| This month we decided to proceed on yet another refinance on our primary residence. Even though the financial geek in me has a hard time taking the shorter-term money at these ultra-cheap rates, we decided to "lock in" a 15 year mortgage at 2.625%. It is absolutely amazing that someone will let you use money for 15 years at this rate but it is indeed a sign of the times. While it was soooo tempting to stick with the 30 year money, the forced debt paydown on our primary residence is more in line with our 5-10 year goals. This should create the opportunity for us to have some solid equity available when we make our next home move, tentatively scheduled for 2016-2019.
Our focus on future cash flow continues to guide most of my financial decisions. By setting the focus on a particular point in time that is far out in the future (age 45) it has the effect of acting as a real motivator. Things continue to line up that will hopefully allow me to have enough passive income to cover all our living expenses and create a different dynamic for our family. Setting this goal is SO much more motivating than trying to set some arbitrary net worth goal that may or may not create the kind of life that we seek.
Here's a breakdown of our mortgages:
Primary = 15 year, 2.625% fixed, 15 years left
Rental #1 = 15 year, 3.875% fixed, 14 years remaining
Rental #2 = 30 year, 4.75% fixed, 29 years remaining
Rental #3 = 15 year, 3.875% fixed, 14 years remaining
Rental #4 = 30 year, 5.125% fixed, 26 years remaining
Rental #5 = 15 year, 5.50% 2/1 ARM with caps, 14 years remaining
Rental #6 = 15 year, 4.75% 3 year balloon, 14 years remaining
Debt-to-Asset ratio = 64.08%
Legend:
"Stocks" = Vested balance in company stock
"Annuities" = Investment Property Savings (minus security deposits)
"Other Assets" = Health Savings Account
"Other Real Estate" = Investment Properties (current market values)
"Other Mortgage" = Investment Property Mortgages
"Other Debts" = Hard money loan for rental property rehab |