Our refinance finally got approved yesterday. Great news!
My excitement at saving almost $350/month was dampened when I realized the settlement would come AFTER our mortgage payment for this month is due. I was hoping we wouldn’t have to pay it this month.
You may or may not know that you have a grace period for your mortgage payment. Most companies state something on your bill like “payment due date: February 1st, late fee after February 15th of $xxx.xx”
You have 15 extra days to make your payment every month if you need it. I wouldn’t recommend getting on a schedule of paying after the due date, but it may help you get through a tough month, so don’t be afraid to use it to your advantage.
We’re operating on a bi-weekly budget. Since we get paid bi-weekly it is easier for me to use one 2 week period for the mortgage (and spending), and the next bi-weekly period for other bills/debts (and spending). Eventually we’ll get ahead and then we have a “free” paycheck. Right now we are paying our monthly bills/credit cards 2 weeks ahead of time, and the mortgage is being paid right around the due date. (it would have been 2 days late this month and early next month)
Knowing the mortgage is going to be paid off towards the end of the month (but past the grace date) I’ve been debating what to do.
I called the mortgage company (Wells Fargo) this morning and asked if they could waive the late fee since the mortgage would be paid in full a few days after the grace period ends. The customer service rep looked at our history and said no problem. (it pays to be on time!)
To save a headache later I put aside a mortgage payment in our savings account. That way if the refinance doesn’t go through on time we can make the payment, and if it does then we have just added a nice chunk of $ to our savings account.
By refinancing we are freeing up 2 months of mortgage payments, as well as the money in our escrow account. The money will be divided between 2 goals. We will keep enough in our savings accounts attached to our checking to cover one month’s expenses, and we will use the rest of the funds to pay down more debt.
Kelly
© 2009, Whalen Media LLC. All rights reserved. To repost or publish, please email Kelly.
