Personal Finance

My brand new debt!

Refinancing is such a non-glamorous life event. Not that I would, but I cannot show it off like a new car or house. All I can do is stare at the loan and plot how to kill it. (That sounds sinister!) Immediately after I got final notice that the process was complete, I logged onto my bank’s online portal and there it was. Now every time I check my bank account balances (which is about 20x a day), I see the horrible number. Unfortunately with the refinance, I now owed more than $175K which was my first milestone I hit a few weeks back!

I decided to make a principal only payment using the funds dedicated for November mortgage payments. These funds were now “extra” since my first payment isn’t due until December. After spending about an hour trying to figure out how to easily do it, I came to the horrifying conclusion that there is no way to electronically transfer principal only payments to my mortgage. This almost had me in tears! One of the main reasons I refinanced was so I could make snowflake payments ($10-$15) on this loan whenever I wanted. The only option is to mail in a physical check each time! Evil bank strikes again!

Because the balance really bothered me (I know, I’m weird), I decided to go ahead and make December’s payment in October. Not only would I get my balance back under $175K, I could also see how the bank handles online monthly payments with additional principal. Using the online mortgage pay, I sent a payment of $1,940.78. With in 36 hours (which was a bit longer that I thought it should take), my new balance was reflected as: $173,843.98! Much better!

I updated my payoff plan as well. With the new refinance, I have already hit several other milestones due to my lower interest rate. It feels a bit like I am cheating though. At some point, I will redo the whole chart, but for now it looks like I am really making progress!

Happy Friday and happy savings!


6 thoughts on “My brand new debt!

    1. It’s a bad habit that I’m working on. It mostly stems from previous fraud on our account, keeping tabs on my husband’s spending as well as using credit cards to pay for most of our expenses. As soon as we make a transaction, I like to move funds from my checking account to cover it. We get points but not a crazy credit card bill at the end of the month.

      Liked by 1 person

  1. I love hitting goals so yay! for getting back under $175k!! I would be frustrated with having to send in a check to make a principal only payment! That’s kind of a bummer. Can you pay more on the principal when you are making your normal monthly payment?

    Liked by 2 people

  2. I check our accounts usually once a day (and before our home was paid off, I had to make myself stop staring at the balance. I was obsessed with getting rid of it and even sent a snowflake payment of $3 once. There were lots of snowflake payments sprinkled in through the month. I say good for you!

    Liked by 1 person

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