Quote:
Originally Posted by fireant911
My amortization calculator is on my other computer but you can do what you are asking. For example, a $150K loan, at 5% interest for 20 years equates to a monthly payment of $989.93. Compare this to a $150K loan, at 5% interest for 30 years requires a monthly payment of $805.23. The difference in the two monthly payments is ($989.93-$805.23) $184.70. If you finance the $150K at 5% for 30 years AND make an extra $184.70 payment to principle every month, you have essentially paid off a 30-year mortgage in 20 years. Of course, this approach takes much discipline and every month you delay starting these extra payments moves the target and will require extra money to get you back on the 20-year goal track.
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Thanks, thats what i was looking for...
Quote:
Originally Posted by crb07
We are locked into a 15 year refi at 2.75%, total closing cost about 5k. Bank says 2 months before we close.
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Care to PM me which bank this is???
Quote:
Originally Posted by VincentVega
This. Gives you flexibility. Plus, why tie up all your cash in your house? Personal choice.
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This is the way I'm looking at it. I obviously completely understand that if I get a longer term, then I pay back more in interest.
And yes it does take discipline to make the extra payment, thats why I have the bank do it automatically. I pay an extra $200 a month now and have been for the last 5 years so i know it can be done. I think I would prefer the flexibility as Vincent stated.. I'm going to be inbetween jobs soon and I have a son going to college this year!