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As some of you may have read a few months ago, we did refinance our mortgage because Chase refinance mortgage rates were good.  They offered us a no cost refinance and we jumped on it.  We went from a 5.375% interest rate with Washington Mutual, got flipped to Chase, and then refinanced with Chase to 4.5%.  Since we were overpaying to $900 a month anyway to pay off our home in 10 years or less, we just continued that.  The end result will be a savings around $3500.  Not huge over the next 6 years, but who am I to turn down free money?  🙂

Refinancing Update

I was expecting something bad to happen once we signed the papers with the notary public, but everything seemed to go just as smoothly as promised.  We received written confirmation letters, emails, and even received a phone survey call.  Everything was wrapped up and squared away.  The only little thing was that due to changeover process, we technically got to skip a month of our mortgage payment.  We thought, “No biggie, we’ll just pay that $900 towards principal once the new mortgage starts.”  This did not end up being as easy as it sounded.

I logged in online and started submitting an extra payment, but the computer told me that I may end up screwing up my automatic monthly payment schedule.  So I called and the Chase customer service representative said that I’d have to make an extra principal payment in person at a Chase bank.  Okay…so I stopped by our Chase branch on the way home and asked if I could make an extra principal payment.  They said yes, I wrote the $900 check, they deposited it, and I left.

Two days later, I logged in online and saw that they put that $900 towards my following month payment instead.  It didn’t all go towards principal!  So I called.  That representative listened to my whole problem and said that it would be corrected within a week.  A week later, nothing had changed.

Choices, Choices

I was frustrated and blew it off.  Our payments went back to being automatically drafted out of our checking account as scheduled – $504 towards the payment and $396 towards principle.  I am seriously wondering if I should try making the one-time $900 principle payment again or just blow this off until we have enough in savings to just pay off the dang house, which will probably happen in less than 5 years.  I’m leaning towards that.  If we keep having a little extra money to throw towards savings every month, we may be able to chop off another year or two.  That sounds nice, easy, and then I can just write a $30,000 check and mentally tell Chase where to stick that principal payment…grrr…

What do you think?  Is it worth the aggravation to keep pursuing a $900 principal payment now?  Or should we just concentrate on a full loan payoff as soon as possible?