Small Victories: Mortgage Shenanigans

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Today I paid my mortgage payment with the start of my new mortgage payment book.  Yes, I know I can do it online.  I get a certain charge out of ripping the payment out of a book and mailing it in.  Anyway, I noticed that my payment was now about $20 cheaper per month than last year.  I think this is the result of two things, and I think it’s a small money victory!

First, my escrow was set too high.  I got a small check back for that last month.  Second, I always pay a tad bit extra on the mortgage payment.  Now, it’s only a tiny bit at this point because I cannot afford to do more, what with my other bills and savings goals.  But it’s something.  And between the two things, I suddenly find myself with an extra $20 in the mortgage to put towards it.  Whoo hoo!

I passed on a program to have my mortgage put into bimonthly payments, even though that meant it shaved about 5 years off the mortgage.  I discovered that I could essentially do the same thing by paying an extra mortgage payment each year and avoid the “one time” fee they charge to get it set up and the “small” monthly fee to debit it out of my account automatically.  When other debt is gone, I can easily ramp up this payment and meet my goal eventually of paying off the mortgage for my 50th birthday.

In the meantime, I’m going to enjoy my small victory where money just “happened” and continue to try to apply that measly $20 toward the mortgage instead of trusting myself to move it into some other account for debt.  For one thing, I’m used to the payment.  It’s a good payment, much cheaper than my first one (even more with an extra $20 thrown on top of it lol).  For another, I’m not sure I’d remember to add an extra $20 every four weeks or so.  I’m kind of money-daft.  Better for me to let the money compound on the payment, even if it’s a little bit at a time.

But hey, even if that $20 is like throwing a little snowball in the face of debt, it’s one extra snowball I have to lob!  I’ll drink my cup of tea to that!

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2 responses »

  1. Yay! Glad to hear some money happened.

    Your property taxes may have dropped. That would explain it. However, homeowner’s insurance premiums are (heh) surging. Hereabouts, they went way up, both on my house and on my son’s. We found a good insurance broker (not an agent) and he was able to save a significant amount. If you can locate such a personage, that might be worth checking into.

    Be sure the extra $20 actually goes toward principal. Mortgage lenders like to apply extra money to interest, which of course does you exactly zero good.

  2. I agree, and that’s why I like my paper payment — there is a specific category to make sure that extra money is going to principle. My student loan, however, is a different story. I have such a hard time getting them to apply ANYTHING to principle even if I wrote it on the check. They tell me that whatever is in excess of that month’s interest charge they automatically apply to principle, but I don’t believe them. That might make a great post, actually.

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