How to Save Money - Page 19

MissBrattified · #**181** 10-14-2008, 10:18 AM

Quote:

Originally Posted by ILG

Very good points on that. Yes, $75.00 is a small fee to pay what you are going to pay anyway and then save that much money. And then, any extra paid per month is great too. Amazing that it knocked it down to 23 years instead of 30. We have never been enrolled in a program but have paid extra in the past. Another thing, for those who have PMI (Private mortgage insurance), it is best to get rid of that. You have to have at least 20% down on your house to get out of PMI. If you are in a position where you are required to have it, if you pay extra every month, keep track of where you are and as soon as you have that 20% down, call your mortgage holder and ask them to take you off of the PMI program.

I'm glad you mentioned PMI!!!! It slipped my mind--I need to call our mortgage co. about that. We should be able to remove it in the next month or so.

ILG · #**182** 10-14-2008, 10:21 AM

Quote:

Originally Posted by MissBrattified

I'm glad you mentioned PMI!!!! It slipped my mind--I need to call our mortgage co. about that. We should be able to remove it in the next month or so.

tamor · #**183** 10-14-2008, 10:22 AM

Quote:

Originally Posted by ILG

Thank God they are ok! (I assume!)

LOL. They are - put my checkbook wasn't after paying the increased premiums on their insurance bills. Fortunately, my youngest daughter will be 21 in a couple of months so I hope to see a drop in hers. We have one more to go. My stepson turns 18 this next month so we're getting there - slowly but surely!

MissBrattified · #**184** 10-14-2008, 10:24 AM

Quote:

Originally Posted by My Own Eyes

Actually for the financially disciplined it's better to do that on your own rather than pay to enroll in the program. Just calculate what the extra amount the 2 week plan would allow you to pay, and then divide that by 12 and tack it on as a principal only payment to your monthly mortgage payment (and save yourself the 75 bucks). The added benefit is that in case of a financial hardship, you can momentarily go back to paying the regular payment.

The other thing I did to save myself money on my mortgage (and again this only works for the financially disciplined), when I recently refinanced my mortgage (due to the divorce), I chose not to escrow my taxes and homeowner's insurance. Instead, I "pay" my escrow payment every month into a high interest savings account (such as ingdirect). At the end of the year, I get to pocked the 3% interest I earned on that money, rather than my mortgage company.

I also do that with my taxes to the government. I chose to have the least amount of taxes possible taken out of my paycheck. Sure, I have to pay money in every year, but once again, I got to earn interest on it, and not the government.

Well, we wanted to have our payments automatically drafted, so it was just easier for us to enroll in the program. You still have to be a payment ahead...or is it a half payment? Because you have to be ahead of your regular mortgage payment. e.g., you can't pay half your mortgage payment, and then pay the other payment two weeks later. You have to pay your mortgage in full, on time, regardless, so the half payments have to show up in time to be a full payment. I guess that makes sense.

Also, it does benefit you, interest-wise, to make bi-monthly payments rather than once a month, even if you tack on extra payments toward principle, because every time you make a payment, it's reducing your interest at the tail end of the loan in proportion to what you still owe. (Moreso than if you let that balance sit there for the whole month before you make another payment.)

But, I agree--there are definitely ways to pay it down significantly on your own, and people would be surprised how quickly a "little bit" each month will reduce your principle, and resulting interest.

My Own Eyes · #**185** 10-14-2008, 10:34 AM

Quote:

Originally Posted by MissBrattified

Well, we wanted to have our payments automatically drafted, so it was just easier for us to enroll in the program. You still have to be a payment ahead...or is it a half payment? Because you have to be ahead of your regular mortgage payment. e.g., you can't pay half your mortgage payment, and then pay the other payment two weeks later. You have to pay your mortgage in full, on time, regardless, so the half payments have to show up in time to be a full payment. I guess that makes sense.

Also, it does benefit you, interest-wise, to make bi-monthly payments rather than once a month, even if you tack on extra payments toward principle, because every time you make a payment, it's reducing your interest at the tail end of the loan in proportion to what you still owe. (Moreso than if you let that balance sit there for the whole month before you make another payment.)

But, I agree--there are definitely ways to pay it down significantly on your own, and people would be surprised how quickly a "little bit" each month will reduce your principle, and resulting interest.

You make a good point. I just get irritated when I have to pay someone else to do something that I can do myself, lol.

I am especially irritated because after 5 years of paying down my mortgage, refinancing caused me to be effectively back where I started. A necessarily evil, I know. But it's frustrating enough to pay money out the wazoo, and at the end of the year only have paid a thousand off the principal, then to watch your principal rise right back to the top.

The good news is that they somehow managed to get rid of my PMI, at least I don't need to worry about that anymore...

Digging4Truth · #**186** 10-14-2008, 11:46 AM

You can gain the benefits of a bi weekly mortgage without making bi weekly payments especially if you are paid every 2 weeks.

I have a budget. Each check there are certain bills that have to be paid. The next check the rest of the bills have to be paid.

I pay my mortgage every other check. Since I am paid every other friday this IS a biweekly payment.

At the end of each year you will be one more month ahead on your payments.

Biweekly payments will pay off a 30 year mortgage in 22 years.

Theresa · #**187** 10-14-2008, 01:47 PM

right now JCPenny has an awesome clearance....their left over summer stuff is .97 each...great time to pick up kids clothes and such

Theresa · #**188** 10-14-2008, 01:57 PM

Quote:

Originally Posted by ILG

Going out to eat is very expensive. But on those occasions that you do, if you are trying to do it cheaply, go to McDonalds and order off the dollar menu and get water. That's pretty cheap. Other cost savers are always order water rather than soda. Use coupons, lots of restaurants allow those. Or order the soup and salad.

we went out the other day and they CHARGED US FOR WATER...

Ron · #**189** 10-14-2008, 01:58 PM

Quote:

Originally Posted by Theresa

we went out the other day and they CHARGED US FOR WATER...

You have got to be kidding?????????

Theresa · #**190** 10-14-2008, 02:00 PM

Quote:

Originally Posted by Blubayou

I don't remember if this has been shared, but this year I have gone to buying more store brands to save money. Most items, you do not sacrifice quality and it is a real savings.

if you pay attention, some of the store brands are manufactured by the same company as the name brand...they formula may be a tad different and the packaging certianly is...but you pay for advertising and slick packages with name brands. USUALLY

Aldi is a Godsend. I do advise taking the can water out of the veggies and using your own water....but the quality of their products is as good as anything you can get at the chain stores. Some of it is BETTER