Our house is on the market. Once we sell, we’re moving to an apartment. You might ask “Why would you own a home for nine years….only to become renters again?”
The simple answer is “Because we have NO other choice..”. When we bought in 2005, banks wrote shorter-term loans that would come due in full after 10 years. 80/20 loan is the financial lingo for this. In 2005, this got us into a house quickly with little or no cash down. Yes, we had cash but it was better spent on furniture, washers, dryers, drapes and dimmer switches.
It was a chance to avoid higher rent on our current apartment, a chance to be in a nicer neighborhood and a chance at a better lifestyle. After all, it was just a “starter home” and we could always re-finance or sell in five to seven years. In short, just two young kids who wanted a piece of the American Dream. Looking back, we couldn’t have been more foolish.
What about re financing? Believe me. I tried. I knew this was coming so I watched as rates dropped in 2013 and began contacting our lenders. Banks, Credit Unions, LendingTree, Quicken Loans. HARP 1.0, 2.0, etc. The main concern was (and still is) loan-to-value ratio. Prices were recovering but not anywhere near what we hoped and not to a point where a bank would re-fi. We are not alone. This country is only beginning to reel from consequences of the housing crisis and ours is one of many stories like this.
While it will be good to move somewhere new, I can’t help but feeling like a failure and a letdown to my family. The middle-class mentality says you buy a starter home and then move to a newer/bigger/better house. We never wanted a 5 bedroom mansion. Just a modest house that fit our needs.
Even if God made a way for us to stay in this house, neither my wife or I have the desire to do so. Its a starter house and always will be. Yes, we’ve had our talks of improving the bathroom, the kitchen, the backyard. But, as John Lennon said “Life is what happens while you’re busy making other plans…” There was the furnace that died, the roof that needed replacement, the basement with water issues….the list goes on. We made the investment where it was needed most. We tried our level best to be good stewards of this resource.
In one scenario, we envisioned an add-on to the back of the house, a bigger garage...a better version of the home we started with. But...let’s face it: Options to improve are limited in a house this size. Built in the 1940’s with concrete -- its a solid construction. Made to last. Filled with character. I’d hate to ruin that by hiring a random contractor only to have them supply cheap, flimsy Menards lumber and drywall. Then it’ll be like every other cookie-cutter, stick-built house in the suburbs. The homes you see advertised on billboards on the outskirts of town. The billboards that make renters feel guilty for “throwing away money…” when they could be living in a subdivision with dirt yards (grass? Oh, that costs extra...), sidewalks under construction and trees that only our great-grandchildren will be able to appreciate and rake the leaves from. You know...the homes that made Allen Edwin a millionaire.
The homes that seem to get bigger each day. The homes that are SO poorly built that it doesn’t take more than a 30MPH wind gust to remove vinyl siding and toss your roof shingles into the next ZIP code. Is THIS the American dream?
Will we buy another home someday?
You need 10-20% MINIMUM down payment for real estate financing. Remember the days where you sold your first house and there was equity leftover for your next house? Remember the days before Obamacare and other inflation busters when the average family could actually afford to save up such a down payment? Those days are pretty much gone. We have greed to thank for this. Greedy banks and greedy middle-men that play games of skyrocketing fees, excessive commissions and other fleecing tactics with hard working Americans. We even have our own greed to blame. I drive by massive homes and wonder what kind of jobs and incomes are behind the excess. Is this what they call the American dream?
In some ways, I see this step as a victory. Saying “NO” to engagements with big-name banks and a refusal to be chained to a 15-30 year debt. Not having a mortgage means I plan to pull ALL business with these institutions. They stood idle when a long-time customer in good standing needed help. Why should I help them?
What will we miss?
We will miss living in a small town where you know your neighbors and chat with them, whether they live next to you or a few doors away.
We’ll miss a place where you don’t have to worry about locking your door while out on an evening walk.
We’ll miss “neighbors helping neighbors” like an older guy our street who would randomly plow out driveway entrances on the harshest of winter days.
We’ll miss being able to walk downtown to enjoy the library, ice cream, dinner out or a stop by the hardware store for quick supplies.
We’ll miss the frequent opportunity to keep dollars in the pockets of hard-working, local folks as opposed to the slack, greedy corporate CEO.
We’ll miss the local Memorial Day parade where we honor our nation’s best. Our military heroes, police and firefighters. Those that make our quiet town a safe place - free from the worries of terrorists, thugs and thieves.
We'll miss the local community hospital, where our daughter was born and where I worked for a period of time.
We’ll miss the laid-back Sunday afternoons where the town folks choose worship, family and sabbath over selfishness, busyness and progress.
My wife hates country music but I'll make one short, late edit to sum up our feelings of loss. Jason Aldean put it best......"It sure left its mark on us...we sure left our mark on it....we laid a lot of memories down....like tatoos on this town..."
At the end of all this, we remain blessed. Blessed to have had a chance to enjoy life in this great town for the past several years. Blessed to have our jobs, our health, our families. That is what matters most.
