Tuesday, July 18, 2006

Holy House Appraisal, Batman

As many of you are aware, I have been in the process of getting my house refinanced. This process is pretty straightforward and in layman's language, I am basically buying the house from myself and taking the profit to pay off debt. The whole thing depends on my house being appraised for more than I owe on it. The deal is made or broken on an unbiased person coming in to my house, looking around, taking measurements, comparing my house against similar houses in my neighborhood and tellingme what he/she thinks it's worth. If it appraises for not much more than I owe on it, the whole refinance cannot happen because there is not enough equity (the difference between what it's worth and what you owe) to off-set the cost to file the paperwork and fees. My whole financial future (and as an off-shoot, the preschool) hinged on this one thing: my house being valued significantly more than I owe. I just got off the phone with my mortgage person and, drumroll please!

It is worth almost $100,000 more than I owe.

Yes, that number is correct, you are not mis-reading it, I did not type too many zeros, my computer has not been infected by a virus that adds numbers randomly. HOLY CRAP! I was thinking that if it came in $30,000 more I would be in hog heaven...but with this amount!? I don't know what I am going to do with myself. This does not mean that I will take the whole $100,000 out. In fact, it would be very wise of me NOT to do so. However, this amount is way more than enough to pay off my car AND my student loan AND have a nice big fat chunk in the bank in savings or to invest.

As much of a pain as it has been to own a house (read: there is no landlord to call when things break/go wrong) that is 80 years old, it is the BEST THING I HAVE EVER DONE WITH MY MONEY! Seriously. I got into the Tacoma real estate market when prices were reasonable, and they have done nothing but skyrocket since. My house has almost doubled in value in three years. Man, when the Lord provides, He provides. I am doing the happy, happy dance over here right now and I cannot believe it. How in the world did I get so blessed?!!


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