I thought it would be fitting to give a brief year-end report on our house loan repayments. “Fitting” not because this is the sort of thing that is usually published publicly, but because our churchfunding activities were also unusually public. What an adventure this has been! We want to honor God again for providing for all our needs through the kindness of so many people!
(Here is the post that officially launched this churchfunding adventure.)
Since I am an English literature major and not an accountant, I will give my report in prose instead of a spreadsheet. But rest assured, we do indeed have spreadsheets to keep track of the data. 🙂
We purchased our house on March 25, paying the seller in full immediately, thanks to loans and gifts from nearly 90 individuals or families. About 70 of those were loans.
At the time we purchased the house, we owed a total of $66,162.50. As of the end of 2016, we now owe $61,162.50. Here is the story of the $5000 difference.
We began repaying loans in April, at the rate of $500 per month. We created a pool of our older lenders to repay first, as planned. Prayer and a random number generator in Google Docs selected a person to repay each month. In some months the person selected was owned less than $500, so a second lender was chosen so we could repay the full $500 for that month.
In three months (April, June, September), when we contacted our lender to initiate repayment, they declined repayment, turning the amount due that month into a gift. In addition, another lender, without being selected, contacted us to turn a $500 loan into a gift. In all, $1,475 worth of loans was forgiven in 2016!
The total we actually repaid in 2016 was $3,525. Add that to the $1,475 forgiven, and our total loans due have been reduced by $5000 in 2016—$500 more than expected.
When can the remaining lenders expect repayment?
We still have $4875 due to our pool of older lenders. At $500 per month, that is nearly 10 months. So, unless you are reasonably senior :-), the end of 2017 is the soonest you might expect a repayment.
God willing, however, all lenders should be repaid within 10 years and 3 months—by March of 2027. (That’s $61,162.50 repaid at $500 per month.) And we have not forgotten our plans to ensure we repay a few of you well before that time.
I’ll add a brief cash flow report, too.
Our income is still less than our expenses, so our bank account is declining. But we expected this as we transition to Atlanta income. I am gradually gathering more piano students. (I just signed up another this week, making a total of eight, representing $584 of piano income most months. I hope to eventually have about thirty students.) Choice Books has provided a steady part-time income as expected, and I am continuing Open Hands writing work as I find the time. The decline in our bank account is slowing, and I am hopeful the tide will reverse sometime in the new year. Meanwhile, we do have a little short-term savings that could cover normal needs for a couple months even if income stopped entirely.
House repairs have come a long way! There are still several big projects left that will make life more pleasant, but I think most of the repairs that were urgent for the structural health of the house (sewer leak, termite treatment, pest protection, heat pump, etc.) are now done.
We had some unexpected expenses this summer due to a ministry opportunity. But this opportunity also stirred a few people to share unexpected gifts with us. I am reminded of Paul’s words:
God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work… He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness. You will be enriched in every way to be generous in every way, which through us will produce thanksgiving to God. (2 Cor. 9:8, 10-11 ESV)
May God make each of us channels of blessing in 2017!
Dwight & Zonya Gingrich