month RV adventure, working on such diverse activities as: budget / investment organization and planning, house cleaning and maintenance after two years total of being away, home refinancing to allow for future adventures, studying the benefits / negatives of updating Daphne Dolphin vs buying a newer, more oomph, somewhat larger RV. Gradually things become clearer and some decisions and changes have been made.
This morning I received two possibilities for refinancing my home. Even though I've been involved in many home purchases in the course of my marriage, this will be the first time I will have refinanced a home on my own. In a nutshell, the two possibilities are:
1) A conventional loan that lowers my interest rate by a full percentage point lowering my monthly payment by about $250 - with no closing costs.
2) An FHA loan that also lowers my interest rate by a full percentage point but actually increases my monthly payment by about $100 and has fairly substantial closing costs. However, it also includes a very tidy number of dollars that I could use to buy a newer / nicer RV and still have a goodly amount of money left over for savings.
When I rent the house I'm told, by my realtor friend, that I can expect to collect rent that would cover the increased house payment. Do I want to do that? I haven't decided whether I want to fix Daphne Dolphin or buy something new. I do know that I love the RV lifestyle; at least for a reasonable amount of time, I plan to RV in the future. But, might I also like to adventure without the RV from time to time? I think so. If I decide to trade Daphne for a newer (more costly) RV and I went the conventional route, I'd probably have to take money out of my retirement saving investments or make monthly payments to cover the difference between what I get for Daphne and the cost of a new RV. Would it be better to leave the equity in the bank, with lower monthly house payments and the possibility of having to procure a finance arrangement for a newer RV?
I'd love to get your input. Happy Wednesday, friends.
PS: I've decided that I don't want to sell the house even though it may turn out that I never live in it again. The market is just starting to get a little on track here and I think it behooves me to hold on to it for now.