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5th Wheel Loan Payment #6

October 18th, 2019 at 05:54 am

or #1 since the refinance.

This month I managed to scrape an additional $224.01 to principal. This brings my remaining payments to 142, or 11 years and 10 months, with one of those being less than a full payment.

If amortization tables interest you, you may notice that I have Frankensteined the old and new loan amortization together. (Amortization table available for viewing under "My Pages"). It just made sense to me to do it that way.

I did receive a refund of $480.88 from my original lender. I am hanging on to $400 of it (in checking) as I have a dental appointment coming up and I expect to owe about that to the dentist. The remaining $80.88 is part of the $224.01. (I have a Health Care Reimbursement Account for medical expenses, but I have just had more of them than usual this year between some dental work and my first ever pair of prescription glasses. The money is nearly depleted for this year).

November is a 3 paycheck month so I expect to pay an additional $800ish next time. That's going to be FUN, I'm looking forward to it.

ReFi Loan is Done!

October 3rd, 2019 at 08:36 pm

Originally Published 9/20/19

I signed the docs for my re-fi today. The new terms are as follows:

Principal 45k
Rate 4.58%
Term 12 years
Payment $407.58, to be automatically withdrawn from my checking account monthly beginning 11/03/19.

They waived the $399 fee, charging me only $15 to add their name as lienholder. My current lender gave a payoff number before I made my most recent payment, so they had the payoff as $44,985.00. I should receive a refund from my current lender for $500ish once all the dust settles.

Yay, it feels good. Smile

Applied for ReFi Loan

October 3rd, 2019 at 08:33 pm

Originally Published 09/10/19

Yesterday's trip to the DMV was a success. So, with registration in hand, I submitted an application with Essex Credit to refinance my 5th wheel loan.

I expect that I may need to pay down the principal some. I bought the 5th wheel new and we all know what happens to the value as soon as it is used instead of new. I don't know the current value and I am not certain if they do 100% LTV or if it is less. Will just have to wait and see. What I do know is that I would much rather be paying 4.69% than 6.74%, so I will cough up whatever principal is needed to make it happen.

Next Step: Refinance

October 3rd, 2019 at 08:31 pm

Originally Published 8/28/19

The next thing I want to focus on in my quest to pay off the 5th wheel is to get the loan refinanced to a lower rate. My current rate of 6.74% is not horrible for an RV loan, but I feel I can do better. Reducing the interest just gets me there that much faster.

I found a lender (Essex credit, a division of Bank of the West) who will refinance at 4.69%, but I need to submit my DMV paperwork along with my loan application. Uh-oh, obstacle.

The home mail delivery is very unreliable in our neighborhood. Mail shows up late, or your neighbor drops it by because it was delivered to their house, or the most common is that it never arrives at all. Complaints have been lodged with the local Postmaster for years and years, but nothing changes. So, most people just have a PO box. We do too, and the DMV has this information, but they continue to use my home address for my mail.

I have never received my license plates, registration, or other paperwork for my 5th wheel.

My car registration expired last February, and I still do not have my new tags. They mailed me a second set in June (requested via telephone), which also never arrived. I know the first set was mailed to my physical address because they told me so on the phone. I suspect (but have not confirmed) that they did the same with the second set.

So I need to go to the DMV in person to take care of both items. I made an appointment and it is a couple of weeks away.

5th Wheel Loan Payment #4

October 3rd, 2019 at 08:28 pm

Originally Published 8/24/19

Everything is paid for August, so it was time to make an extra principal payment. It is my habit to keep 1k in checking, then "sweep" all else towards whatever goal I am working towards. This month I was able to sweep $566.96, of which $147 was from a refund for DMV fees, and the remaining $419.96 was from regular income.

So that was a good month, and I hope to manage paying a similar amount every month, until it is done.

Updated snips of the amortization table are on my "5th Wheel Amortization" page, link in my sidebar.

5th Wheel Loan Schemes

October 3rd, 2019 at 08:26 pm

Originally Published 8/12/19

Now that I have decided to make paying off my 5th wheel loan a priority, I have been thinking about different strategies to get the job done.

One strategy I intend to pursue is to get a 0% no balance transfer fee credit card loan if I can. I have Googled a bit, and have found a couple of offers for 0% for 15 months, no balance transfer fee. If I were to borrow $4,200, that's a repayment of $300 per month for 14 months (I always plan to pay in full the month before the offer ends). It adds a bit more hassle to juggle both debts, but I would save an additional $334 in interest by paying a lump sum of $4,200 up front vs. paying $300 per month over 14 months.

So I will apply and see if I am approved or not.

A second item is that I have raided my Roth sinking fund. I had been depositing 5% of my gross pay to it each payday, with the intent to contribute the money in 2020 (I had already contributed the max for 2019). I am using part of the money for medical expenses (more on that later), and the remaining balance of $1,130.81 as an additional principal payment. I will schedule the payment as soon as the money hits my checking account.

I'm In Debt Again!

October 3rd, 2019 at 08:14 pm

Originally Published 5/15/19

It would have been more practical to buy the 5th wheel our friends were selling, or some other used 5th wheel. But, I decided that I wanted the beautiful new 5th wheel with extended warranty.

So, I bought it. The same one in the pics I shared in my post "Tow Vehicle Purchased". We have not yet taken delivery. The dealer is installing a tankless hot water heater and slide out "toppers" (covers to protect the roof from leaves and dirt while the slide is out). Plus, we need to have a 5th wheel hitch installed in the truck bed. (Which of course can't happen until we get the truck back from the dealer. Grr!).

I am very pleased and looking forward to living in my new home. We will keep our current travel trailer as a "guest room" so that family & friends can come up and visit us.

My loan payments are $417 for 15 years; the interest rate is 6.74%. I have already found that a lender called Essex Credit, which is funded through Bank of the West, will refi me at 5.15%, dropping my monthly payments to $375. However, I will have to wait as they require copies of both a loan statement and DMV registration; I have not yet received either one. I had checked with Wells Fargo before taking the financing the dealer offered; WF's best rate on an RV loan is 11.59%, and goes up from there. I could not believe it. I think they must be wanting to get out of RV financing altogether.

I think I am just going to pay the loan one payment at a time and direct extra dollars into savings.