Quote:
Originally Posted by legion
I have a 30-year fixed. Every year I get my coupon book, by monthly payments decline--mostly because I've been overpaying principal and they are re-amortizing the mortgage to keep the 30-year term. I still keep paying the same amount I've paid since month #1. At this point it's nice to know that if I had to I could drop down to paying the "normal" payment a free up a few hundred dollars a month.
I'm also prepaid on my student loan up to 2012. That is going to get to the point pretty soon where I'm just going to write a check for the balance...
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You may want to look into that reamortizing thing. The usual rule is that one extra P&I payment per year will knock the last seven years - 84 payments - off a 30 yr. fixed rate mortgage. If you're paying extra and they keep reamortizing it, then it looks like you'll never have it totally paid off. Be sure they applying your extra payments to princ. and not interest.