It’s been a somewhat productive afternoon. After calling the heating contractor and hearing the cost estimate, I finally was spurred to start the process of something I should have done several months ago but, unfortunately, procrastinated: refinance my condo. I’ve missed the incredibly low rates of just a couple months ago, but the rates are still good, still better than my current ARM, and with the equity I’ve built over the past seven years I’ll be able to stop paying PMI each month.
So I’m planning to refinance and take cash out. I can use the cash to pay for the new heat pump and to finance my new car significantly if not entirely, and I’ll be able to deduct the interest. That will also reduce my car payment to nothing or nearly that, and I can use the difference to fund a higher mortgage payment, meaning I can refinance to a 15-year loan and save a lot in interest over the lifetime of the mortgage.
I’ve got a phone appointment with a loan officer this evening once I’m home from work. I’m really excited about finally moving on this, and having the cash to take care of these big ticket items without depleting my savings and cash-on-hand. I may just treat myself to an iPod after all.