Own Your Home Faster and Cheaper

I was just over on the ING Direct site looking at a table of interest rates while lamenting the pathetically-low return we're getting on our savings and checking accounts over there, when I scrolled down the screen and did a double take.

Currently (as of August 28, 2010), on their Easy Orange 5 year loan, ING Direct is offering a rate of 3.125%, and on their new Easy Orange 10 year loan, the rate is 4%.

Let me say up front that neither my wife nor I own any stock in ING or have any affiliation with them beyond having our accounts there -- we get nothing from new customers or new loans.

We signed up for our Easy Orange 5 year loan back in April and haven't looked back.  The closing costs were comparable to other closing costs on the refinance, perhaps even a bit lower that what I would have expected.  You make a payment every two weeks, and you have to do it electronically through their web site -- if you send a paper check, they sock you with a fee ($15, I believe).  Your payment amount is based on a 30-year repayment schedule (they figure out what you would pay per month over 30 years, and then divide it by two, giving you your every-two-week payment), though the loan is only for 5 or 10 years.

Your rate is locked in for the term of the loan, and at that time, you either owe the remainder of your balance, or else -- for a fee equal to two of your monthly payments -- you can lock your rate in for another term at whatever the going rate at the time is. 

The best part (and part of why I love ING Direct so much), is that they encourage prepayment of your loan and paying your mortgage off sooner rather than later.  Their only prepayment penalty occurs if you pay the loan off within the first year you have it -- after that you're home free. 

Having used the Easy Orange for several months now, I can honestly say this is the nicest loan I've ever tried to exterminate from the face of the Earth.  If I make a payment from another ING Direct account (usually my checking), the payment applies immediately, as in two seconds (literally) after I make it.  I can make extra principal payments at any time (I once made three in one day, just to test the theory).  If you're not a crazy debt-reduction-ninja like my wife and I, you can also set up recurring payments to happen every two weeks so you can just forget about it and let it go on its merry way.

So, as someone who has used the Easy Orange, I think it's a great way to try to obliterate your mortgage.  Go to the ING Direct site, click on "Learn More," then click on Easy Orange, and you'll find some calculators to help you estimate your closing costs and monthly payment.  Compare it to your current loan and rate and see if it's worth it, then start kissing that mortgage goodbye!

If you have any questions or comments, just post them below.

What do we do with our extra car?

When was the last time we drove our old car?  That's a very good question.  We think it might have been back in May, but we're not quite sure.  We do know the check engine light came on last time we drove it, and we've not done anything about it since.

Jason and I go to many of the same places each day, so carpooling only makes sense.  It saves money on gas, and it gives us time together during our hectic schedule.  It's a great time and place for us to talk about our day, our future, or just about anything else we need to talk through without the distractions that await us at home.

We've kept our little red car that served us faithfully for years even after we purchased a second car (a new Honda) in case our new car ever broke down or there might be a time when carpooling would be impractical.  However, the carpooling is just about always practical for us. 

However, the cost of insurance and license fees over the course of the year add up to more than we might spend on a car rental if an emergency arose.  So, why are we keeping it?  We don't know.  What are your thoughts?  Please let us know in the comment section below.

Yeah Toast!

I hope Bob and Tom don't mind me stealing their song title for this posting, but I just really love toast.  It's cheap, easy to prepare, and goes with just about everything.  This summer, Jason and I enjoyed a lot of easy, frugal, and delicious meals because of this crunchy treat.

The first thing to consider?  Every time you throw away food, you throw away money.  This includes the moldy leftovers, the residue on the inside of a condiment jar, and those heels of bread that no one seems to want to eat.  It is a very rare occasion that Jason and I put food into the trash can.  I can't put food into the trash without visualizing the money that it represents.

For example, you can add milk to an "empty" chocolate (or any other flavor) syrup bottle, shake it up, and have a fabulous drink right out of the bottle.  (It feels so wrong, but it tastes so right).  You can add a little olive oil and vinegar to an "empty" mustard container to make a tasty salad dressing.  Actually, most condiments can be turned into salad dressings under the right conditions.  It's fun to get creative with it!

