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Unexpected money and I finally got a hair cut

May 11th, 2011 at 11:36 pm

I went to the city today to finally get that haircut that I'm in desperate need of. Then afterwards I meet up with Dh for lunch. The weather today is terrible but it was good to get out of the house.

Today we received a cheque in the mail worth $300, this was unexpected money. I don't remember getting info about this, neither has DH. This was for a "special" dividend for one of DH's stock. Normally he has a DRP for this stock but for this special dividend it does not qualify for DRP. Either way we will take, it is 100% franked already too.

I will have to wait tonight to talk to DH on what we should do with this money. Right now I'm thinking mortgage. DH will probably want to re-invest it, it will be his decision since it is his stock.

On another news, our interest only mortgage has ended, so we are now variable which is roughly $1800 a month. We do intend to keep paying more than this.

2 Responses to “Unexpected money and I finally got a hair cut”

  1. Jerry Says:

    Did it lead to a big change when your interest-only payment ended? We avoided an ARM-type mortgage for that reason, but we were in a different financial situation... we just needed the insurance of a steady payment over time. Hey, nice to get an extra 300 bucks when you aren't expecting it! Smile Jerry

  2. Shiela Says:

    I don't really know what ARM-type mortgage means, I don't think we have that in Australia. Our interest rate hasn't increase for the last few months. We have a variable rate even when it was interest only, so it went up/down depending on the national interest rate. The difference now that we are no longer interest only is that we are now force to pay a fixed amount which will now include some amount that will go towards the principal. Since we have prepaid a bit of our home loan even when it was interest only, quite a bit of our payment will now pay the principal.

    The reason why we opted for interest only loan for the first 5 years when we refinance our mortgage is to give us a bit of room in the cash flow area. At that time we were just recovering from a 1 1/2 unemployment. So we wanted a bit of cash fund just in case of emergency. Our home loan also had a prepayment with a redrawal option if we need that prepaid money back. To us it gave us an option, just in case.

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