Mortgage

Baja28

Obama destroyed America
A. That website is going to inundate you with offers from banks.
B. Why don't you just double up your current payment?
 

Makavide

Not too talkative
talk to your mortgage provider. Tell them you are looking at different lenders for better rates, and ask them if they are willing to reduce your rate with out the hassle of refinancing. You won't get the lowest rate available, but you may get a lower rate with out the closing costs. I did that about two months ago and went from 4.4 to 3.8.
 

DoWhat

Deplorable
PREMO Member
talk to your mortgage provider. Tell them you are looking at different lenders for better rates, and ask them if they are willing to reduce your rate with out the hassle of refinancing. You won't get the lowest rate available, but you may get a lower rate with out the closing costs. I did that about two months ago and went from 4.4 to 3.8.
:yay:
 

DoWhat

Deplorable
PREMO Member
But you are old enough that your house should be paid for and not looking at a refi!

Less than 3 years and I should be debt free by the age of 50.....unless I buy that new JD tractor for the farm next month...

I wish.

Awesome.
But you still need to buy JD.
 

acommondisaster

Active Member
talk to your mortgage provider. Tell them you are looking at different lenders for better rates, and ask them if they are willing to reduce your rate with out the hassle of refinancing. You won't get the lowest rate available, but you may get a lower rate with out the closing costs. I did that about two months ago and went from 4.4 to 3.8.

And get the amortization schedule; pay the principle down according to the schedule. Even if you don't do it each month, every bit helps.
 

itsbob

I bowl overhand
A. That website is going to inundate you with offers from banks.
B. Why don't you just double up your current payment?

Doubling up your payment doesn't reduce your interest e
rate.. is it better to double up payments at 4.8 or get a 15 year at 3?
 

acommondisaster

Active Member
Doubling up your payment doesn't reduce your interest e
rate.. is it better to double up payments at 4.8 or get a 15 year at 3?

I'm no good at the math of it. If he doubles his payment, he needs to specify that the extra payment all goes to the principle - some lenders dont automatically do it, and some put it in escrow.
 

Baja28

Obama destroyed America
Doubling up your payment doesn't reduce your interest rate.. is it better to double up payments at 4.8 or get a 15 year at 3?
Doing a quick online mort. calculator...

  • $200K for 30 yrs @ 4.8% = $1182.66 (includes .8% for property taxes)
  • $200K for 15 yrs @ 3.0% = $1514.50 (includes .8% for property taxes)
So, based on the above, I would say doubling up your payments on a 30 would be better, and pay off the loan quicker, because any additional you pay has to be applied to the principle by law thus by reducing your principle, you are paying interest on a lesser amount.

I'm no good at the math of it. If he doubles his payment, he needs to specify that the extra payment all goes to the principle - some lenders dont automatically do it, and some put it in escrow.
No you don't need to specify this. According to the banks I've dealt with, they are required by law to apply it to your principle.
 

getbent

Thats how them b*tch's R
Doing a quick online mort. calculator...

  • $200K for 30 yrs @ 4.8% = $1182.66 (includes .8% for property taxes)
  • $200K for 15 yrs @ 3.0% = $1514.50 (includes .8% for property taxes)
So, based on the above, I would say doubling up your payments on a 30 would be better, and pay off the loan quicker, because any additional you pay has to be applied to the principle by law thus by reducing your principle, you are paying interest on a lesser amount.

No you don't need to specify this. According to the banks I've dealt with, they are required by law to apply it to your principle.

Interesting. I pay my mortgage online and it has a separate part to mark how much extra, if any, goes towards the principle.
 

itsbob

I bowl overhand
Doing a quick online mort. calculator...

  • $200K for 30 yrs @ 4.8% = $1182.66 (includes .8% for property taxes)
  • $200K for 15 yrs @ 3.0% = $1514.50 (includes .8% for property taxes)
So, based on the above, I would say doubling up your payments on a 30 would be better, and pay off the loan quicker, because any additional you pay has to be applied to the principle by law thus by reducing your principle, you are paying interest on a lesser amount.

No you don't need to specify this. According to the banks I've dealt with, they are required by law to apply it to your principle.

By my simple calculations

30 year mortgage at 4.8% will cost you $426,000 ($1182 a month) $426,000 for a $200k home

Doubling up payments on a 30 year mortgage at 4.8% ($2,200 month) = $252,000


A 15 year Mortgage at 3.0% ($1,514 a month) = $272,520

If you can afford the outlay of a double mortgage payment it is more beneficial (not counting the lost tax savings) but in reality in most peoples lives an additional $400 a month and a 15 year mortgage would be more viable.. and still save close to $200,000 over the life of the loan.

I'd much rather pay 272k for a 200k home, than 450k for a 200k home.. Of course in my fantasy world I'd much rather pay 200k for a 200K home..
 

Baja28

Obama destroyed America
By my simple calculations

30 year mortgage at 4.8% will cost you $426,000 ($1182 a month) $426,000 for a $200k home

Doubling up payments on a 30 year mortgage at 4.8% ($2,200 month) = $252,000


A 15 year Mortgage at 3.0% ($1,514 a month) = $272,520

If you can afford the outlay of a double mortgage payment it is more beneficial (not counting the lost tax savings) but in reality in most peoples lives an additional $400 a month and a 15 year mortgage would be more viable.. and still save close to $200,000 over the life of the loan.

I'd much rather pay 272k for a 200k home, than 450k for a 200k home.. Of course in my fantasy world I'd much rather pay 200k for a 200K home..
Right but what we're not accounting for here is amortization. That when we apply more to the principle, it goes down, and the more it goes down over time, the less you pay in interest. So I think if you could afford to double up (or just pay more) on a 30 year, you will still come out way ahead.
 
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itsbob

I bowl overhand
Right but what we're not accounting for here is amortization. That when we apply more to the principle, it goes down, and the more it goes down over time, the less you pay in interest. So I think if you could afford to double up (or just pay more) on a 30 year, you will still come out way ahead.

What I forgot to add was that piece..

When you double up your payments your house is paid off in a little less than 10 years, just for the reason you state. Saving over 170k in interest payments
 

acommondisaster

Active Member
No you don't need to specify this. According to the banks I've dealt with, they are required by law to apply it to your principle.


We haven't done this on our current home, however I know our first home they applied it to the next month's payment and another time to escrow. We had a bit of difficulty because of the "next month" payment on down the line when they tried to tell us we'd skipped a payment. It took awhile to untangle the mess, because we didn't know they'd been applying it to the next month.
After that we made sure we put a notation on the check (I dunno, does anyone pay mortgage by check anymore?) to apply it to the principle. I'd say if you're going to pay extra, be safe and be specific about where it's going.
 

Baja28

Obama destroyed America
We haven't done this on our current home, however I know our first home they applied it to the next month's payment and another time to escrow. We had a bit of difficulty because of the "next month" payment on down the line when they tried to tell us we'd skipped a payment. It took awhile to untangle the mess, because we didn't know they'd been applying it to the next month.
After that we made sure we put a notation on the check (I dunno, does anyone pay mortgage by check anymore?) to apply it to the principle. I'd say if you're going to pay extra, be safe and be specific about where it's going.
How long ago was your first mortgage. It's always been that way for me and how I paid off my first couple mortgages and car/boat loans in half the time.
 
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