Exciting news for the Prosser family!
Posted February 24, 2011 2:57 p.m. EST
Updated February 24, 2011 4:00 p.m. EST
We have exciting news! As of 11:00 am today we own a new home....well, not actually new - but new to us! We bought my dad's house in our same neighborhood as he was ready to downsize into a smaller condo. We get the garage, office and screened porch we have been wanting and he gets out of yardwork!
The reason I share this news with you is that we are able to make this move because of all the frugal living techniques we chat about every day here on this blog. I wanted to give you a real life example of what you can do with these savings. I am in no way bragging, so please don't take it that way. We have worked very hard for many years and gone without many luxuries that neighbors have (boats, newer cars, long vacations, home renovations, etc) to get to this point.
Because of the money we have saved over the last 11 years, we have been able to pay ahead on our current mortgage and only have 38 more months left on it before it is paid off. We intend to keep the current house and rent it out. Our expectation is that the new renters will pay close to our current payment, so we will use the rent from the renters help us pay it off. Once it is paid off in 38 months, the rent from the current house will then go towards the mortgage on the new house. We expect to continue making our payments on the new house as usual, even once the rent from the current house can be applied to the new house, so we expect to have the new house paid off quite early as well.
Keep in mind that we have no other debt other than the 2 mortgages, which also makes a big difference. And, because of the coupon and general frugal living savings, we were able to put down 20% on the new house to avoid PMI, making our monthly payment lower. Again, all of this is because of basic frugal living. Coming from a girl who never used a coupon at the grocery store before her first was born 11 years ago, if I can do this, anyone can!
Of course this means I will be spending some serious time packing, moving and fixing up the current house for future renters. Please excuse any late postings or general craziness in the next month as we make the big move. And if you know of anyone looking to rent a home in an awesome neighborhood in Johnston County (40/42 area with great schools 7 minutes from the house), let me know. In case you missed it, we are actually staying in the same neighborhood and just moving down one street, so you know we love our neighborhood and neighbors!
So, when you are cutting out those coupons and matching those sales each week thinking, "How much am I really saving?", remember that you could turn those savings into reaching some pretty exciting goals.
I'd love to hear the goals you are saving up for. Care to share?