[DCRogers]

I do not think you are real: you are from Central Illinois (right?), and would “seriously consider” this house, at nearly twice what it would be worth in IL, sight unseen. You’re either trolling, or yes, nuts.

DCRogers

[DCRogers]

I do not think you are real: you are from Central Illinois (right?), and would “seriously consider” this house, at nearly twice what it would be worth in IL, sight unseen. You’re either trolling, or yes, nuts.

DCRogers

[DCRogers]

I do not think you are real: you are from Central Illinois (right?), and would “seriously consider” this house, at nearly twice what it would be worth in IL, sight unseen. You’re either trolling, or yes, nuts.

DCRogers

[DCRogers]

I do not think you are real: you are from Central Illinois (right?), and would “seriously consider” this house, at nearly twice what it would be worth in IL, sight unseen. You’re either trolling, or yes, nuts.

DCRogers

[DCRogers]

jamsvet has it right… It’s called the “Bankers Secret”; another formulation is: look at your principal payment, and pay double that (with the interest) each month.

Two comments.

1) You don’t need software to do this. Just the cash to pre-pay.

2) You can’t get a significant advantage with timing schemes. If you want to shorten your mortgage, here’s the shocking tip: pay more each month.

The worst effect of this damn bubble is that people saw neighbors buying Escalades and yachts with their HELOCs and, rather than being reinforced into paying their debts off, one painful dollar at a time, threw caution to the wind and joined the party. A dead-man’s party.

DCRogers

[DCRogers]

jamsvet has it right… It’s called the “Bankers Secret”; another formulation is: look at your principal payment, and pay double that (with the interest) each month.

Two comments.

1) You don’t need software to do this. Just the cash to pre-pay.

2) You can’t get a significant advantage with timing schemes. If you want to shorten your mortgage, here’s the shocking tip: pay more each month.

The worst effect of this damn bubble is that people saw neighbors buying Escalades and yachts with their HELOCs and, rather than being reinforced into paying their debts off, one painful dollar at a time, threw caution to the wind and joined the party. A dead-man’s party.

DCRogers

[DCRogers]

jamsvet has it right… It’s called the “Bankers Secret”; another formulation is: look at your principal payment, and pay double that (with the interest) each month.

Two comments.

1) You don’t need software to do this. Just the cash to pre-pay.

2) You can’t get a significant advantage with timing schemes. If you want to shorten your mortgage, here’s the shocking tip: pay more each month.

The worst effect of this damn bubble is that people saw neighbors buying Escalades and yachts with their HELOCs and, rather than being reinforced into paying their debts off, one painful dollar at a time, threw caution to the wind and joined the party. A dead-man’s party.

DCRogers

[DCRogers]

jamsvet has it right… It’s called the “Bankers Secret”; another formulation is: look at your principal payment, and pay double that (with the interest) each month.

Two comments.

1) You don’t need software to do this. Just the cash to pre-pay.

2) You can’t get a significant advantage with timing schemes. If you want to shorten your mortgage, here’s the shocking tip: pay more each month.

The worst effect of this damn bubble is that people saw neighbors buying Escalades and yachts with their HELOCs and, rather than being reinforced into paying their debts off, one painful dollar at a time, threw caution to the wind and joined the party. A dead-man’s party.

DCRogers

[DCRogers]

You 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!)

[DCRogers]

You 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!)

[DCRogers]

You 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!)

[DCRogers]

You 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!)

[DCRogers]

Forgot to mention, it’s a bit of a cruel twist of fate that the inaction of government caused the explosion of bad loans to any oxygen thief, and now their high down-payment requirement for “distressed neighborhoods” (yeah, those are just the places where people have the cash for large down payments) will all but guarantee a near-complete cutoff of loans.

Hardly a rational market stabilized to find the true market-clearing prices for these things…

[DCRogers]

Forgot to mention, it’s a bit of a cruel twist of fate that the inaction of government caused the explosion of bad loans to any oxygen thief, and now their high down-payment requirement for “distressed neighborhoods” (yeah, those are just the places where people have the cash for large down payments) will all but guarantee a near-complete cutoff of loans.

Hardly a rational market stabilized to find the true market-clearing prices for these things…

[DCRogers]

Forgot to mention, it’s a bit of a cruel twist of fate that the inaction of government caused the explosion of bad loans to any oxygen thief, and now their high down-payment requirement for “distressed neighborhoods” (yeah, those are just the places where people have the cash for large down payments) will all but guarantee a near-complete cutoff of loans.

Hardly a rational market stabilized to find the true market-clearing prices for these things…

[Author]

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