The Mortgage thread
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Joined: Oct 2002
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From: Canton, MA
The Mortgage thread
Someone on an investment show recently said "with all the advances in modern medicine, some of us may live long enough to pay our mortgages." After I got done laughing I wondered how much time we all have left on that little note. I know this may well be considered a personal question that is inappropriate for a public forum, so feel free to generalize. Also, what do folks think about making additional principal payments?
As for me, I kept refinancing over the last few years chasing the rate down. We now send extra every month to reduce the principle faster. I think we will be done well before we retire.
As for me, I kept refinancing over the last few years chasing the rate down. We now send extra every month to reduce the principle faster. I think we will be done well before we retire.
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From: Randolph, NJ
I think it was a good idea to refinance and chase the rates down. I also think it is a good idea to pay off as much principal as you can. I think the less debt that you carry, even in times of low interest rates, the better off you are.
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From: Mish-she-gan
When I hit 60 I retired and paid off my mortgage for the piece of mind. But, I've realized it's not that big of a deal, as long as you keep it low. It's cheaper money than paying the tax on a 401 roll over draw, which I still do as well. Anyways I'm back in the mortgage game; in fact, I just re-did the rate again last month.
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Joined: Oct 2002
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From: Canton, MA
Originally posted by tomcatt
We refinanced last year to get a better rate. We're also adding more to the monthly so we can be paid off in 10 years.
We refinanced last year to get a better rate. We're also adding more to the monthly so we can be paid off in 10 years.
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From: Redmond
Seems to me it's best to pay extra to reduce the principle at the start of the loan when a large portion of the monthly payment is going towards interest. As the loan matures more of your monthly payment goes towards the principle and it's not as advantageous to pay down the loan.
Of course, the start of the loan is when one is strapped for money.
I was close to having my current home paid off. Then the deadly divorce came up and I bought the house a second time.
Of course, the start of the loan is when one is strapped for money.
I was close to having my current home paid off. Then the deadly divorce came up and I bought the house a second time.