I renewed my mortgage last year in May. I just called the bank to clarify where the extra that I am paying is being credited to because it looked like to me that it was just going to toward future payments. However, that isn't the case. Since May of last year I have paid $2000 toward the principle and reduced my payment. So my monthly payment has been reduced. On average each time I make my payment I am paying $200 toward the principle. I am not as good as some of you keeping up with how much principle and interest I pay but I am pretty proud of the fact that I have paid so much toward the principle.
The renter called me last night and told me that they ran into a medical issue and didn't have the rent. I am not capable of being mean so I told them to get it to me as soon as possible, hopefully this weekend. In the meantime, I need to make a mortgage payment. My son got quite a good bit of money for his high school graduation. So I made a deal with him. He loaned me the money to make my house payment and when the renters pay I will pay him back plus the Late fee the renters must pay. So he is making money on the deal. I just hope that this doesn't become a regular occurance. After July, I will be a month ahead on the mortgage so this won't be an issue, if I stick to the budget I have now.
EXDH is putting $150 into my account. This plus the money from my son is allowing me to still pay extra on the mortgage. I just love the fact that so much is going toward the principle each month. It makes being broke all the time worth it. But is also explains why I need a second job! I am paying extra on so many of my bills that I often run into shortfalls. Oh well...it always seems to work out in the end.
$2000 toward Principle
June 8th, 2011 at 04:56 pm
June 8th, 2011 at 09:54 pm 1307570085