Fumbling Toward Insolvency, The Terms Are In

Met with the 203k approved loan provider. It's a re-finance with the repairs included at 97% of the value of the home at the end of the loan term. 

The interest rate, HUD backed, is roughly 6-7% which is 2-3% higher than my current 15-year mortgage. Tack on $7K in closing costs and roll it into 30 years and holy crap that's a lot of interest to pay for home repairs. 

I've got a home equity LOC at almost 10% that will cover some of the repairs and can do some credit card dancing for the next few years but that will destroy by debt ratio and my credit score with it and will tack on extra balance transfer fees as I shuffle the balances around though that will be far less than the interest I'll be paying. 

This is a pretty major decision as it will put all future large purchases to a grinding halt and will throw a car lease ending in March will add even more pain. 

For someone who doesn't care about 'stuff' how did I end up here? I have some answers but not all of them. 

The root cause has to do with decisions made in weakness or out of lack or because it's what I thought we are supposed to do rather than a well thought out plan.

The journey continues...