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HLS.
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November 5, 2007 at 10:16 AM #95967November 5, 2007 at 10:16 AM #95974
Daniel
ParticipantNo way, Alex. One’s got to make larger or more frequent payments in order to pay the mortgage early (as you say, bi-weekly, for example). It’s as simple as that. More money needs to come out of one’s pocket and go to the bank, it’s basic math. Every two weeks, every full moon, every time the Padres win, whatever. The thing is, if one makes extra payments, then the mortgage will be paid off early.
And, since we’re on this topic, let me address the miracle software thing discussed on a nearby thread. Ahem… I’ll try to put on a straight face… OK, I give up… Bwahahahahhahaha…
But seriously now: how could anybody fall for that scam is beyond me. Do people really have no math skills whatsoever these days?
November 5, 2007 at 10:29 AM #95905patientlywaiting
ParticipantI was offered a bi-weekly payment option when I bought my last house. As I recall it knocked off about 6 or 7 years of payments on a 30 year loan.
If the lender offers that option, then yes, it works. But you have to pay 24 times per year. You can't arbitrarily select to do it or not on your own.
If it's some service or software problem then it's bull.
November 5, 2007 at 10:29 AM #95965ParticipantI was offered a bi-weekly payment option when I bought my last house. As I recall it knocked off about 6 or 7 years of payments on a 30 year loan.
If the lender offers that option, then yes, it works. But you have to pay 24 times per year. You can't arbitrarily select to do it or not on your own.
If it's some service or software problem then it's bull.
November 5, 2007 at 10:29 AM #95972ParticipantI was offered a bi-weekly payment option when I bought my last house. As I recall it knocked off about 6 or 7 years of payments on a 30 year loan.
If the lender offers that option, then yes, it works. But you have to pay 24 times per year. You can't arbitrarily select to do it or not on your own.
If it's some service or software problem then it's bull.
November 5, 2007 at 10:29 AM #95980ParticipantI was offered a bi-weekly payment option when I bought my last house. As I recall it knocked off about 6 or 7 years of payments on a 30 year loan.
If the lender offers that option, then yes, it works. But you have to pay 24 times per year. You can't arbitrarily select to do it or not on your own.
If it's some service or software problem then it's bull.
November 5, 2007 at 10:34 AM #95908NotCranky
Participant“let me address the miracle software thing discussed on a nearby thread.”
That topic is not being discussed on that thread so much any more. It is more about the, value or lack of, in paying off a house early, by any means.
November 5, 2007 at 10:34 AM #95969Participant“let me address the miracle software thing discussed on a nearby thread.”
That topic is not being discussed on that thread so much any more. It is more about the, value or lack of, in paying off a house early, by any means.
November 5, 2007 at 10:34 AM #95975Participant“let me address the miracle software thing discussed on a nearby thread.”
That topic is not being discussed on that thread so much any more. It is more about the, value or lack of, in paying off a house early, by any means.
November 5, 2007 at 10:34 AM #95985Participant“let me address the miracle software thing discussed on a nearby thread.”
That topic is not being discussed on that thread so much any more. It is more about the, value or lack of, in paying off a house early, by any means.
November 5, 2007 at 10:41 AM #95913ParticipantRustico,
No offense meant to those posting on that thread, I’m aware the topic has drifted. But I guess I do feel pity for the poor suckers, wherever they may be, who paid the big bucks for that piece of software…
November 5, 2007 at 10:41 AM #95973ParticipantRustico,
No offense meant to those posting on that thread, I’m aware the topic has drifted. But I guess I do feel pity for the poor suckers, wherever they may be, who paid the big bucks for that piece of software…
November 5, 2007 at 10:41 AM #95978ParticipantRustico,
No offense meant to those posting on that thread, I’m aware the topic has drifted. But I guess I do feel pity for the poor suckers, wherever they may be, who paid the big bucks for that piece of software…
November 5, 2007 at 10:41 AM #95989ParticipantRustico,
No offense meant to those posting on that thread, I’m aware the topic has drifted. But I guess I do feel pity for the poor suckers, wherever they may be, who paid the big bucks for that piece of software…
November 5, 2007 at 10:49 AM #95916DCRogers
ParticipantYou can do a lot a pre-payment experiments yourself online, with calculators such as http://www.bankrate.com/brm/mortgage-calculator.asp. (I used $100K, 6%, 30yr fixed).
So, how much does paying half of each payment half a month early speed things up? Let’s simplify: make a full extra payment at the start; this is the same as paying all of each payment a full month early. How much time does this take off the loan? About 5 months — not bad for a single payment, but not a multi-year miracle, either.
Adding 10% extra to each payment shaves off about 6 years; 20% shaves off 10 years. If you’re looking to pay off early, such a habit is the way to go. Keep it simple, don’t look for miracles in software or complicated schemes.
(Just keeping track of twice the number of payments over 30 years would drive me nuts, and would make the 5-month savings not worth it to me!)
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