Just a heads up though, number three is not always available. We have been making payments on the bi-weekly plan for nearly a year, it is easier to just make a payment when I get paid. There is no other financial incentive at my institution though. They let it sit unapplied, until the rest of the full payment is received. This is a recent development, and will certainly factor when we are able to refinance.
Sanita you and your family are in a very tough situation and I think this will take some VERY hard decisions to survive but it can be done.What I love is numbers never lie so….More income has to come in-here are ideas 1) ask yourself what can generate more income think radical like cleaning houses/babysitting/petsitting/cutting hair/doing laundry…the bottom line What will people pay for? 2) Next who else in the family can earn money? can the children return bottles? pick up firewood?babysit? tutor?How about husband-can he do anything like tutor law students,teach a class,give a talk on financial-divorce etc he specialty of law? or just make money for chores like raking leaves/lawn care/painting?Of course ANY expenses that can be cut would be prudent.Best of luck and don’t give up.
We did all of the above (except for the bi-weekly thing. our mortgage company just held onto the initial payment, too) and we did 3 more things.
1: We switched from living every 2 weeks to once a month. In other words, our bills are $3k a month. we saved up $3k. On the first of every month, we pay ALL the bills. It doesn’t matter when they’re due. they get paid on the first. this way, every 3 months we get an extra paycheck (we get paid every 2 weeks and there are 26 pay periods a year per person, not 24).
2: we live on less than we earn. our bills are $3k, but our take home is $5k (we’re contributing 8% to retirement right now). So $2k per month plus $5k a year with the extra paychecks is $29k a year. Not counting snowflaking and bonuses (from me) and teacher stipends (like soccer coach – from his salary). Living in our condo is so much cheaper than living in a house. we would not be able to save that much if we were in a house (extra property taxes/insurance/maintenance/buying crap for the house like shovels, flowers, shelving for the garage, etc. – knowing we’re only going to be here 5-6 years curbs our appetite for purchasing stuff to “fix-up” the condo).
3: we bought below what we could afford. While everyone else in our salary range is buying $150k homes, we bought an $80k condo. we paid it off in 3 years. And we think we’ll get $80k after closing costs since the values have gone up a little. They’re adding a train stop at our complex). WY installment loans If we cave and buy a house before we can pay cash, we’ll have more than 20% to put down and then when the condo sells, that will knock down the house mortgage even more. But I think we’ll make the 6-year wait. So a 6-year wait to have the house paid for in full? No brainer.
This is how we did your number 1 above: for the first year we were married, our entire raise went to the mortgage. Then every year thereafter, half goes to the mortgage and half goes to living expenses. So my $30 per paycheck raise, we now pay an extra $30 per month to the mortgage and $30 goes to living expenses. We do this for both salaries.