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Home > Hooray for the recession!

Hooray for the recession!

August 24th, 2009 at 11:57 pm

I'm kidding, of course. But I feel like we finally saw some kind of benefit from all the financial turmoil swirling around.

We just got notice of what our mortgage (an ARM) is going to reset to starting Nov. 1. It started at 5.0%, then reset for the first time in 2008 to 5.75%. This November, it's going to reset to 3.875%!

Last time it adjusted slightly before it actually hit, but that was an adjustment downward. Hopefully they wouldn't adjust upward after telling me the rate.

Our payment is changing from $1445.01 to $1256.24. That extra money is going straight to principal on our personal loan. With nothing going wrong for the rest of the year, we could have the loan balance at $4000 by mid-December!

Posted in Uncategorized | 7 Comments »

7 Responses to “Hooray for the recession!”

  1. creditcardfree Says:
    August 25th, 2009 at 12:18 am 1251159516
    1251159516

    That is excellent news!! You mentioned your ARM resetting before and I should have mentioned that it was possible for it to go down. My SIL had hers drop to under 5% earlier this year.

    Great plan for the difference!

  2. whitestripe Says:
    August 25th, 2009 at 01:24 am 1251163441
    1251163441

    congrats. haven't got a clue about american mortgages and what all the abbreviations mean Big Grin but since we bought our place, the fixed rates have risen from 6.2% to 7.4% - which is what we have finally fixed at. i could kick myself for waiting for them to go 'down' because they didn't! grrr! oh well, 7.4% is better than 9%! and our variable portion is 5.11% at the moment, which is good!

  3. NJDebbie Says:
    August 25th, 2009 at 02:41 am 1251168119
    1251168119

    /

  4. ceejay74 Says:
    August 25th, 2009 at 11:24 am 1251199465
    1251199465

    Thanks!! ccf, I'd heard that could happen, but it seemed like rates were creeping up during the year. I guess I forgot they went down before they went up, and they must have gone down a LOT!

    LOL whitestripe, sorry. Smile "ARM" is "adjustable rate mortgage." Mine is a 5-year ARM, which meant it was fixed at a low rate for 5 years, and now it adjusts once a year based on the current interest rates. No portion of my mortgage is fixed; it's all variable and will change once a year. I hope to someday refinance and get a new mortgage that is all fixed-rate, but your home has to be worth more than you owe, which is unfortunately not the case since the value of ours plummeted.

  5. Broken Arrow Says:
    August 25th, 2009 at 12:44 pm 1251204247
    1251204247

    Glad to hear it! Thinking about maybe locking it down eventually before interest rates go up along with the ARM?

  6. North Georgia Gal Says:
    August 25th, 2009 at 01:42 pm 1251207767
    1251207767

    Great news!!!

  7. ceejay74 Says:
    August 25th, 2009 at 02:22 pm 1251210160
    1251210160

    BA, I always planned to. But I'm $17K underwater and feel like I should get rid of other debt before I try to pay down the mortgage. So unless our building sees a huge upswing in values, I don't see it happening.

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