Ok, I read the first post then skipped everything else because I'm lazy. I just figured i'd write that I do this because I'm paid every other week. I have Wells Fargo home mortage, they just auto-deduct my mortgage out of my account every other friday. Works great for me. If you have any more questions feel free to PM me.
HAHA, wow! SO they think you can't afford the payments at 6.5%, so they raise the interest to 29.99% to help YOU out?
I just read an article that explained a new bill being proposed that would limit credit agencies from doing things like that. The same bill also covered the paying of high interest balances first if you have balances at more then one rate, such as transfers.
True. First CC company I ever had, was with them 17 years. Excellent customer service. Now from their point, part of the story is true. I could cover the mortage by myself, but it would be tight, maybe real tight, but it could be done. The issue is, they pretty much said they didn't care that 2 of us purchased the house and I would only be covering 1/2 of the payment, they just expected me to cover the whole thing. But they were nice enough to quadruple my interest to help out. My mom has ran into that and it really messes things up. The CC company held her payment until it was past due, tacked on a late fee, issued a cash advance to cover the bill, then applied her payment towards the rest of the balance the next month. So basically, they just forced a lump of balance to the cash advance side so they could use the 30% cash advance rate, and then make her pay down the lower interest balance before they would allow money to be funneled towards the high interest balance. Russ
I have a 5.5 30 yr fixed from the wellz fargoz...I do the 2x monthly thing. When I did the math as long as you are on the program for a while (fees may have changed since I started but I think it was 2 years or so) you will come out ahead. If you want to invest with the difference and keep the tax deduction longer you could. Now is a good buying opportunity being you are young despite what the market is doing otherwise some fixed investments like life insurance, cd's, or fixed annuities are all fine.
This is smoke and mirrors. There is nothing better than Uncle Sam paying +/- 40% of your housing payment (tax affected). This is a lender playing the float game, not a benefit for the borrower. Unless you're <10 years to retirement it is ALWAYS best to keep real estate assets at maximum leverage and reinvest elsewhere. To disagree with me is to perform fiscal hari kari.
