ElysianConfusion

May 8, 2012

It’s Official

My mortgage rate (still a 5/1  ARM) adjusted again. I thought it was going from 3.00% to (wait for it) 3.00% – that’s what the letter from my credit union said. But when I went to check my accounts, I noticed that my mortgage rate said 2.875%. Huh? Of course, I need to be sure about these things. So I called my credit union and explained my problem. They said they’d call me back after researching.

When they called back, they assured me that it did adjust to 2.875% (that’s 1% lower than the original, something I never expected to see). And today I got the mail, and with it came the letter confirming the rate. The credit union said they’d referenced the wrong index when they sent the original letter, and they have procedures in place now to make sure this doesn’t happen again.

On one hand – hey, less interest! I’ll keep my payment the same (it’s now $925 and change, we pay $1,000). This adds up to nearly one whole extra mortgage payment over a 12 month period! I might just have to add in a couple dollars just to make sure it actually is a whole extra payment. That’s something I wanted to do from the moment I got a mortgage, and I never had the flex in my budget to do so. How exciting is that!  According to this calculator, if I had a loan at 3.875% for 30 years for 210,000, and starting in June I paid 75$ extra per month, the extra payments will allow me to pay off my remaining loan balance 2 years and 4 months earlier. Paying off my loan sooner will save $10,291.60 in interest over the life of the loan. Yow!

Of  course, the fact that I have an adjustable rate mortgage means lots of things: I cannot predict where my rate will go in the future, and I can’t compensate for the payment adjustments I’ve had so far. It’s just a guestimate. Still, it’s exciting! Anyone know of a calculator that you can enter your yearly adjustments to date and predict how they’ll go in the future? Please let me know! At this point, the best I can do is be sure it will never go over 8.875% and it would take at least 3 years to get that high (and honestly, markets are not looking that good for that happening soon).

November 18, 2010

Giving Thanks for Every Day

Ok, first of all, today’s grand total is… no drum roll, I think … $352,211.05. Down by $2,274.39.

And what have I accomplished? Feels like nothing much. I did decide to charge $40/hour for copy writing and editing. My husband said $50, another friend suggested $75. The range out there was huge. At the end of the day, I felt like it was my first free lance job and I don’t know how I’m going to do, and it’s my brother in law. So. There you have it.

I’m really wishing I could consolidate my mortgage and home equity loans, but you know what? I really can’t. I don’t have enough equity to be allowed to do it. And because my loans are through my credit union and have no affiliation with Fannie Mae or Freddie Mac, I can’t do anything like the Making Home Affordable plan. What annoys me even more is that I don’t even want to reduce my payments or increase my terms! I just want to fix the buggers at a low rate so I’m not worried about future adjustments. Seems like I’m totally out of luck on that front. (Can you hear the huge sigh?)

I haven’t yet figured out new 529 plans. I haven’t figured out whether my 401k dollars are going in the right place. I hate trying to figure it out. I’ve read that Index Funds are the way to go but that the ING Retirement Plans have index funds with high associated costs. I also gathered that I shouldn’t look at MorningStar ratings, which is included in my ING account and apparently partly what the people who choose available funds for my account are using. Great.

Anyone want to help me out here?

1164 ING Index Solution 2055 Port Adv:

Operations

Gross Prosp Exp Ratio 1.06% of fund assets

Net Prosp Exp Ratio 1.06% of fund assets

Management Fee 0.10%

12b-1 Fee 0.50%

Other Fee .

Miscellaneous Fee(s) 0.46%

Fund Inception Date 03-08-10

They all seem similar.

Still, with all of this, I’m thankful for my family and my life, and I know we are so fortunate in so many ways.

Happy Thanksgiving, Everyone!

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