Let me start off by saying that thus far, I'm falling woefully short of the two hours per day on design ideas that I'd contemplated spending at the beginning of this week.
This evening, I started looking at what my mortgage payments might be like.
I currently owe $441K on the Landana property @ 3.5%. I just refinanced in February so I could take out $300K in equity to put towards the Vashon house. My payments are $2,650/month or so, but I round up to $3K and pay down additional principal. I'm projecting that the mortgage will be paid off after about 20 years - in 2042.
Rates have gone down since I refinanced. If I were to borrow today, I could get a 3% loan. When I project that out based on some prepayments, it looks like I could pay the mortgage off 1.5 years sooner - not a tremendous savings. Based on that, plus what it would cost to do the actual refi, I'm going to remain with the status quo.
Next, I looked at a $300K loan on the Vashon property at, say, 3.5%. those payments would be about $1,500/month - $18K annually. That means I'd have to increase my annual withdrawals from my 401(k) by about $20K.
Based on my current investments, that's well within the range I could afford. At present, I'm withdrawing $60K annually. I could afford (based on 4% withdrawals) to pull $100K annually. If I got a $300K loan at 3%, I'd need to pull $80K annually.
Whew. No one told me there would be math. I hope I'm not putting the decimal point in the wrong place. It would suck if I actually need $800K annually or something...time will tell, I guess.
Here's the amortization schedule calculator I started off with.
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