I now have a new 30 year mortgage (I wanted a 20 year mortgage, but they are not available for my situation).
I have $93K to pay off. The mortgage company sent me a notice that I can pay every two weeks if I want. The idea being that they will be getting extra payments that way.
What I don't like is they take it out of either your savings account or your checking account. Also, I'm not sure that I want to do it this way. I want to pay ahead on my mortgage, which starts in November. I have the will and know how to pay ahead on principal without using this type of system. Does anyone have any thoughts on the subject?
Mortgage Questions
October 15th, 2009 at 03:34 pm
October 15th, 2009 at 03:43 pm 1255621392
I'd go with that! Good luck. Keep us updated.
October 15th, 2009 at 04:42 pm 1255624931
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PS - Make sure ALL of your EF, Savings and Retirement contributions are maxed PRIOR to giving more money to your mortgage company. Remember, PAY YOURSELF FIRST. Auto withdraws are not bad (see putting your payments on autopilot), but NEVER bi-weekly mortgage payments. God bless.
October 15th, 2009 at 08:48 pm 1255639708
Then I'll post back and let you know.
And boy - I ain't going with the bi-weekly - that's for sure.
Thank you guys. You are the best!
October 16th, 2009 at 01:14 am 1255655662
How I did it. 1st I set up a seperate saving account for just my mortgage to pull from. Then I get paid on the 1st and the 15th of the month, so I have a automatic (or you could do it manual) from my main account to my just for mortgage account. Then I set up the automatic payment to the mortgage company from the mortgage only savings account.
They say you should have 3-6 months worth of expenses in savings so I figure my mortgage savings is my 3-6 month cushion of mortgage expenses. I only have two months payments extra in there now but I plan to grow it now that I am on baby step 3.
I then can pay extra principle by dropping a check in the mail, or go to their website to make extra principle payments.
October 18th, 2009 at 08:14 pm 1255896892
I found out my rate is 5.375, which is pretty darn good.
Smooch.
October 19th, 2009 at 04:03 pm 1255968209
If you pay an extra $115 per month, you shave off 10 years (+1 month). An annual lump sum of $1400 accomplishes the same.
Hope that helps!
October 19th, 2009 at 09:53 pm 1255989194
Congrats on the new loan - at least now you know where you stand, where before you were just guesstimating. Now you can get down to the brass tacks of creating a great financial future for yourself Miz Pat!
October 23rd, 2009 at 07:49 pm 1256327370
Jerry
October 26th, 2009 at 04:33 pm 1256574831
Ms Pat
October 26th, 2009 at 09:52 pm 1256593941
Get an amortization schedule and try knocking that thing on it's ear. We cut our 15 year loan to 10 years and a couple of months by constantly prepaying extra principal. Make sure you mark each such payment clearly as going to extra principal and make sure they take it off there. Can you check your new loan info online?
October 27th, 2009 at 08:23 pm 1256675002
I did make my extra principal payment with the first bill and had a cover letter with it. They still haven't sent me payment letters or coupon books or whatever it is they use.
October 31st, 2009 at 02:35 pm 1256999711
OR, try inputting your loan figures into an online amortization calculator and print that baby up and put it in your loan file. You can go far by paying attention to next month's principal and paying that in addition to your regular payment. What you can do online may be a few pennies off from what their schedule would say, but it's close enough for govt. work.
A very good read for you would be to go to the library and check out John Avanzini's "Rapid Debt Reduction Strategies". It's Christian based and has lots of good ways to quickly attack that mortgage and other debt as well.
Go girl!!!
October 31st, 2009 at 04:16 pm 1257005799