Sully Posted January 25, 2011 Report Share Posted January 25, 2011 Any other homeowners receive their statement yet? I just got mine and as I'm looking over it, it kind of depresses me. For last year, my principal balance went down by $1,100 and I paid just over $4,000 in interest. Sometimes I feel like cashing out my retirement to pay off the house. But, I realize that would be dumb. Quote Link to comment Share on other sites More sharing options...
Wease Posted January 25, 2011 Report Share Posted January 25, 2011 Yup, I got mine already. It doesn't depress me when I know I'll have my home paid off in 10 years, well before I'm 50... Quote Link to comment Share on other sites More sharing options...
Got-Boost? Posted January 25, 2011 Report Share Posted January 25, 2011 Start putting all your extra money towards the principal on the house... Quote Link to comment Share on other sites More sharing options...
Rotarded1647545491 Posted January 25, 2011 Report Share Posted January 25, 2011 Yup, I got mine already. It doesn't depress me when I know I'll have my home paid off in 10 years, well before I'm 50... 7 years and counting! Actually I want the hell out of this house. It's just the ball & chain and I. I really dont need a 4 bedroom house with a full basement. I NEED A BIGGER GARAGE! Quote Link to comment Share on other sites More sharing options...
Forrest Gump 9 Posted January 25, 2011 Report Share Posted January 25, 2011 Start putting all your extra money towards the principal on the house... Yup, I've always pay en extra hundred or two every months. Also try to refinance and drop it down to 15 years if you can afford. Quote Link to comment Share on other sites More sharing options...
Rotarded1647545491 Posted January 25, 2011 Report Share Posted January 25, 2011 Yup, I've always pay en extra hundred or two every months. Also try to refinance and drop it down to 15 years if you can afford. Troof! I just re-fied for 10 years at a lower rate. My payment went down $300 a month. We pay an extra $100 a month and we'll be done in a little over 7 years. Quote Link to comment Share on other sites More sharing options...
Sully Posted January 25, 2011 Author Report Share Posted January 25, 2011 Yup, I got mine already. It doesn't depress me when I know I'll have my home paid off in 10 years, well before I'm 50... I'm still fairly new on this mortgage; only like 4 years in. Start putting all your extra money towards the principal on the house... There is no extra money since I'm working on remodeling every room in the house. I've pretty much been doing one room each winter. All three bedrooms are done. The kitchen/dining room is done. Now I'm working on the hall bathroom. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 25, 2011 Report Share Posted January 25, 2011 I thought I read that if you make one extra payment per year on your mortgage, you effectively reduce the 30 yr term to 21 yrs. Quote Link to comment Share on other sites More sharing options...
BloodRed Posted January 25, 2011 Report Share Posted January 25, 2011 I know what you mean, I got mine in the mail last week. But we have only owned our house for 2.5 years. Oh yeah and since everyone else is throwing out other ideas of how to pay it off sooner, most are offering a plan where they breakdown your payments and you make a payment every 2 weeks. Baiscally you end up making an extra monthly payment each year plus paying down the prinicipal before the monthly interest is calculated and added to the balance. Quote Link to comment Share on other sites More sharing options...
ICEMAN1647545504 Posted January 25, 2011 Report Share Posted January 25, 2011 I thought I read that if you make one extra payment per year on your mortgage, you effectively reduce the 30 yr term to 21 yrs. It depends. Normally it is between 7-8 years. Yes, paying mortgage interest sucks because mortgage interest is "front loaded". That means that for the first 3-5 years of your mortgage you pay 85-90% towards interest on a 30 year mortgage depending on a few factors. IF you can, than I suggest paying extra towards the principal and that will help you pay the home earlier and pay way less in interest. The shorter the term of the mortgage, the lesser you pay in interest. Normally on a $150K 30 year loan @ 4.5% interest you will pay $146K in finance charge, and that means that you paid $296K for that house at the end of that 30 year term. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 25, 2011 Report Share Posted January 25, 2011 This begs another question, is there a fee for paying it off too early? Quote Link to comment Share on other sites More sharing options...
truckin Posted January 25, 2011 Report Share Posted January 25, 2011 Yes it's depressing to look at, also PMI F-ing blows.....I have to pay for that shit cause abunch of other retards defalt on there loans. Thanks Quote Link to comment Share on other sites More sharing options...
Sully Posted January 25, 2011 Author Report Share Posted January 25, 2011 I know what you mean, I got mine in the mail last week. But we have only owned our house for 2.5 years. Oh yeah and since everyone else is throwing out other ideas of how to pay it off sooner, most are offering a plan where they breakdown your payments and you make a payment every 2 weeks. Baiscally you end up making an extra monthly payment each year plus paying down the prinicipal before the monthly interest is calculated and added to the balance. I should go talk to my bank about this. If my overall monthly payment stays the same, then why not, right? Quote Link to comment Share on other sites More sharing options...
Sully Posted January 25, 2011 Author Report Share Posted January 25, 2011 This begs another question, is there a fee for paying it off too early? I think it depends on the company. Some may charge you and some may not. You'd have to ask your mortgage company. Quote Link to comment Share on other sites More sharing options...
