Figure out a plan for my mortgage.
I pay a extra on my mortgage, but bank interest payment rates are about to exceed my 4.25% mortgage interest rates I need to figure out a better plan to pay this off.
My mortgage is actually a five year ARM (this means after 5 years it becomes an Adjustable Rate Mortgage). So in November of 2008 my rate will start fluctuating (probably up). So instead of paying the extra, I'm putting it in a "Christmas Account" in the bank, when I get $1000 I'll put it in a CD and start earning more interest than the 4.25% my mortgage is charging me (4.5%-4.7% in March of 2006). When my arm is up, I'll cash the CDs and pay down the principal a little more than if I did it the other way (a lot more if interest rates keep going up). If rates go down I'll go back to the old way (and my money in the CD will be lock in at the higher rate still).