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Several payments toward October goal

October 1st, 2008 at 04:58 pm

My credit card and all four mortgage payments hit today.
CC: $238 toward principal
US mortgage: $300
UK mortgage #1: $143
UK #2: $30
UK #3: $32

That's $825 down, $2175 to go on my October goal.

And $44,746 left on my Big-Picture Goal.

I'm a little upset because my principal payment on the U.S. has been going up gradually all these years, but I just peeked ahead at next month's, when my payment and interest go up, and it says only $269 will go toward principal, $31 less than this month!

I thought principal would continue to go up steadily, since it's still a 30-year mortgage. What gives?

On the good-news side, it turns out NT will get $100 for his voiceover work! Not bad for half an hour of his time.

Posted in Uncategorized | 4 Comments »

4 Responses to “Several payments toward October goal”

  1. merch Says:
    October 1st, 2008 at 05:13 pm 1222881232
    1222881232

    It must not be a fixed rate mortgage. If it is a fixed rate mortgage, the principal paid each month has to go. For fixed, it is a simple interest formula. In other words, interest rate divided by 12 times about outstanding. So by definition, your outstanding goes down, your interest goes down, and your principal payment goes up.

    Sounds like you interest rate adjusted higher causing your principal and interest payments to be reset.


  2. ceejay74 Says:
    October 1st, 2008 at 05:21 pm 1222881674
    1222881674

    Hi merch,
    It's an ARM, and next month is the first payment at a higher rate. I just don't understand how I'm going to pay it off in 30 years if the principal goes down? I mean, an ARM is still a fixed-term mortgage so it must work out somehow, I just don't get how.

  3. merch Says:
    October 1st, 2008 at 08:41 pm 1222893676
    1222893676

    Yep, they'll work it out so that maturity doesn't change.

    Too bad you can't switch to a fix. Is this the last adjustment?

  4. ceejay74 Says:
    October 1st, 2008 at 09:10 pm 1222895444
    1222895444

    Oh heck no; this is only the first adjustment. I believe it can adjust once a year now, indefinitely.

    I'm torn; part of me wants to stop CC payment and try to build equity by paying down mortgage. Then again, 5.99% is still a pretty good rate, so maybe next adjustment won't be too bad either. Better than my personal loan at 8.99%, anyway.

    If house values start to go up I'll be able to refi. Right now my condo has lost $25K or more in value, so my down payment and payments up to now didn't give me any equity.

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