who can figure out my mortgage

Discussion in 'Credit Talk' started by peeper, Feb 26, 2001.

  1. peeper

    peeper Guest

    I have a 15 year fixed mortgage at 10.85% interest.I have 13.5 years remaining (owe 63,300.00)My current payment is 750.00 a month which includes interest and principle only i do not have an escrow account.If i pay 250.00 extra a month on the principle how many years will i cut off of the 13.5 years i have remaining?Thanks
  2. Darrell

    Darrell Guest

    RE: who can figure out my mort

    Go to bankrate.com or Quicken.com and use one of their calculators.
  3. Kelly

    Kelly Well-Known Member

    RE: who can figure out my mort

    it will cut appx 5 1/2 years
  4. Mark

    Mark Guest

    RE: who can figure out my mort

    You should't do that at all. You should refinance for 30 yrs, take the cash out and invest in investment grade bonds or municipals, and then invest the difference between your current monthly payment and your new, lower payment, into an investment that will grow more quickly than the equity in your house. Additionally, you have a new, larger tax deduction. Good luck.
  5. mvfl

    mvfl Guest

    RE: who can figure out my mort

    Then you pay taxes on the interest earned on your investment. IF you earn any. Who knows what the stock market's doing these days. We may be headed for a recession. I'd rather pay off my mortgage and have the security of owning a home free and clear.
  6. marks

    marks Guest

    RE: who can figure out my mort

    You know If I were you I would a apply for a 10 year fixed conventional loan. If you don't have any charge offs or open collections and have a few months reserves (401k or savings) you could probably 6.25% fixed on a 10 year term. That's what I would do. Fannie mae's credit standard are more relax on shorter term mortgages. I have seen middle scores as low as 534 be approved for 15 year fixed @80% LTV.
  7. jshimmer

    jshimmer Well-Known Member

    RE: who can figure out my mort

    I would never suggest to someone that they take out MORE debt (i.e., refinance w/ longer term, w/ a cash-out on the equity) and invest the money in stocks OR bonds IF I DIDN'T KNOW the person's existing financial situation (which is what Mark (---.wllmsn1.tn.home.com) has suggested. Maybe peeper feels more secure paying off his/her home mortgage quickly and at a lower rate.

    You can certainly do better than 10.85%, assuming that your credit is good enough.

    I would consider refinancing to a lower rate, do NOT cash out any equity, and THEN consider making ADDITIONAL principal payments. You'll free up more monthly dollars after refinancing, which will compound with your additional principal prepayments.

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