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Rental Refi Did Not Work

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I am kind of disappointed this morning since I found out yesterday that the refinance on the rental homes would not work.  Apparently, my credit score is not good enough.  Ever since 2008, it has been incredibly difficult to get credit so I will be focusing on getting out of debt instead.

Ultimately, it turns out that the net impact on the monthly cash flow won’t be all that different without the refinance.  That is because I had to have 2 appraisals and one came in below the expected amount.  As a result, I had set aside $10,000 to bring to closing in order to save about $650-$700 per month through decreased payments.

Now that the refinance won’t be going through, I will using that money to pay down a credit card balance in order to save over $2300 per year in interest.  Once I get this card paid off which should be in the next few months, I will save almost $800 per month in cash flow which can be added back into the budget.  So all is not lost with plan B.

Plan C

Then once that card is paid off and I get a little more credit card debt eliminated, my credit score may very well be in a better place that I could refi the rental houses, decrease my interest rate and my term.  I don’t anticipate rates moving up any time soon.  I would think that I have a year or more to get a better interest rate.

If not and rates start to increase, that would mean that the economy is heating up which will only help my retirement account investments in the stock market.  So I look at it as a win-win.

With this behind me for the time being, I can now focus on getting the business transaction complete and meeting my 2 goals for this year which are losing weight and paying off debt.  In fact, I am about to launch a blog solely devoted to working my way out of debt which should bring some increased accountability and motivation to the equation.

I will let you know when it is up and running.

 

Carnivals

Here are the recent carnivals that have included articles from my blogs:

Thanks for reading and I look forward to nailing this debt over the next few years.

 

 

 

 

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