dcsimg The Get Rich Slowly Forums • View topic - The HELOC and 15 day billing cycles

  GRS Home  Forum Home
Bank Rates Center
   Savings Account Rates
   Money Market Rates
   Highest CD Rates
Insurance Rates Center
  Auto           Health
   Life              Home
Mortgage Rates Center
  Mortgage Rates
  Mortgage Quotes

Last visit was:
A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Mon Sep 22, 2014 9:18 pm




Post new topic Reply to topic  [ 4 posts ] 
Author Message
 Post subject: The HELOC and 15 day billing cycles
PostPosted: Sun May 06, 2007 6:36 am 

Joined: Tue Apr 17, 2007 1:37 pm
Posts: 134
Location: Gulfport, Florida
Hi all.

I posted this in my PFJournal but since I'm looking for advice I thought I'd post it here as well:

Got my first statement from my HELOC which was sold to Countrywide Bank. It is a 15 day billing cycle.
It is an interest only payment. WTF! Wow.

And they charge $4.00 per transaction to auto deduct from your checking account!! WTF!!!

I have to pay them for the privilege of getting paid on time?
I have to pay them to have direct access to my money?
I have to pay them to NOT have a clerk in a basement to process my check?

OK! I have new incentive to pay the HELOC off ASAP.

Well so does anyone out there have this 15 day billing cycle on their mortgage?
Is this unusual? How can I work it to my advantage (assuming I have any advantage?)
This is an ARM as well. It is for $27,700. (It was my 20% down. The big one is 30 year fixed.)

I should add that all of the above is from my reading the fine print on their web page.
I haven't talked to anyone there yet. I will Monday morning first thing.


Top
Offline Profile   
 Post subject:
PostPosted: Sun May 06, 2007 11:25 am 
Site Admin
User avatar

Joined: Thu Mar 29, 2007 4:58 pm
Posts: 948
Location: Portland, Oregon
I'm confused. A 15-day billing cycle? Does this mean they're billing you twice a month?

Countrywide's a big bank, right? Big banks make me tense. I used to do a lot of business with US Bank, but they drove me nuts with their bureaucracy and their fees. I left a few years ago. I just read that their latest initiative is to get employess to wear uniforms. They think that'll improve customer relations. Stuff like this makes me cry. :cry:

I'm curious to hear updates on this, Cady.


Top
Offline Profile E-mail   
 Post subject:
PostPosted: Sun May 06, 2007 1:48 pm 

Joined: Tue Apr 17, 2007 1:37 pm
Posts: 134
Location: Gulfport, Florida
They are stating that they are doing the borrower a favor. By paying every 2 weeks you end up with an extra month's payments at the end of the year.

But since this is an interest only payment they end up with an extra month's interest from me. It's a good shakedown. I've also been thinking that it feels like I should be able to work the daily compounding in my favor since it is accrued every 15 days. I can pay the day it is billed and send $100 to the principle every 15 days. I don't know the math to back up this hunch though.


Top
Offline Profile   
 Post subject:
PostPosted: Mon May 07, 2007 1:02 pm 

Joined: Tue Apr 17, 2007 1:37 pm
Posts: 134
Location: Gulfport, Florida
Well I just got off the phone with them. The 15 day billing cycle is just for this first payment since I closed on the 16th of April. When my next statement comes in it'll say 30 day billing cycle. The autopay fee is waived for the 12 payments a year option on my loan. I don't know if they waived it because I called in or not.

So I set up an automatic prepayment to principle of $125 every month on top of the miminum whatever. Since it is an ARM I'll watch it closely. Quicken has told me to send $3000 on Oct 1st and Apr 1st as mortgage gifts on top of the $125 prepayment. The $27,7000 25-year ARM will be paid off August 1st 2010.


Top
Offline Profile   
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 4 posts ]  Moderators: bpgui, JerichoHill


Who is online

Users browsing this forum: Google [Bot], Google Adsense [Bot] and 17 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB © 2000, 2002, 2005, 2007 phpBB Group
Theme created StylerBB.net & kodeki