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mortgage acceleration good for you or the company offering it
My problem is that I am still trying to pay off my house. For blue-collar America a house payment is the bulk of their paycheck. I have managed to work through all my other debts. But my house payment seems to be the only debt I cannot pay off. Often I here stories of others becoming debt free in their own lives. I want to know how they did it. I want to know if I can be debt free as well. My only debt is my house debt that seems forever in length. If there is a way that I can be debt free that will satisfy my family, and me. I will use the information in this paper to put a plan into effect, a plan to pay off my home mortgage.
To start, I will gather information on: refinancing to lower my interest rate, how to accelerate my payment process, generating additional income, and how my finances are currently. The banks and lending companies will be a good source to find if I can reduce my interest rate. Going to their websites I will research the facts on what interest rates are available today. The Wall Street Journal will help to find what the current national interest rates, and interest rate trends past, and future. The problem with interest rates is that they change daily. I will use the web again and search ways to accelerate my mortgage payments. I went to my current lenders website to see what they have to offer. Then I will look into how I can increase my income. USAjobs.com, is a job website to search federal jobs. I will go to, Monster.com to see about civilian jobs. New websites may be available on the web so I will use job search terms to find these sites. My spending habits may have grown to large for my income so I can check to see if I can cut spending, which can create money to pay toward my mortgage.
When evaluating the information I have gathered, the fine print and small details will require the bulk of my attention. I want to keep focus on solving my problem. If there are costs to me in any of the processes, these costs must be beneficial to me reaching my goals. Consumers know that companies make promises that sound to good to be true. Companies such as banks and other lenders will say one thing and have a thousand comments in small print to prove their statement false. To qualify for their special deal is nearly impossible. Simply put I am trying to become debt free, I cannot accomplish this by going deeper in to debt. I also want to watch out for services charging me money to do what I can do on my own without paying them. When looking at new jobs, I want to watch out for words such as temporary position, part-time, and one year contract, unless I am looking for a second job.
When using the information to solve my problem, I would have to consider the effects each decision would have on my family and me. I need to ask questions. “What would I be giving up if decide one way or the other?” “Will I have to relocate to another state?” “Can I keep my retirement benefits and health benefits?” “Will my decision harm my finances?” I do not want to bring any hardships to my family. I do not want to be a fool and wasteful with my money. I do not want to stop all the fun activities I do with my family. When looking into one of the options to accelerate my mortgage, the mortgage company has a two payment a month plan. When I dug a little deeper, I found that the mortgage company has another company that takes my two payments and combines them to pay the mortgage company for each month. This other company charges approximately 50 dollars for this service. It makes no sense to pay for this service when I can do it myself. The 50 dollars can go toward my mortgage also. One simple source of unused or unaccounted for income is my tax refund. Each year a portion and even at times all the income tax can go toward the mortgage. Both of these solutions can help to solve my problem without a negative effect on my family or my finances.
I have looked at the many ways to reduce or pay off my mortgage. I have found that all help offered with my problem is, in fact, not help. Researching this problem has brought about unusual solutions. Factual solutions can only be brought on by the critical thinking process. Chapter three in the text says, “as you answer questions, you transform raw data into information that you can use to achieve goals large and small (Carter, Bishop, & Kravits, 2007). I know reaching my goal is possible and I am going in the right direction.