Why I am OVER having a Mortgage

No I haven’t paid my mortgage off. I am just so annoyed with my current mortgage company. As of 2010 it is a California law that you must have an escrow account. So I pay my bank monthly to set aside money to make annual payments to my home owners insurance and county taxes. For some reason my escrow account went from its normal $120 a month to $291 last month. What the heck is that about??? When I called the mortgage company NO ONE could give me answers. They gave me other numbers to call to figure things out. We all know how that game goes. And get this, neither my homeowners are taxes went up.

When we first bought our house we were told that manufactured home loans are expensive if you don’t own the land. It made sense to me because there wasn’t much for collateral. So for the last 3 years we have been paying 10.25% interest on our home. Yes, you saw that correctly it’s in the double digits!

After last month’s issue with our escrow account I decided enough was enough. I went online and started researching companies that refinance manufactured home loans. I found one and we applied. Long story short our home loan will soon be 5.7%.

This refinance will cost us $2021, most of that will be rolled into our home loan. But if you compare it to the saving we will incur over the life of the loan that is chump change. Oh yes and we are changing the loan from a 20 year loan to a 10 year! Our actual payment will not go up very much due to the drop I interest. It is amazing what an interest rate can do for you.

If we make only the minimum payment on our new loan we will pay only $25k in interest over the next 10 years. Had we kept our old loan we would have paid over $100k.

I could kick myself for not looking into this sooner! I just hope we can throw any extra cash we come across at this mortgage. I am so over owing people money!

My advice to others… Always keep your eyes open and NEVER get comfortable with any payments whether it be your cable company, garbage company or a loan. A 10 minute call can save you $100’s of dollars a year (I just called Directv a few days ago and got free showtime and monthly savings!) The weeks hassle with paperwork will save my family $75k, so glad we looked into refinancing!

❤ Sarah




7 thoughts on “Why I am OVER having a Mortgage

  1. Great advice and I am so happy for you that you could refinance and get rid of your crummy mortgage company! 🙂 I am a little envious, I despise our mortgage company! We only have a few more years though. We can do it! LOL.

    • I’m just wondering if there are any good ones out there? This is why it would be neat to pay for cash for everything then you don’t have to be on “their” terms. These next couple years will fly by for you!!

  2. I cant’ believe they can’t give you a solid reason as to why the rates went up. My first thought, of course, was homeowners insurance, but if that’s not it, I would swap companies too! Good for you and getting fed up with goofy people and goofy rates!

  3. $100k in interest! That is completely insane. I don’t have any knowledge of the home owner game or even loans for that matter, but that seems extremely unreasonable. I love it when you get a good deal on TV or internet. I always search for good deals. If you are polite and adamant you can get a good service rep that is willing to give you want you want (cheaper rates). 🙂

    • It is, imagine if our house was more expensive it would have been an outrageous amount of interest!

      Im always calling customer service! If I can’t save money I at least end up with some movie channels!

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