Second Mortgage taken out in September 2007: $33,000

We are currently snowballing this debt. A running update on our progress can be found here.

***Post written October 2010***

We bought our house in Ohio in 2007 after moving back Stateside from Italy. We love our house, but if we had to do it over again, I’m not sure I could justify taking out a second mortgage to buy it. We only had enough cash to put 5% down, so the Second covered the remaining 15% of the purchase price.

I never want to be in this much debt again, even for a house.

When my husband was first assigned to Wright-Patterson AFB in Ohio, it was to be for at least four years — possibly more. After all, Wright-Patt is a large base; if we liked it here we thought he could put in for another assignment at the same base (a PCA) that wouldn’t require us to actually move (PCS).

At least, that was our thinking when we bought this house.

Instead, my husband was picked up for a program that required him to go to school — in California. This is great for his career, but not so great when you own a home in Ohio during the worst down-turn in real estate in decades!

As of this writing in October 2010, our house has been for sale for six months, and my husband is preparing to PCS to California — without me and the kids. We will join him in California when the house sells — or at the end of the school year, whichever comes first.

The interest rate on this second mortgage was not great: 8.34%. In September and October of 2010 I paid off the remaining balance of about $30,600 by transferring it to two different credit card offers of 0% APR for one year. The total fee for these transfers was just $75, which is about ten days’ worth of interest that the original second mortgage was costing us.

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