I would fix it and keep it till it's paid off or if it's paid off, save money up and in a few years either sell the car or keep it and have an 03-04 Cobra.
If you keep it basic, just a fresh rebuild and do some of the work yourself, it won't cost that much. If your like some of us, and i'm guilty, you start simple but then you want to replace this and that with better more expensive and then you've blown your budget. Just see what it would cost to get one from ebay, a fresh rebuild or just parts replaced and stick to that budget. If you don't go boost or nothing crazy, stick to the oem studs not ARP. If you plan on keeping it, then i can see doing that.
if you have the cherry picker, jackstands and know how to turn a wrench, you can remove a engine. It's not as hard as it seems. First time i did it, over 12 years ago, i though i was going over my head, afterwards i thought it wasn't nothing special. done several after that too.
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