obsessed/now considering cheaper house

Avatar for colomom99
iVillage Member
Registered: 03-28-2003
obsessed/now considering cheaper house
1
Mon, 02-07-2005 - 2:18pm

Hello! Happy MOnday. I have been posting pretty regularly lately about my progress and slip-ups in trying to get our debt and spending under control. I am currenlty paying down about $30K in credit card debt not including first and second mortgage. I get really enthusiastic about it and have made some real progress but you know how it goes. I put too much towards bills and then something pops up and then I'm broke again. Working on that emergency fund, not there, yet.

Anyway, we live in a nice house that we have been renovating in a very pricey neighborhood. We bought the house knowing it was too small but bought it anyway for the location, figuring we would make money off it eventually. And, in fact, the last appraisal shows that with the addition we put on and the renovation we've done it has appreciated even more than we have sunk into it. But the payments are pretty steep, esp. on the second mortgage which is a variable rate and the rates just keep going up every month.

My question is: would it make sense to sell it and find something cheaper in a good but not so pricey neighborhood? Selling a house and moving is a giant pain and can be pretty expensive in itself. BUT I wonder how smart it is for us to stick it out here and strain every month? A year ago I wouldn't even think about it but these days I am so obsessed with managing money better I am looking at every angle. Any thoughts? Jenny

Avatar for cl_phocid
iVillage Member
Registered: 03-26-2003
Mon, 02-07-2005 - 2:25pm
DH and I did it a year and a half ago, and we have never looked back with even an ounce of regret!

All my best,
Danni