Thank you Housing Bubble!
Thanks to the interest rate adjustment by the Feds, my monthly mortgage payment just dropped almost $200!
Yay!
Yay!
Labels: Business, Government, Money, Real Estate
posted by Big Daddy at
Friday, February 15, 2008
Denver
3 Comments:
I too share in your joy of lowering my monthly payment by almost $200.00
did you refinance or did it automatically adjust? our first is up next year, and I am worried about it raising. glad to hear yours is going the other direction
I'm on an 30 year adjustable rate mortgage with a cap at 12% for the life of the loan.
It was 11.75 at one point which I could totally handle because even though I was approved for an obscene amount before purchasing, I crunched the numbers to see what my max monthly payment could get me.
And thanks to the mortgage freak out, it has only gone down since then.
But I am still over-paying my mortgage at what it would be at the 11.75 rate so that my principal goes down.
What's cool is that it adjusts every 6 months, so if I keep making the same payment, it reduces the principal and when it re-adjusts it goes off the new remaining principal.
After years of living paycheck to paycheck, I put a lot of thought of taking on such a large amount of debt which ended up paying off.
I do have a second mortgage which is a home line of credit, which works as a credit card, but I'm ok with that because it acts like a credit card [sort of] and the interest rate is determined each month based on the current Fed rate, so my payment fluctuates.
What's nice about that is that I can still deduct the interest on that line of credit on my taxes.
Plus it's at a lower rate than any of the real credit cards I have.
There's this site that I read that helped educate me on how to play with money called Consumerist.com.
It has great tips about stuff like how to get out of cellular contacts when there is a change to your service.
Post a Comment
Subscribe to Post Comments [Atom]
<< Home