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$101k and Car$

November 15th, 2020 at 01:24 am

After our November payment, our mortgage is at just slightly below $101k. Our December payment will be approximately $343 principal. So ... if we added an extra $650 or so, we'd start out 2021 owing less than $100k on our house.

I was telling DH this, and he asked how much we'd started out owing. Well, we paid $140k, but our loan was for $112k. So, since May of 2016 we've paid a little over $11k on our balance. He wasn't too impressed with that - interest, what are you going to do? (We pay 3.875%)

I did look briefly into refinancing, but for whatever reason, the low interest numbers weren't coming up for us (i.e. under 3%) or they'd require buying points AND a new inspection/appraisal. I told DH this, and he admitted that an appraisal wouldn't be helpful. Yep, that's for sure.

So ... I flirted with the idea of making that extra payment.

But then we started talking to our insurance person about increasing the coverage for the delivery vehicles ... and that will take finding an extra $1k in the budget for the first 6 months premium if we go with 500k coverage. (I actually know where this can come from - I'd set aside money for auto deductibles - but all of our vehicles are liability only now - so no deductibles.)

DH has finished fixing the muffler on the Acurra - so before he can drive it, it needs to be insured. It is really necessary to have at least two vehicles delivery insured - so if one is in the shop .... On the personal insurance we have my Yarris and the pickup. We won't use the pickup during the winter, but taking it off would only save maybe $100.

I told DH that if he were to have another at fault accident, he'd have to quit delivery driving because the insurance would be too much. His most recent accident (backing into and breaking a pole) was in April, 2019, the one before that was in August, 2018 where he hit a bicyclist crossing the road (he was turning right.) If he can at least get through 2021 with no at fault accidents, the August one I think will drop off his record.

5 Responses to “$101k and Car$”

  1. terri77 Says:

    Most of the money paid in the first years go to interest rather than principal, so $11k isn’t bad at all.

  2. rob62521 Says:

    Is there anyway you can pay extra each month just to go on the principal? The first few years are horrible that the bulk of a payment goes to interest.

  3. Petunia 100 Says:

    Your mortgage seems small to me. Smile If you get to a point you can start sending an extra hundred or two regularly, it will go quickly.

  4. LivingAlmostLarge Says:

    Good luck! Sounds like a good goal.

  5. FrugalTexan75 Says:

    Thanks all!

    Rob - I do send an extra $25/mo. I don't really want to do more than that since the mortgage isn't our priority right now.

    Petunia - Considering I'd wanted to stay under 100k total ... not a small number for me. But I know other parts of the country, this wouldn't buy much.

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