Quick question to all.
No closing time yet
Other stuff.
I pay doublepayments on my car. I am so far ahead I do not have to pay anything at all until 6/2015. Interest rate 3.15. Left to pay .. around $17800. Months left at doublepayments -17.
With the new payment for the house.. I will have a very difficult time saving .. especially once I lose the 2 flat.
I was considerinng stopping payments on the car (total cost of this for a year is a $600 interest charge that will accrue) and instead use the doublepayment amount ($1008) each month to quickly build up my rental emergency fund to $15k and my other emergency fund. With the house payments I want to be as safe as possible.
Thoughts?
For those that do not know.. my house payment will be very high (12% hard money lender) for a yearish and then I can refinance out with a normal rate/cost loan.
Rachael
Quick question-delay car payments?
January 30th, 2014 at 08:20 pm
January 30th, 2014 at 08:30 pm 1391113815
January 30th, 2014 at 08:34 pm 1391114055
January 30th, 2014 at 08:39 pm 1391114363
January 30th, 2014 at 09:01 pm 1391115692
January 30th, 2014 at 09:12 pm 1391116336
January 30th, 2014 at 09:26 pm 1391117204
If you are not allowed to pre-pay the principal, then you have paid ahead and are receiving no interest credit for having done so. You could skip all the payments you have prepaid, and in theory, you should not accrue any additional interest.
NEVER, EVER take a car loan that does not allow you to pre-pay the balance. The effective rate of your loan is much higher if you prepay one of those, because your lender is investing all those extra payments, not you. They still collect all the payments, but they get them earlier.
January 30th, 2014 at 09:45 pm 1391118359
January 30th, 2014 at 10:20 pm 1391120447
You are right! they were not applying them toward principal. I can call and hvae them do so (regional office). I will call and find out but may not have it all applied (made 16 overpayments) because if it is all applied my payments start becoming due again. Thanks for the catch.
January 30th, 2014 at 10:30 pm 1391121011
Why are there not tax implications when you are selling short? Can you tell us more about that?
January 30th, 2014 at 10:42 pm 1391121773
January 30th, 2014 at 11:04 pm 1391123045
I asked lender to apply only $3000 of my overpayment towards principal.. the rest of the overpayment $6000+.. I will let go towards future payments so I can skip payments this year and quickly get those 2 emergency funds to the max..
I know I have this car to sell but I am 'saving
it' for worst case so I have something and trying to rebuild funds in the meantime. I did some numbers and can almost fund the rental emergency fund in full ($6500 left to fund) in the next 6 weeks.. and then will start on normal emergency fund..also about $6500 to fund. The other car .. Genesis. is not realistic to drive in the winter either.. it got stuck in the driveway last week. it has an awesome ride but is rear wheel drive.
My work contract is up 6/13 but they should be letting me know if I am being extended in April and some delays in projects I am on is making that more likely. I will ask for a year extension.
Thanks for the help!
Another thing learned (that car loan).. I learn so much here
January 31st, 2014 at 12:05 am 1391126758