Month: September 2016

That is my thought, every penny counts!

Even if it is not a lot, anything is better than nothing, every penny that I can get off of it , I want off. We plan to refinance as soon as we can to get the interest rate down as much as possible, but in the mean time…which brings me to another question.

The reason we took the loan was to restore our credit(we paid a hefty down payment and are paying more than needed each month) …I KNOW…but hear me out, we were unemployed for a long time and ended up filing for bankruptcy, not what we wanted, but how it went down. We have been completely cash for 3 years now, I have no credit score at all and my husband’s is very low.

We foresee a move so in hopes of getting a decent mortgage down the line we decided to help our credit out now. I will say we are reaping the rewards of better fuel mileage with this car loan, which helps with the added insurance fee and we intend to pay it off quickly, but not too quickly so the credit can be repaired,but I don’t want to be cheated by Chase either.

So how long should we wait before we refinance to get the interest rate lower?

Categories: refinance

It does make a difference, however it is small

We used to have a 2nd loan on our mortgage. It was a small amount and our payments were around $139 a month. We always paid more than we owed. We slowly increase the amount over time, until we were up to about $350 a month. All the extra went to principal. Because of the way interest is calculated, our payment due each month was actually less the $139.

It is my understanding that they calculate interested daily based on the amount of the money still owed. So if over time you pay more principal, the less the amount the less interest. It may not be a significant amount but it does add up. Don’t let a mortgage company try to persuad you from paying more (if you want too that is). They would much rather try to convince you NOT to do it. After all they are making a lot of money off you. And for them every penny counts!

Categories: mortgage