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Our new loan

October 12th, 2015 at 07:51 am

We were approved for the new loan on Thursday, and I returned the signed paperwork on Friday. Our new loan is $38,000, and will be used to pay off my Aunt and my mother and father-in-law for loans they made to us to renovate our house several years ago.

I wanted to clear up one thing that, according to a comment I received on my previous post may not have been clear - We have been paying both my Aunt and my in-laws with monthly installments of $500 and $600 respectively. We will use this loan to eventually pay them off completely.

DW suggested we pay my aunt, rather than her parents first. It makes no difference to me, so we'll do that. Our Oct. 14 payoff to my aunt is $12,273.04. The check is written, and will be mailed once I receive confirmation that the money is available. Columbus Day is throwing things off. Once we receive the final bid for the roof and siding on the barn, we'll make a payment to my in-laws. Depending on what the bid is, I think I can make a payment to them of about $10,000. We're waiting for an Amish crew to return the bid for the roof and siding, and they don't return bids as quickly as "English" crews, but their work is cheaper.

Someone else asked through a comment on here whether this is a HELOC or not. It is a HELOC right now, and can be for up to a year, with only quarterly interest payments due. After a year, or whenever we decide within that year, we'll amortize it for five years.

During that time, of course, we'll continue to make monthly payment to my in-laws. So, I might just wait to amortize the new loan until the entirety of their old loan will fit in. It depends on the final cost of the barn renovation, but I think I can do that by next March or so. We'll see.

It does feel good to be able to 1). pay off my aunt, 2.) make a significant payment to my in-laws, and 3.) get moving on this barn renovation.

The guy we're hiring to do most of the work on the inside also runs a lawn care business, so he said he'll be busy with that until the end of October. The water line out to the barn and hydrant can be done as soon as the plumber can fit us in.

1 Responses to “Our new loan”

  1. rob62521 Says:

    Hope the renovations go smoothly. Maybe by the time you get it finished, the photos will show up correctly on this site. I'd like to see the finished product.

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