Mortgage Refinancing

[smilin]

I couldn't afford a single mortgage payment at the first of the month, so I wrote two checks each month. I tried to send in a check on the 15th and the other half on the 1st and NationsBank said that I was late because they didn't receive the whole payment on the 1st. For a few years I still wrote the two checks but sent them both in at the same time. Made them cash two checks every month.

After the first year I started to round up to the nearest hundred, which meant I was adding about $40 extra principle every month. (Hey, it was all I could afford). That extra slowly went to $50, then $100, then $200...all extra principle. After about a few years NationsBank and BofA merged and BofA took over the mortgage and I got a new amortization table and I had knocked about 2 years off the end, so I was down to a 28-year (+) mortgage.

When I refinanced, my payments were every two weeks and each payment was roughly equal to what my monthly payment was supposed to be. Basically I was paying the equivalent of 26 "monthly" payments every year.

That's the way to do it. I can't save a dime unless it's out of sight - out of mind. Paid off my Mortgage with extra payments. Can't count the amount of zeros I saved in interest.

 

[renegadeslave]

A couple thousand refund on on the other hand?.. your are grossly mishandling your own money; although you would not be earning much in way of interest on it these days, you could have been reducing your interest-bearing debt with it.

Is that the only reason? Not disagreeing or criticizing, just wondering.

 

[renegadeslave]

Wells Fargo is one of the worst one's to deal with. JMHO
Ask me how I know. They want the "minimum"; meaning, full payment amount NLT the due date. It is said there is a "grace period". Grace period "shmace period"! During that "grace period" they tack on late fees. I don't care WHAT they say.

If you have a choice, stay the H*ll away from WFHM.
And NO, that's not a radio station.

Thanks for the info. We will be refinancing as soon as our credit is a little better. That's why I wanted to know what we would have to go through as far as appraisal and all that.

 

[Gilligan]

Is that the only reason? Not disagreeing or criticizing, just wondering.

How many reasons would anyone need to not give someone (Uncle Sam, in this case) the free loan of their money for absolutely no benefit??

Do you know of any?

On the other hand..if you kept a thousand dollars from simply languishing in an IRS account because your deductions are incorrect and used it instead to pay off credit card or other interest-accruing debt..that thousand bucks actually saved you some real coin that you otherwise would have been charged.

 

[DEEKAYPEE8569]

Would you want your employer to pay you on pay day, or would you rather them have a 10-day grace period where they pay you on the 9th day at the 23rd hour?

A due date is just that. I agree with late fees starting on the first day of non payment.

I know that. I'm not saying the late fees weren't justified. I'm not saying they were, either. I'm not saying I should not and never be subject to them; but you're comparing apples and oranges here, Chasey.

If my employer DID pay me on the 9th day at the 23rd hour, MY participation in the grand scheme of the economy would be a little skewered.
I used the correct word.

If THAT happened, due dates on the first of the month WOULD be missed; that's cause and effect; but through no fault of mine; unless I arranged with my creditors to perhaps; but inprobably; change the due dates for payments until after the 9th day at the 23rd hour.

 

[Chasey_Lane]

[you're comparing apples and oranges here, Chasey.

Not really. Creditors want their money on the day it is due, just as employees want their pay check. Each has a set of responsibilities that operate based on cash flow. I have to budget each month to ensure my bills are paid, otherwise my electric gets cut off. Cause and affect, just as you mentioned.

 

[renegadeslave]

How many reasons would anyone need to not give someone (Uncle Sam, in this case) the free loan of their money for absolutely no benefit??

Do you know of any?

On the other hand..if you kept a thousand dollars from simply languishing in an IRS account because your deductions are incorrect and used it instead to pay off credit card or other interest-accruing debt..that thousand bucks actually saved you some real coin that you otherwise would have been charged.

I'd just rather have them give me money back than have the chance of owing at the end of the year.

 

[Gilligan]

I'd just rather have them give me money back than have the chance of owing at the end of the year.

Sure! Me too..having fd and state refund you a few bucks ..even a ew hundred bucks worst conservative case....means you have it all figured right.

I'm referring to people who let uncle hold on to thousands...and for some strange reason, there are quite a few of 'em that do that. It's their money to misuse as they see fit..but still.?

 

[Ohiogirl]

Sure! Me too..having fd and state refund you a few bucks ..even a ew hundred bucks worst conservative case....means you have it all figured right.

I'm referring to people who let uncle hold on to thousands...and for some strange reason, there are quite a few of 'em that do that. It's their money to misuse as they see fit..but still.?

Are you sure those thousands that Uncle Same are holding aren't child care credits and other credits they may be getting?

 

[awpitt]

Actually that's not right. You pay rent in advance, mortgage in arrears. The interest you pay at settlement is escrow money. That's why you try to close as near to the end of the month as possible. Once you live in your house for a month you pay your first mortgage payment.

You're right. I stand corrected. I confused another line on the HUD-1 and thought it was regular interest.

 

[Wenchy]

Thank you for the names and recommendations.

 

[smilin]

You're right. I stand corrected. I confused another line on the HUD-1 and thought it was regular interest.

HUD-1s are the most confusing things I have ever seen. It is as if they are set up totally the opposite of any accounting form I have ever seen.
The one thing in Real Estate that remains the best advice is: ASK.
If you don't understand, keep on asking, until somebody clears it up.

 

[Gilligan]

Are you sure those thousands that Uncle Same are holding aren't child care credits and other credits they may be getting?

No. The examples I'm referring to are the large population of tax payers who simply have too much withheld from each pay check. As an employer for so many years..I see/have seen plenty of examples.

And..I've been told more than once "I know..I know..I'm letting Uncle hold my money for nuthin. But if I didn't over-withhold, we'd never be able to set aside a dime otherwise"

OK..I understand that. I get it. For some, the tax collectors become the "enforced savings police", setting some money aside that would otherwise not have been. Not everybody has the discipline to live to a budget either.

 

[Vince]

No. The examples I'm referring to are the large population of tax payers who simply have too much withheld from each pay check. As an employer for so many years..I see/have seen plenty of examples.

And..I've been told more than once "I know..I know..I'm letting Uncle hold my money for nuthin. But if I didn't over-withhold, we'd never be able to set aside a dime otherwise"

OK..I understand that. I get it. For some, the tax collectors become the "enforced savings police", setting some money aside that would otherwise not have been. Not everybody has the discipline to live to a budget either.

So make a flat tax. :shrug: No waiting, no returns, but then you don't need a whole bunch of IRS folks or H&R block types. More people out of work.