After playing with the numbers a bit, we decided that it might be a good idea to start pre-paying the mortgage on our new house. And what better time to do so than with our very first payment? We ultimately decided to overpay each month by roughly 1/12 of our payment — our current monthly payment (including taxes and insurance) is $1412.98, so I decided that $120 was a nice, round number for our extra payment — that equates to a little better than one extra payment each year.
Since the first payment went to the lender that originated our loan just before they sold the mortgage servicing rights, I logged in yesterday to make sure that the additional funds found their way to Wells Fargo Home Mortgage. But when I logged in, I learned that I had made a $174.58 overpayment, not a $120 overpayment. I double-checked our checkbook register as well as the math, and they were right — for some bizarre reason I had written the check for $1587.56 and, for the life of me, I can’t figure out why. It’s not like I was rounding off to some nice even number — rather, I had written the check for a seemingly random amount. Weird. Oh well, I guess there’ll be an extra $54.58 working for us over the life of our mortgage.
For more information on moving, check out my Roadmap for a Successful Relocation.