Just 3 Days to Go (Fingers Crossed)

I am so ready to be done with work - so, so ready - but I want to have more time to spend with the baby after she's here, so I'm still plugging along, heading into the office every day. This is hard, y'all!

Anyway, I was up in the middle of the night again last night, and contemplating something. Maybe you can settle this long-running disagreement between Aaron and I. Here it is:

Have you ever watched Extreme Makeover Home Edition? You may be able to help, even if you haven't. So on the show they tear down peoples' old, broken-down houses and put up new, huge, fancy houses. Most of these people don't have much money of their own, and likely still have a mortgage. Sometimes this mortgage is paid off for them, but not always.

Here's where the disagreement occurs. Aaron thinks that because of the new, improved status of their house, their mortgage payment is going to go up and they won't be able to afford their new house. I, on the other hand, think that the mortgage payment doesn't change at all. Why should it? They didn't borrow any more money to make the improvements. So what do you think? Does their house payment go up or stay the same?

(And of course, they may not be able to afford the house still if they have to pay taxes on their "winnings". I don't know how that part works.)


Jen said...
May 14, 2008 at 8:57 AM

I agree with you. Their mortgage payment would be based on the original amount of their loan, not on the current value of the house.

donna said...
May 14, 2008 at 10:06 AM

The actual amount of principal and interest on the loan wouldn't change but the taxes on the property would skyrocket once it goes through the regular appraisal process the next time that happens. There is a huge to-do about these shows and the HGTV Dream Home giveaway that the people end up worse off because they lose the homes for not being able to pay the tax bill, even when the house is technically paid for. You still have to pay property tax even when you have no mortgage.

You are a rock star for continuing to work. I gave it up two weeks before my baby was born and I'm not sure how I managed that long. Hang in!

L Sass said...
May 14, 2008 at 1:46 PM

The mortgage payment stays the same because they didn't borrow extra money. Their TAXES on the other hand, might be a different story.

audrey said...
May 14, 2008 at 6:00 PM

I agree that the mortgage stays the same but taxes likely go up. I have also heard that those "lucky" people often can't afford to pay for the utilities on their ginormous new houses.

carrster said...
May 14, 2008 at 10:10 PM

I thought for sure today was the day!! I will keep checking. Go you for working. :)

I think the mortgage stays the same but the taxes, like Donna says, skyrocket. Pooey. My cousin's family were finalists for that show but didn't get it - I guess then I would've gotten the low-down. It is a RIGOROUS selection process. Sheesh.

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