On the house front we are pretty sure renovation is our plan. We have our estimates and most of the money. Now many people would disagree about how we are handling this, but it really does make sense in the long run. We basically had two options sell and buy a bigger house or work with the one we have.
Sell and buy a bigger house-This option is not possible today because we don't have the equity to get out of our current house or the 5% down to buy something new. It would cost us a lot. We could wait a couple more years, save the down payment and hopefully walk away from the house without a lot of out of pocket costs. Houses here are pricey and it kills me to walk away from what we have after paying a mortgage for so long.
There are a lot of people in our "bought at a lousy time no equity boat". Because of this there are many unsecured home improvement loans available. We were able to secure two of them. This will allow us to build two bedrooms and a full bathroom on the second floor of our home. I know, many people would scream "don't take on that debt" but keep listening before you yell at me.
We refinanced last year and only have fourteen years left on our mortgage. These loans will be paid back and the mortgage will be paid in less than fifteen years. If we buy a new house we would probably have to take out a thirty year mortgage, but we can't even do that for a few more years. The renovation will give the kids their own bedroom and open up their current room as den/office/family room. We will still have a crazy small kitchen, but we will deal with that down the road. Once we catch up we will have some equity to expand our kitchen. That is down the road at least seven or eight years. We also love our neighborhood and our yard.
It is tight right now with the loan payments, especially while our childcare costs are so high. June will be the end of high end child care costs since everyone will be in school full-time next fall. So cutting the grocery budget will help a lot!
So the bottom line is I am going homemade baby. I made yogurt last night, and I am working on homemade hamburger buns right now. I do work full-time, but cooking for me is an outlet that I really enjoy. Also we had a really exciting snow day today, so I have some extra time.
I will share my success or failure with my yogurt and buns later today.