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From: ded@milo.UUCP (Don E. Davis)
Newsgroups: net.invest
Subject: Re: The 3% rule
Message-ID: <184@milo.UUCP>
Date: Thu, 13-Feb-86 08:41:57 EST
Article-I.D.: milo.184
Posted: Thu Feb 13 08:41:57 1986
Date-Received: Sun, 16-Feb-86 06:12:39 EST
References: <1646@wanginst.UUCP> <4948@alice.uUCp>
Reply-To: ded@milo.UUCP (Don E. Davis)
Organization: JHU/Applied Physics Lab, Laurel, MD
Lines: 23

In article <4948@alice.uUCp> ark@alice.UUCP writes:

>> One fact to consider is that there will be a month in which you make
>> NO payment, as there was when you first took out your mortgage.  That is
>> effectively money in your pocket.

>
>No it isn't, unless you want to think of it as "borrowed money in your pocket."
>For instance, we just refinanced our house.  The old mortgage had
>payments due on the first of each month.  The new one has payments
>due on the fourth (the anniversary date of the loan).  Thus we will
>make payments on Jan 1, Feb 1, March 4, April 4, and so on.

I'm confused. I thought mortgage payments were for the previous month.  So Jan 1
would cover December, Feb 1 would cover January, and so on.  If you
refinanced your house on say, Feb 15, at that time you would pay 
interest for the rest of the month (or until March 4 in your case).  Then
the next payment wouldn't be due until April 4, and it would cover interest
from March 4 to April 4.  On April 4 an all too small amount would be deducted
from your principal, and interest would begin accruing on that new amount.
That's the way it works around here anyway.  Who floated your
mortgage, the Mafia?  If not, recheck your paperwork; you may be in
for a pleasant surprise.