The Magic Number

Long story short, we have 2 mortgages. We are in the process of combining them into 1. Somehow even though we asked for and were led to believe we were getting a fixed rate on our home when we bought 5 years ago, we have recently learned that it magically turns into an ARM with our May payment. (Sneaky rat-fink bankers.) Yeah, I know, our fault because as it turns out, it was all spelled out in the dozens of papers we signed at closing. Mortgage #2 balloons in March and payment in full is required at that time. This we did know all along. That is what started us on this process in the first place because we simply do not have the money necessary to pay off 20% of our home. So we're combining 2 into 1 at a fixed rate (at least we've been told;). We've been approved, the rate is great, we're scheduled to close in a month. Smooth sailing all the way. Except (because there always is) we have to have an appraisal. And our house has to appraise for X amount of money. Doh!!! If said appraisal comes in higher than X we are good to go all the way to closing. If it comes in under than X, we're out $500 and well, we'll probably be homeless within a couple of months.

See why X is the magic number? Normally after 5 years in a home with multiple renovations and improvements worrying about an appraisal wouldn't be an issue. But this economy isn't normal, especially in our neighborhood. When the housing bubble burst a year or so ago it left splatters all over our neighborhood. At least 3 homes have been foreclosed on in the past year, 2 of which you can see from our front door. And then the banks sold them uber cheap to be rid of them. Beautiful.

Appraisal lady called Tuesday to set up an appointment for Wednesday. I was slightly panicked as this gave me less than 24 hours to figure out how to make my home look good enough to hit this magic number. In the end I realized that a freshly mopped kitchen floor was not going to increase the market value of my home. So I didn't. I didn't wash fingerprints off windows and I didn't dust (except the master bedroom which was looking a little fuzzy). I vacuumed and made the beds and prayed for the best.

Now we are playing the waiting game. We were told by the bank that it is taking upwards of 3 weeks for appraisals to be processed at this time. 3 weeks before we know the magic number.