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Archive for October, 2015

Mortgage Lending Nonsense

October 26th, 2015 at 09:45 pm

Just for giggles, I took a moment to read a junk e-mail I received today. What a sales pitch! The title of the e-mail is "How to SKIP a mortgage payment for no cost!" and begins by lamenting that the holidays will soon be upon us, along with all the stress of how to pay for them. Thankfully, these self-titled "longtime mortgage advisers and consumer advocates" have a "strategic option that could PAY FOR YOUR HOLIDAY SEASON - without increasing your credit card debt!"

Isn't that wonderful? Here is their solution, direct cut and paste:


Current Mortgage:
Two years ago you financed $250,000 at 4.25%
Principal & Interest (PI) = $1230
Taxes & Insurance = $400
Monthly Payment = $1630
Current Escrow Balance ~ $1600
Estimated remaining balance $241,388

You could net approximately $1230 + $1600 = $2830 during the holidays with no closing costs !

Refinance at 4.25% (choose a rate to allow lender to pay all your closing costs)
New Loan is $241,388 plus new escrow account plus one months interest to allow you to skip a month. $241,388 + $1600 (escrows) + $853 (30 days interest) = $243,850 new loan amount

Yeah, I believe I will NOT be taking advantage of their helpful strategy, even though they are "consumer advocates". Rolleyes

Car Payment #11

October 21st, 2015 at 11:07 pm

My eleventh scheduled car payment has posted. Still no point in updating the spreadsheet.

This month extra principal payments included $180 from my part-time job and $62.81 from credit card rewards. I am realizing I have not had a payment from HauserNet in several months. I will have to check on that. They aren't large sums, but I am of the opinion that ANY chip is a good chip.

Next month the balance will break 10k, so I am looking forward to that.

Seventeen payments have now been eliminated from the end, leaving 44 payments to go.

Weekly Box of Organic Produce

October 18th, 2015 at 01:56 am

We decided to join a CSA and get a box of organic fruits and veggies each week.

I was torn between a small very local one and a slightly more expensive larger one. I decided to give the larger one a try first as you do have the ability to customize your box and exclude things you just don't want.

The CSA we are trying is called "Farm Fresh To You".

They will not deliver to my home (no deliveries in the area) but will deliver to my office. My office is close to the freeway, so I assume that is why.

Our first box will be delivered this Wednesday and will contain:

3 Bartlett pears
1 butternut squash
2 Fuji apples
1 lb green beans
1 lettuce (either green or red leaf)
1 bunch Nantes carrots
1 bunch red kale
1 lb. white potatoes

The base price is $26 but this box is $28.19. When you substitute, they charge by the lb. Our box was supposed to contain red radishes and kiwi. We took them out and put in green beans, pears, and potatoes.

This is the smallest box, they also have 3 larger sizes. We will see how we like the service and quality, then decide if we want a bigger box.

The more local CSA is a bit lower priced, but charge a fee if you have your box delivered to your door, which would make it slightly more. Alternatively, you can pick up your box at a drop off point. There is one just a few blocks from my office, so that would be convenient.

With the more local CSA, you choose either a full share of veggies for $22 or a half share for $17. The full share is supposed to feed 4-5 people for a week, the half share 1-3 people for a week. Then they have a fruit box which is $16 for a full share and $8 for a half share. I have a friend who gets a half share veggie box each week and she says the produce is excellent.

We have agreed that we will do our best to not let any of the expensive organic produce to go to waste.

BF's House Back In Escrow

October 16th, 2015 at 02:10 am

This has been Mr. Toad's Wild Ride. But for the second time, the house is in escrow. The agreed upon price is 950k.

I have been very surprised by some of the people who have been interested. One man submitted an offer with no financial information. BF told him, via his realtor, that he would not consider any offer at any price without documentation showing the buyer is able to purchase. The gentleman said oh, of course, he would send that right over. After 3 weeks, without ever having submitted any documentation, he withdrew his offer.

Another woman made a "cash" offer. She claimed she had had over 2m in cash in various bank accounts. But alas, she had been the victim of identity theft. Someone had been doing business under her SSN and when she failed to report the revenue, her bank accounts were seized by the IRS. But this horrible fraud was all straightened out now, and happily she has a letter stating her money will be returned to her on a specific date in October. When asked to show that letter, she did produce one. However, it states she has a hearing on that date. You notice how a hearing is not the same as cash? Yeah, I noticed that too. The matter is not resolved at all.

There was another written offer which was too low, so BF declined it. There was no negotiating as the couple had offered the absolute pinnacle of what their lender said they could afford. They are fortunate BF said no. As we all know, spending every last cent the lender will allow is a recipe for disaster.

Hopefully, this time the sale will close without a hiccup. Oh please, oh please, oh please.

Mortgage chips To Date

October 5th, 2015 at 06:47 pm

I have made my scheduled mortgage payment, along with an extra $3.98. I received another $25 credit from WF Home Rewards Visa. My new balance is $167,950.00.

Chips to date: $1,787.56

Interest savings this month: $6.41

Interest savings to date: $112.91

Eventually, the interest savings on the chips I have already made will compound to $3,828.01, provided I own this house until the mortgage is paid in full. Which I won't. Stick Out Tongue

I did not update my "My Mortgage Amortization" page, since the pics won't upload anyway.

Next month should see another $25 chip from credit card rewards.

Net Worth 9-30-15

October 1st, 2015 at 11:52 pm

Cash is up. Smile
Debt is down. Smile
Investments are down. Frown
Home value estimate is down. Frown