I hurt. I've been walking around all day like I have rheumatoid arthritis, but it's mostly because my quads don't stretch right now. I'm thinking I might have to wait until Wednesday morning to go back. Tomorrow morning might be too soon, and tomorrow night I'm meeting with my financial planner.
I had my yearly evaluation today, which went pretty well. My raise was a lot higher than I expected, which was nice, considering how nervous I was with locking into a higher mortgage payment with refinancing. When I bought the house, I only had about 3% down, so I wasn't eligible for a fixed rate and I signed up for an ARM. Dad has been worried about me ever since, so this will be a load off his mind as well as mine. I've been going along for the past five years at 5%, and it was going to reset next June. Rates are about as low as I think they're going to go, so I snapped up the 6.25%, which is the same rate I'm paying on my second mortgage, and still lower than what I think the ARM would have reset to. I'm shaving six years off my loan with the higher payment, too, to make up for the higher rate.
In other geeky news, I was way too excited about being able to incorporate the Fannie Mae/Freddy Mac situation into my lecture today on debt and off-balance sheet obligations, and how the whole debacle was set off by a draft of a new accounting pronouncement by the Financial Accounting Standards Board. Way too excited.
Also, spent my lunch break re-jiggering my budget. Free time, how I spend thee...let me count the fiscal responsibilities.
posted by Amanda @ 9:32 PM
4 Antiphon:
I would comment, but your post went totally over my head. Move here and take care of my finances. Please?!
I can say though...yay for low interest rates. Mike and I bought our house with an ARM, then 2 years into the mortgage refinanced with a 15 year fixed. Amazingly 2 more years in and the principal part of the payment passed the interest. We held a party that day and every month since then principal goes up 2 bucks, and interest goes down. Woo freakin' hoo! Our first house was a 30 year fixed and when we sold it 5 years later I think we had about 15 cents worth of equity in the home. The rest of our mortgage payment had gone to ITI. Of course, there was appreciation, but still, interest was a huge chunk of the payment.
I don't really understand anything money related, but this whole Fred/Fan thing is all they're talking about on NPR. It sounds like you tapped into the positive part of it, so good for you!
We are hoping, when the time comes, that we will be able to put at least 15% down, hopefully 20%, depending on the cost of the house we find. Of, course I don't want to put all our savings into the down payment, so it may not be an option. I don't want to not have a savings account again. That was not fun. I hate money sometimes.
I didn't understand a word of this whole thing...
Summer vacation does wonders for my brain... lol
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