Y and I had a heart to heart last night about our finances and wanting to build our house. We have about 61K that is liquid cash as of right now. We agreed that we would put 43K down on our mortgage. The current balance is just over 86K so that will pay it in half.
We decided that we've gotten too used to having a big safety net and our spending has increased accordingly. That's not what we want because we really want to build our house in the spring of 2013. We need to pay off our mortgage because we will have to refinance anyway and get a construction loan to build. Our original plan was to keep our mortgage and increase our cash so Y could build most of the house himself. We decided to just hire it done and get a construction loan. That way it is done in a timely manner and we don't need to stress about building it. I think that this way will be much better for our marriage :)
It's a little nerve-wracking to decrease our savings by so much but we need to cut our spending and I think that having a goal of paying off our mortgage ASAP will do it.
I haven't made the huge payment yet. I decided to wait a few days to think on our decision. Also, I need to move the money out of ING and that will take a few days.