Refinance Saga Revisited

When we signed the papers for our refinance, we were told we would be getting a small refund check of about $250 - $300.

The check came in the mail. Only it was for $2800+!

We weren’t sure why, but actually think we figured it out. I had already paid our first mortgage payment for the month. Our loan funded on the 8^th of January and, per the paperwork with the check, we got a prorated refund for our mortgage payment.

I know we SHOULD probably put the money in savings and bulk our savings back up, but I REALLY, REALLY, REALLY want to send the whole thing towards our debt! An extra $3000 payment would go a long way towards getting us back to where we were before my dad died and the holidays hit!

I’m going to have to mull over what to do with the money.

My options are:

·        All the money being paid towards our credit card debt.

·        All the money going into savings.

·        Splitting the money between savings and debt either 50/50 or some other percentage.

·        Putting the money in savings but earmarking it specifically for our family vacation this summer.

o   I was also thinking about using any tax refund for our family vacation. But that would obviously depend on how much of a refund we were to receive.

I just don’t know. Along with our normal and “extra” payments, we will pay $2600+ towards our credit card debt. (Due to the refinance, we get to “skip” our February payment. We put half of our normal payment into savings and the other half is allocated towards our credit card debt.)

It’s good to put our options in writing and to give myself an opportunity to sort the ideas out.

I will keep you updated on what we end up doing.