PhoenixStrength
Found my Prince Charming!
- Joined
- Oct 7, 2010
This is what made sense to me, to just pay it all at once to principal-only. Then I read somewhere about how making extra payments each month is better than lump sum. I must have had it confused. Yes, the less time your principal balance is at a higher amount, the less interest you pay. For that reason, I always pay our mortgage extra early, around 20th-25th. When I signed up for autopay several years ago, it was around the 5th of the month and I called them to ask why they haven't taken my payment. They said I have a 10 day grace period and it won't be marked late. Still, you are waiting too long and it will result in more interest being charged. They actually took the money on the 10th. I dropped that auto pay crap like a hot potato.
Just from paying dh's truck payment a week early for 4 years, (back in the coupon book days) the last coupon said we will bill you. It was $50 less than the other months and they told me it was from paying early. That was a used truck for 4 years. Imagine the impact that has over 15 or 30 on the cost of a house!
For everyone that doesn't know, this same principle applies toward credit cards. Interest is based on your average daily balance, so making a payment as soon as your statement becomes available = less interest being charged versus waiting to pay until the due date. Obviously this is only if you carry a balance, if you are paying it in full each month than it doesn't matter since you won't get charged interest. But if you are carrying a balance than make the payment as early as you can to reduce the amount of interest you are accruing.
@imbatman I'm so sorry your SO had this happen. Good luck with everything and I hope he can get unemployment to make up the difference in pay.
In personal news, we cancelled our October WDW trip. With everything that is having to be eliminated due to Covid19 (fireworks, parades, character meet and greets, dining plan, Fastpass+, etc) we just can't justify the cost versus what we would be getting. We are hoping there will be a vaccine early next year so we can go in Fall 2021 instead, but we will wait and see. Still keeping our DCL trip for November for now since we don't know yet what restrictions and changes will be made with the cruises. In good news the refund from the WDW trip, which was paid off, will cover the rest of the balance we owed for the cruise!
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