John Bruh Posted January 25, 2011 Report Share Posted January 25, 2011 i got mine. 8000 in intrest. but i have a shitty rate because it was my first installment loan at 19 lol. but im selling anyways. Quote Link to comment Share on other sites More sharing options...
ICEMAN1647545504 Posted January 25, 2011 Report Share Posted January 25, 2011 This begs another question, is there a fee for paying it off too early? Most of the loans these days do not have any pre-payment penalties, but there are some old loans that have some. Quote Link to comment Share on other sites More sharing options...
kirks5oh Posted January 25, 2011 Report Share Posted January 25, 2011 i'll have my house paid off within 2 years hopefully. awesome, considering we bought the house less than a year ago, and only put down 5%. we had to get 2 mortgages to get a loan with all the irresponsible bastards out there. paid off the first mortgage a few months ago---there's no penalty for paying ours off early. we also had quite a bit of remodeling done, with new appliances, granite, gutted bath, new siding, etc etc. i won't say how much interest we paid over the year we've owned the house, but yes, it is depressing. all the more reason to pay it off sooner Quote Link to comment Share on other sites More sharing options...
black00ws6 Posted January 25, 2011 Report Share Posted January 25, 2011 Here's a great site to show how much putting extra and one/multiple lump sums affects the term of a mortgage... http://www.mortgage-x.com/calculators/extra_payment_calculator.asp We refi'd 3 years ago at 15 years and pay quite a bit extra a month.. Hoping to be paid off in 5-6 years. Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted January 25, 2011 Report Share Posted January 25, 2011 Shameless plug... If anyone is looking to refinance to a lower rate, with next to no closing costs (if you qualify) or shorten your term or pull cash out...let me know. PM or call 614-327-8085. I have helped a few people out on the board already. To answer a few questions: Yes, some lenders charge a pre-payment penalty. I do not. Some lenders will allow you to set up the bi-monthly payment...others will not. You need to call your current lender and ask. Most that I have dealt with will not as it is a hassle for their processing department and they lose money. If you have any other general mortgage questions or want me to look into your scenario, just ask. -Marc Quote Link to comment Share on other sites More sharing options...
Bahnstoermer1647545488 Posted January 25, 2011 Report Share Posted January 25, 2011 Refinance into a 20 or 15 or 10 year... 30 year mortgage is insane anyway I look at it... no balloons, no ARMs, no gimmicks. Get yourself a traditional fixed rate mortgage, period. Everything else is a bullshit creation of the financial industry trying to sell things people can't afford to people who are willing to try... Quote Link to comment Share on other sites More sharing options...
87GT Posted January 25, 2011 Report Share Posted January 25, 2011 I haven't received my paperwork yet from my bank. :/ Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted January 25, 2011 Report Share Posted January 25, 2011 Refinance into a 20 or 15 or 10 year... 30 year mortgage is insane anyway I look at it... Why? You can over-pay every month with no penalty. And, it affords you the luxury of having a lower payment in-case something catastrophic happens (loss of job etc) that would keep you from being able to make the higher monthly payment. What drives me crazy are people that do not have to escrow that choose to. Lazy fuckers giving away free money! -Marc Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted January 25, 2011 Report Share Posted January 25, 2011 Refinance into a 20 or 15 or 10 year... 30 year mortgage is insane anyway I look at it... no balloons, no ARMs, no gimmicks. Get yourself a traditional fixed rate mortgage, period. Everything else is a bullshit creation of the financial industry trying to sell things people can't afford to people who are willing to try... Ignorance is bliss. I guarantee I have an ARM program that is less than 99% of everyone on here's fixed rate...and it has NEVER gone above 5.125%. -Marc Quote Link to comment Share on other sites More sharing options...
Bahnstoermer1647545488 Posted January 25, 2011 Report Share Posted January 25, 2011 Why? You can over-pay every month with no penalty. And, it affords you the luxury of having a lower payment in-case something catastrophic happens (loss of job etc) that would keep you from being able to make the higher monthly payment. What drives me crazy are people that do not have to escrow that choose to. Lazy fuckers giving away free money! -Marc Yeah except no one has the discipline to do it... and if you're in the mortgage business, you'd say that in every mortgage (=sales) appointment knowing the vast majority of people who say they will won't, and then you'd make more interest on the longer term and still look like the good guy. Quote Link to comment Share on other sites More sharing options...
Bahnstoermer1647545488 Posted January 25, 2011 Report Share Posted January 25, 2011 LOL... listen to the loan interest slinger! Who gives a shit what has or hasn't happened in the past! Ask everyone who lost a home on a bullshit expanding rate because their falsely valued home stopped "appreciating" because "it's never going to go down..." I have a 15 year at less than 5% fixed, and as long as those deals are available only a fool would risk the bait of an ARM.... and bait it is. If you're so confident in your ARM program, why don't you fully disclose the money you and your company would make on an ARM and a traditional fixed rate mortgage? Why are you so defensive over an ARM, why wouldn't you let your customer do independant research and decide what's best for them? Quote Link to comment Share on other sites More sharing options...
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