Busy Day
I finally got around to opening a 180-day CD at Millennium Bank. I had to wait for money to electronically transfer around, but today was the day. I have moved the Save-O-Meter to 50%, though technically I’m about 7 dollars short. NCN Network has the more accurate figure at 49.83%.
Prime Rate, From the Chicago Fed’s handy online glossary
The interest rate charged by leading banks to their best, most secure customers. The rate is determined by the market forces affecting a banks’ cost of funds and the rates that borrower will accept.
While I was at the bank I saw the rate card for HELOC’s. It’s much better than the rate I am getting from my original loan. I am considering applying for it on Monday or Tuesday next week. They have Prime - 1.0%. I believe I’m paying Prime + ~1.2%. For all the hassle, I think it will be worth it. I don’t need more credit, I just want to retire the old loan to get a better rate. I am wondering if there is any penalty if I do that. Even if there is, I believe that the monthly savings in interest will be worth the change for the duration of the loan.
While shopping around for rates on Bankrate.com, I noticed that a small player like Millennium doesn’t show up on their regional rate surveys for either the 6 month CD or the HELOC. There are Prime - X% rates out there, but few places are offering a full percentage point less than Prime Rate.
SingleMa wrote:
CONGRATS on the increased savings! I’m following your progress sis, keep up the good work!
One question. Why $4,000? Are you saving for your ‘06 Roth?
Posted on 25-Mar-06 at 1:01 pm | Permalink
mapgirl wrote:
Thanks for the encouraging words.
I’m saving it up because I have no cash cushion if there was an emergency of some sort. I’ve never built one up ever. That’s why it’s a short term CD, just in case I need it. I’d love to add money to my Roth, but I’d bump my 401k contribution back to the max before contributing to a Roth.
Posted on 25-Mar-06 at 1:44 pm | Permalink
My Financial Journey wrote:
but I’d bump my 401k contribution back to the max before contributing to a Roth.
Why is that?
Posted on 26-Mar-06 at 1:05 pm | Permalink
mapgirl wrote:
Because if I max out my 401K plan, I will be paying less in taxes. I don’t have a Roth 401k, and from what I have seen of the early reviews, they’re not very good.
Posted on 26-Mar-06 at 4:59 pm | Permalink