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Mortgage Sold

December 12th, 2018 at 07:58 pm

As suspected the mortgage was sold. I’m so glad I did not send off my first payment. Thanks to everyone who encouraged me to hold off.

Now that things seem to be settled, I’ll be sending off the payment on Friday with an extra $100 on the principal.

I still haven’t received anything from the HOA so I’ll reach out to them on the 20th.

I received a letter from the insurance company that the ORI B wasn’t signed, not sure what that was, calling them as well.

And I still haven’t received the homestead information as of yet. 🤦🏽‍♀️🙄

14 Responses to “Mortgage Sold”

  1. creditcardfree Says:

    Great news! You could probably look up homestead information online...it's usually associated with your county government.

  2. AnotherReader Says:

    Why are you sending extra on a low interest rate mortgage when you have all that credit card debt? Why is your mortgage payment so high at $1,685 when you took a 30 year mortgage? Are the taxes and insurance really high?

  3. DW Says:

    AR, thanks for responding. I was thinking the same thing but I didn’t want to be negative.
    Amber, what’s the hurry on sending in the payment? It can be sold again between now and the end of the month. Why don’t you wait until the 31st? You will still be able to take the tax deduction. I really don’t understand. Your primary focus appears to be your mortgage. Do you realize your other debt totals less than your mortgage and I sure the interest rate is greater on the debt. Your focus on the mortgage is like being “penny wise and pound foolish”

  4. creditcardfree Says:

    Geez, I can't believe I didn't tune into you making extra payments on a mortgage when you have other higher interest debt. AR and DW make good points. Dave Ramsey talks about being gazelle intense, but that doesn't mean going after all the debts at once. It means a debt snowball, where you really focus on one goal at a time, and the payments build so eventually you are making very large payments on the final debts. Did you see that I posted about a free website you can use to track debt payoff. It's called Undebt.it. Google it or look back on my blog a few posts. This might give you a better handle on your debt and how to attack it.

  5. Amber Says:

    Hi all,

    I’m paying extra on all bills, CC9 is slated to be paid off by February or before then.
    Sorry about the confusion, the mortgage is actually $650 a month. But I added the esscrow which it brings it to $965, the rent was $950.
    I’ll check out the Undebit site.
    I guess I’m a little nervous about this mortgage and want to stay ahead. I think it’s that era of depression thinking. I was let go twice both tunes I was able to pay the bills. Both times I was renting and if things got tight I said I could move home. For me with this mortgage I feel like I can’t move home, so I need to stay ahead of the game. It’s nerves, plus with the SO leaving I feel like I really need to stay on top of it

  6. creditcardfree Says:

    It's understandable there is fear involved, but the decisions you are making are out of fear not logic. So paying the extra on the mortgage for how long would finally make it so that you could not worry about making the payment, if you were let go? Paying extra does reduce interest over time because the principal balance on the loan is reduced, but a payment regardless of the balance is due EVERY month. You would have to check with your lender to see that if you mailed two payments today for example if those count for months ahead or would go to principal. Mortgage loans can be different that other loans.

    Paying extra on all bills is inefficient, that's why the snowball method works. Definitely try out Undebtit and let us know what kind of plan you can come up with to get to your goal more quickly.

    I sure understand your fears. Being single and relying only on yourself is tough. This is where an emergency fund is key. Did you set one up with proceeds from that sale of your Dad's house? How many months of expenses does that cover? How many months of bare minimum expenses would reduce your fear?

  7. AnotherReader Says:

    How you stay on top of the mortgage is to have savings. Six months of expenses is not unreasonable if you have any fear of being let go. Making payments ahead is not a good approach.

    In your shoes, I would use the Dave Ramsey approach but with one modification. I would add some to the emergency fund with every paycheck, not just keep it at $1,000. Once you have around $6,000 in that fund (or a little more to cover the HOA), I would then put everything into paying off the other debt. So for now, I would make the payments on the cards and the student loans, with enough to the student loans so no more interest accrues. I would pay the mortgage payment as billed, put some in the emergency fund and put the remainder to CC9.

    This should help you calm your fear about a job loss. You are a hard working, productive person, so I can't see you not finding a job or a few jobs to make up some or all of the income if your current job disappeared.

  8. klarose Says:

    As I commented on the last post, another vote for not paying any extra on the mortgage. That does not help you at all until years later, and you could benefit right now from paying down high interest credit cards. If you are worried about a job loss or such in build up your EF, but paying extra principle on the mortgage will not keep them from taking your house if you can't make future payments.

  9. DE Says:

    Amber, thanks for clarifying. AR is right, it's all about the emergency fund. I would build that fund up to at least 6 months. That's where the $100 should go. And if you don't feel comfortable then go to 12 months. Your fear will decrease and your financial confidence will increase with the payoff of your remaining cards and student loans.

  10. DW Says:

    DE should be DW

  11. creditcardfree Says:

    I think AR is exactly right. Pay as mortgage as billed, pay enough to cover interest on student loans and then build up your emergency fund. The emergency fund will give you the peace of mind to pay your mortgage if unemployed. It's about finding the right balance of security AND paying down debt.

  12. monkeymama Says:

    Having experienced much employment insecurity in my lifetime, I totally agree with the others. Paying more on your mortgage doesn't help you at all to deal with unemployment. It just ties up your assets in a house. It doesn't pay your bills when you have no income.

    Overall, you'd probably want to be making up for lost time with your retirement/investments. The nice thing is those can always be used in an emergency, so win-win.

  13. crazyliblady Says:

    I agree with AnotherReader. You should not be paying any extra on the mortgage and instead, you should any extra money to be paid on debt to the credit cards and whatever other debt you have. The reason is that your mortgage is likely lower interest than the credit cards. Also, does your mortgage payment include the payment to escrow for insurance and taxes? If not, I understand you have to pay for those on your own.

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