Another snow day means another project to get done & today I was
getting all our Tax Documents together for our meeting
with our accountant next Monday. Fun times (not!). But while I was getting this stuff together & jamming to my 90's rock, I kept thinking of all that we will do with our REFUND
... hmmm ... beach vacation where we can sip on pina coladas all day, or having a "pamper me" day or 2, or a weekend in Napa visiting all the fabulous wineries ... WHAT?! A girl can dream!
But just as I was finishing, I was shocked at my new idea of what we should do with our refund. I hope you're sitting down for this one because it's a shocker!
Wait for it ...
Wait for it ...
SEND AN EXTRA MORTGAGE PAYMENT
I know ... I told you it was a shocker! But after I mentioned it to my husband, he agreed that it'd be the best thing to do too. *On a side note, the fact that my "teckie" husband, the one who pre-ordered an I-Pad before they came out, agreed with me on this!!! Talk about a shock!
Okay so I hear you! WHY send in an extra mortgage payment? It's simple, by just sending in 1 extra payment, which by the way goes directly to the principal,
- We'll be able to pay it off sooner ... at least 4 or more years!
- It also greatly reduces the amount of interest we'll have to pay ... by the $10+ thousands (which is more than any tax return i'll be getting)! and it
- Builds up more equity in the house ... which increases our credit rating!
After talking with my favorite Mortgage Banker, Stephanie Stringer with Mortgage Express, she told me that it's an absolute money saver! She did tell me to be sure to write on the check memo line "Extra Payment for Principal" and to put a note in the envelope stating the same thing. If not, the banks will think we're just making an early partial payment for next month and won't apply it to the principal balance of our loan.
So now with fingers crossed that we get a refund, I'm dreaming about all the fabulous things we can do the $10+ thousands we'll be saving ... hmmm
... a beach vacation on a private island where we can sip on pina coladas all day, or having a "pamper me" day every week, or a week in Napa visiting all the fabulous wineries collecting wine for our new wine cellar ... WHAT?! A girl can dream!