Forty-something wife, mom, mother-in-law and grandma (aka Honey) in sunny ArizonaI wish SA allowed you to tag someone or reply directly to comments. I wanted to reply to all of you - thank you for your thoughts and feedback. I've loosely followed DR for years, and he's gotten us out of ever having to file bankruptcy and kept us out of the poor house. i đ snowballs - but we aren't 20 anymore. Good, bad or indifferent, we are WAY behind on our savings needs (sure, they probably be called goals - but at 45, I'd say they are needs!). If I wanted to go the slow, painful - yet fulfilling - method, I would. I've done it before, I can do it again. But I don't think time is on our side. Our life is so different from even three years ago. I am a grandma now. My parents are trying to buy a home, at their age, in this current market. I could go on and. on and still convince no one that this is what's right for us, right now. And that's okay. It's PERSONAL finance. I am here to be kept honest - and after we make our decision, I'll still need to be kept honest! 
If consolidate, our focus will move to paying down our new mortage and my student loans. While I would love to get some reprieve there (at least stop the crazy interest and let me pay the loan off!), I know it's my responsability. I've mocked out a budget through the remainder of the year. One example, we will go from saving $8 - 10K automatically in our Credit Unions to saving/investing a minim of $2500 a month (two personal escrow accounts, each of us will have an IRA and put $300 a month in that, invest $500 a month, and then continue to put that $8-10K away. And this doesn't count 401K contributions.
If we go the Refinance route - we will pay an additional $1500 a month towards principal... and pretend we have a 15 year mortgage. When interest rates come back down, we will refinance to a real 15 year.
All this to say, I've finished looking at our options and wanted to lay them out (more for my sake).
In all scenarios, I can pay more than comfortably pay $4500 a month towards the house.
Refi with existing mortgage company
Details: 5.62% rate, 30 year fixed conventional - payment $3098; will pay $1500 per month to principle
HELOC with CU
Details: variable, current 6%, interest only payments for 10 years (would be about $700 right now, but can seriously balloon); interest and principle for additional 20 years. Felt like if we go this route, I'd make the $700 plus $1300, PLUS $1500 each month and could pay it off way earlier!
HE Loan
Details: 6.99% 12 year fixed, payments will be about $1300
In any of the options, we are touching just a smidge of our equity. In fact, it's about the amount we used as our downpayment three years ago. I say this, because we aren't being greedy and we are not trying to touch the fake equity as I like to call it. We are touching the initial equity we had when we closed on the house.
Which ever option we choose, I am looking forward to getting so serious about savings and paying off the mortgage! AND closing all of those darn cards. 
More to come!
May 27th, 2022 at 05:56 pm 1653674194
I'm 48 and right there with you. I'm really trying to catch up and I have to do what's best for me and what gives me peace. I say follow your gut
May 27th, 2022 at 09:18 pm 1653686302
My concerns havenât been explicitly addressed here - not that you have to!
If you understand what got you into debt, and you are sure it wonât happen once you âpay offâ credit cards, then your plan might make sense. Certainly the ability to use retirement savings space every year is important - I am in favor of getting the tax benefit on traditional IRAs and 401k plans as long as you arenât also,paying 18% credit card interest to do that.
Student loans are a universal mess. On the plus side, you canât be forced into bankruptcy or foreclosure to pay them off. On the negative side, if you arenât paying enough each month to cover interest plus some principal, you are burying yourself.
If you have done a realistic budget, and cut up all but one credit card - and put that one someplace that requires work to get to it - then your plan could work for you.
I wouldnât count on mortgage rates going down again, and I would lick in a rate because I think they are going up. I remember them at 18% in the 80s so I am wary - I bought when they first dropped to 13 and my freinds and I were ecstatic!
Good luck with your plan!
May 28th, 2022 at 02:06 pm 1653746768
May 28th, 2022 at 04:19 pm 1653754756
May 28th, 2022 at 10:34 pm 1653777283
May 30th, 2022 at 02:50 pm 1653922203
I've read Dave Ramsey's stuff and he has great ideas, but one has to find what works for one's self. I agree, it probably is more like a need than goal as you get older to get savings built up. Well put.
June 2nd, 2022 at 07:29 pm 1654198150
This will also determine if you have changed your ways. If you have then in 2 years if rates are lower you can refinance. If rates are higher and you've paid off nothing at least you've saved your house.
I am currently in an ARM. We are still way below where I would need to be to lose money on my 2% arm. I am capped out as well at 7% so I'm not worried. I have 6 more years of 2% and then I have another 3 years until I hit 7% . So Arms are not the problem.
So that is something to consider both in the refinance now and in 2 years. What rates are arms? If you are going to refinance again does a 15 or 30 year make sense?