But this posting isn't about salad dressing.  It's about toast!  (Did I mention I love toast?)  Bread kept in the fridge tends to stay good for a crazy long amount of time.  I don't think I've seen mold on my refrigerated bread in the ten years of our marriage.  I'm also not fond of my PB&J served on the heels of the loaf, so we tend to get a collection of them in the fridge.  Here are a few uses for our doughy friend:

• French Toast
• Cut them into cubes and make croutons
• Toast them until completely dry, roll them with a pastry roller, and have bread crumbs for recipes
• Use to keep baked goods fresh at home or when shipping a care package
• Bread Pudding (Yum!)
• Fancy Meals

What I mean by fancy meals is cutting my toast diagonally so I get four triangles.  I place them in my toaster oven so they get nice and crispy.  While it's toasting, I wander around the kitchen looking for things to go with my fancy toast points.  Just about any left overs work.  I also like beans (Beans on toast is great British Recipe.  Look it up and try them).  We also like to use hummus, guacamole, sliced avocado, melted cheese, cold cuts, etc.  You get the idea.  The point is to get a delicious, healthy, fun meal without buying anything special.  It's best to just use what you already have around the house.  I place a priority on any leftovers that might spoil soon.

It's super simple, but you have to be in the mindset that you will not tolerate waste.  It isn't just about saving money.  It's about being responsible with the resources we have available to us.

What other fun uses do you have for the heels of bread, or any other item that might normally get thrown away?  Let us know in the comment section below!

Farewell Land Line

For a while, we've wondered if we really needed our land line.  Jason carries a cell phone, and that seems to be how we do most of our telecommunicating.  We had two obstacles.  1. We got a better deal on our DSL because of the land line.  2. If one of us was at home and the other was out with the cell phone, we'd have no way to call 911 if the house caught fire, became burglarized, or was invaded by insane aardvarks.

Our Crazy Cell Phone Scheme

We looked at some other options.  First of all, Jason's dad already had a plan through Verizon that would allow him to add a line for 9.99.  He had made us an offer to do that in the past, but we declined on principle.  On what principle, we can't remember, but it seemed like a good idea at the time.  We decided to compare what taking him up on his offer would do for our bottom line to what we were currently paying.  Here is how much we paid for DSL, phone line, and a cell phone:

Phone (Including taxes and fees) - $33.55
DSL High Speed Internet - $28.00
Verizon Wireless (one phone, including taxes and fees) - $46.13
Total Cost - $107.68/Month

To lower this cost, we went with Jason's family to Verizon and added two lines to their account.  The first one was Jason's current account, and the second went on one of our old cell phones we'd never gotten around to donating.  This second phone will replace our land line for emergencies, but has features our land line does not have such as voice mail and the ability to leave the house, city, state, etc.  Jason also upgraded on his phone the number of texts he can send/receive.  With the upgrade, the second line, taxes, and fees, we expect to be sending Jason's dad about $40/month (less that what we're currently paying for one phone with a less comprehensive plan).

This morning, we called ATT to cancel our land line, knowing our internet would likely go up $7/month.  After we got that set up, Jason asked the representative if they could give us a little "something extra" for being such loyal customers.  The result?  We get the first 3 months of service for $14.95 instead of $35.00.  That price includes everything, so there are no added fees or taxes to consider.  Here are our new totals:

DSL High Speed Internet - $14.95 for three months, $35.00 after that
Verizon Wireless Cells for Home and Away - $40.00
Total - $54.95/First Three Months - $75.00/Thereafter

Just those two action will save us $30-$50 per month, and will add up to $427.31 over the next 12 months.

The Next Step

You'd think I'd be satisfied with that result, but I'm not quite done.  When these three months are up, I'm going to call ATT back to see if they will continue us at the promotional rate.  If they won't, I'm going to ask if we can sign up for a 2-year "term."  Oftentimes, there is a better rate available if you ask for this, although they tend not to advertise it.  This is not like a cell phone's 2-year contract.  Instead, it just shows you intend to stay with them, so they guarantee you a better price for two years.  However, you can cancel at anytime with no penalty.  Be sure you check the terms before you agree to any add-ons or special rates.  It might be good in the short term, but there can be a nasty surprise later down the line.

If you know and trust someone who has the kind of wireless plan that lets them add someone new for cheap, it's worth looking into.  If nothing else, you could each get the same plan together, split the cost, and probably both of you would benefit from a lower bill.  It should go without saying, however, that your relationship needs to be the kind where you can deal with money together without it hurting your friendship.  

In short, there are a lot of creative ways to save money.  Jason told me at lunch that this latest action made him feel we were really serious about eliminating this debt.  I have to agree.

How else can we all save money on a month-to-month basis?  Let us know in the comment section below!