This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Friday, March 28, 2008

The upside of paying two mortgage payments

Posted by Matt

I felt bad about posting the bad news about falling interest rates on a Friday, so let me redeem myself with a positive story about falling interest rates.

My wife and I have been making two mortgage payments each month for the last five months. No, that's NOT the good news. It's painful, no doubt, but could get worse...I spoke to a friend of mine who paid double mortgage payments for almost a year before he was able to sell his last house. He's smart with his finances and so he's always had good credit scores, but making double payments on time paid off by pushing him past the 800 mark! As a result, he is refinancing his mortgage and expects to drop his interest rate by between 1.5 and 2 percent.

I was already looking forward to selling the house and rerouting that mortgage payment into my savings account, but suddenly the light at the end of the tunnel just got a tiny bit brighter.

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