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30 Year Mortgage To A 15 Year

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    #31
    we didn't change mortgages we simply set up payments against our paychecks so we were making two payments every 26 weeks.

    we paid ours off in literally no time.

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      #32
      Just ask your lender to calculate how much extra principal you'd have to make every month to pay your mortgage off in 15 years instead of 30 and then pay that amount extra. Make sure you designate the extra as "principal payment" when you do, otherwise it messes with their heads and they'll put it in your escrow account. Ask me how I know.

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        #33
        Originally posted by 2014FusionM View Post
        I think this is what we are going to go with. We may pay a little more in interest but we will have the flexibility of going down on the payment.

        We are putting about 18% back into savings each, that includes company matching. We have also stacked up our savings pretty good. We are truly blessed and hope it keeps coming.
        Congratulations. Keep working hard.

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          #34
          ttt

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            #35
            If you were getting a WAY better APR, it might be worth it. Don't think that'll be the case for you. As mentioned, your best bet would be to just double up on payments when you have the chance.

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              #36
              Originally posted by Twayne View Post
              Ok and please explain, in detail, how this is wrong? His initial question did not state that he makes an additional principle payment each year. Just that he pays 26 payments every year instead of 12.


              Sent from my iPhone using Tapatalk
              Making 2 half payments a month instead of 1 full payment a month will not benefit you in any way as its the same. You are not paying less interest or paying more towards principal

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                #37
                Originally posted by TigerBob View Post
                Another thought - because your rate is already really low - take that extra money you would put towards your mortgage and invest it. As long as your disciplined and continue to invest, you can build your savings and have the liquid funds available should you ever need them. This way you aren't forced to pay a higher monthly mortgage payment should hard times hit or be forced into another cash out refi in the future should you need access to these funds for any reason.
                Dave Ramsey is that you?!

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                  #38
                  Originally posted by Aggiehunter08 View Post
                  Dave Ramsey is that you?!


                  Lol Unfortunately no I don't think that's Dave. Dave wouldn't tell you to invest or throw any additional money onto your mortgage until after you've paid off all consumer debt. Then start investing 15% of your annual income into your 401k or good solid mutual funds. Then throw anything you have left onto your mortgage to pay it off as fast as possible.


                  Sent from my iPhone using Tapatalk

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                    #39
                    At 3.25% you probably wouldn't save enough to make it worth paying any closing costs again unless you planned to be in the home long term unless your bank offered a streamline refi. As others have said, I would just focus on maxing out your 401k's and paying extra each month.

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                      #40
                      If you are currently paying PMI then it will most definitely be worth refinancing... You have to have a certain amount of equity in your home to get out of paying that...

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                        #41
                        Originally posted by lnester View Post
                        Just pay extra principal each month to make it a 15 year mortgage. That way you avoid the fees of re-financing.

                        Then, if things get tight, your minimum payment is only a 30-year mortgage payment. The best of both worlds.
                        This... Just double the principal portion of your payment and you'll cut the time in half...

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                          #42
                          Originally posted by nursejenn View Post
                          This... Just double the principal portion of your payment and you'll cut the time in half...
                          This isn't true. Since the balance will be lowered with each additional principal payment made, the interest due will go down also.

                          Making double principal payments would fully amortize the loan in less than half the time.

                          To the OP, you can download an amortization template and play with the principal payments to see what would be your best option. My gut feeling is the interest saved by going down a 1/4% in interest rate would not make up for the re-fi cost.

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                            #43
                            Originally posted by Stick-Launcher View Post
                            If you are currently paying PMI then it will most definitely be worth refinancing... You have to have a certain amount of equity in your home to get out of paying that...
                            We don't have PMI with a Veteran home loan.

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                              #44
                              Originally posted by ken View Post
                              This isn't true. Since the balance will be lowered with each additional principal payment made, the interest due will go down also.

                              Making double principal payments would fully amortize the loan in less than half the time.

                              To the OP, you can download an amortization template and play with the principal payments to see what would be your best option. My gut feeling is the interest saved by going down a 1/4% in interest rate would not make up for the re-fi cost.
                              Semantics... cheaper than fully refinancing....

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                                #45
                                Originally posted by Aggiehunter08 View Post
                                Dave Ramsey is that you?!
                                Close, but not quite . I do like being debt free other than my house mortgage though. I don't see the point in paying off the house faster if I can invest those extra funds and make a higher rate of return than I'm paying in interest. The underlying asset still will appreciate (the house and/or land) and your making headway into paying off that mortgage if you wish while allowing yourself the freedom to access that cash if you need it. To each their own though - as long as you're bettering yourself financially, then there's really no wrong answer.

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