Hey, folks, speaking of mortgage payment rounding, I will share with you all something that is happening right now with mortgages.
A year ago I relocated and took a mortgage instead of using equity and investments to buy property. I thought rates were great then at 3.75%.
A few days ago my banker told me that mortgages are going for 2.75% right now. We did some research and it seems that rates have not been this low since 1971.
Yesterday he did a parking lot closing for me on my new mortgage at 2.75% and my money in the market is earning 7.03% annualized. The mortgage payment is made from the investment earnings, I get a tax deduction for the interest, homestead exemption on property taxes, and still have my money in the market. My only cost to refinance was $425 for an appraisal for their records.
If you have a mortgage, you might benefit from doing a refinance, depending on what you current rate is. I've done this four times now, and my accountant says it is a good process.
Another thing you can do to probably lower you interest cost is to make you mortgage payment every month 15 days before it is due. If you compare an amortization schedule with the breakdown on your statement, you can see the difference between projected and actual interest. I have the payment made automatically from the investment account each month so there is no payment to remember.
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