Car Loan Paid Off…

I did it!!! I finally did it!!!

The pay off depleted most of my savings but it just made sense. I wasn’t earning nearly as much interest in my checking account as I was paying on the car loan, which was at approximately 5.6%. Next step will be to pay off my $25,000 home equity line and then all I will have in the way of debts is my first mortgage and my student loans.

Currently my home equity line of credit is at Prime + 2.5%, or 10.25%. The rate is so high because at the initial purchase, the loan to value was 100%. I’ve been rather lazy at refinancing the loan, which could give me an interest rate at Prime or even Subprime. I need to get on it! (Chitowngirl shakes her head) I don’t feel that bad about the home equity line because it is not debt that I acquired by personal spending. It was the result of an 80/20 mortgage, which is what I needed to buy my place at the time. My condo has appreciated approximately $20,000 since I bought it three years ago and I recently did some remodeling (I know…don’t blast me!!!) which cost me thousands to put in new wood floors, carpeting in three bedrooms, and to re-stain my kitchen cabinets as opposed to replacing them.

When I look back on it, I know I should have held off on the complete overhaul and just put down new carper. It had to be replaced. White carpet just does not work well in the City of Unpredictable Weather. Plus…I just told you… I am lazy about some things so I hardly ever took my shoes off right away. Now with the floors…I have no worries.

One more reason why I did the project was that I knew I would be in my place for a while to come. Why? I simply cannot afford anything else with the mounting student loans, no guaranteed higher paying position after school is over, and rising real estate prices and interest rates. So, I finally made it feel like home and I settled in for the long run…at least 5 years.

Chitowngirl does a little dance…Car loan…PAID!!!