Tuesday, April 28, 2009

I live in a land called dilema

By nature I'm a bit of a worrier. I'm also really indecisive when there isn't an option that fully fits within my guidelines. So in the time that I haven't been spending like a mad woman (for work) and writing requests for more funding I've been going over and over 2 big decisions.

A) Landscaping. We have to get it done because we are that house that is bringing down the block at the moment. The options are xeriscaping, which requires less water (aka earth friendly) and less mowing (husband friendly) but costs money. An amount that I pretty much think is ridiculous. Then there's re-sodding. Increased water usage. Having to mow. $2,500 cheaper. So my environmental side and my wallet are at odds with each other. Saving up over the next few months is not an option because of the HOA, that and we don't want our neighbors to hate us. Gameboy is heavily leaning towards xeriscaping. I like the idea in theory, but not the money.

Then there's the landscaper thing. Guy A came out, measured, did a drawing and gave a quote. Gameboy sent the quote to Guy B (a friend of a friend), asking if it was a reasonable quote. Guy B sent a counter quote that's $1,000. I have a bit of an ethical dilemma because his quote is based on Guy A's original work/design/planning. We're still in discussions about this.

B) Refinancing. We could drop our rate 1.5%, but it will cost 7K to do so. We would have to move at warped speed (something that makes me cringe) because of changes coming May 1. The loan officer said she could get our house appraised $10K higher than our purchase appraisal. Our appraiser friend thinks we're down $5-15K. So loan officer lady is saying she could get an appraiser to appraise higher than we think our house is worth and higher than our friend thinks our house is worth. But we have to pay $350 out of pocket for this pipe dream.

The refi, based on the high appraisal, would cut the $70 we pay in PMI. There would be an additional reduction of $140 ($210 total). What we owe the mortgage company would only be $155 less because we currently save/pay for our insurance on our own and that would no longer be an option.

Thoughts?

1 comment:

Fabulously Broke said...

$7350 / $210 = 35 months

It would take 2.91 years to recoup that $7k bill to refinance. Just decide if it's worth it to pay up front.

In a savings account, you'd earn $210 over the 3 years at 3% interest compounded yearly.