I've been so long-winded that some of my particulars are quite a few pages back now so here is a quick summary of my housing costs and loans:
Well what they GAVE me was : $139,000
(27,700) in a 25 year ARM at 9.5% for the 20% = $242/month
(111,150) in a 30 year fixed at 6.625% for the 80% = $1062 includ tax/ins
What YNAB and Quicken and I are opting to PAY is
$1062 to the fixed for 36 months while I send an additional $125 to the HELOC every month *and*
on October 16th and April 16th of EVERY YEAR an additional $3000 to the principle.
That is 6K off the principle annually.
That 18K in 3 years plus the $4500 (36 months of $125) = $22,500 in principle reduction in 3 years.
The rest of the balance is taken care of by the minimum payments they are asking for.
On April 16th 2010 the HELOC is retired.
On June 1st, 2010 I begin sending everything I sent to the HELOC to the Fixed Rate mtg along with the
3K every 6 months.
Voila: June 1st 2017 the Big mortgage is paid off.
I hope this helps clarify what size boulder I'm pushing uphill.
And the ARM is indeed a HELOC... I paid under appraised value for the house so I qualified. But I put the checks that come with it in my safe deposit box at the bank. I'll not use them except in case of EXTREME emergency and when the loan is retired I'll close that account.