30 Year Mortgage To A 15 Year

[wal1809]

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.

right here

[2014FusionM]

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.

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.

[HoustonHunter]

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. Don't make it complicated.

Refinances (or any mortgage process) is a pain so stick with what you have and pay down extra. Any refinance is going to cost you, whether you pay out of pocket or they roll it into the note.

[ACook]

Some of you mortgage whizzes on here, I have a question. I have a 30 year mortgage. I pay 1/2 of my monthly mortgage every 2 weeks when I get paid. This results in 26 payments each year. Since I pay 1/2 every 2 weeks, does this reduce the number of years until payoff? Also how does paying an extra payment a year effect payoff? Thanks in advance.

[Twayne]

Some of you mortgage whizzes on here, I have a question. I have a 30 year mortgage. I pay 1/2 of my monthly mortgage every 2 weeks when I get paid. This results in 26 payments each year. Since I pay 1/2 every 2 weeks, does this reduce the number of years until payoff? Also how does paying an extra payment a year effect payoff? Thanks in advance.

Yes paying half of a payment every 2 weeks will cut down the length of the term since you will essentially be making 13 "monthly" payments per year. You will pay less interest overall saving you money.


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[ACook]

Yes paying half of a payment every 2 weeks will cut down the length of the term since you will essentially be making 13 "monthly" payments per year. You will pay less interest overall saving you money.


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Thanks! This is what I figured. Do you know approximately how many years it cuts off or a calculator that shows?

[rferg84]

Wife and I are both self employed for the last 6 years.

30 year mortgage what's that? lol

Hard to qualify for secondary market loans with business debt and a bunch of commercial real estate.

We are used to having to do 15-20 years with 10-20% down.

Actually is pretty nice when you get accustomed to it.

[gingib]

Some of you mortgage whizzes on here, I have a question. I have a 30 year mortgage. I pay 1/2 of my monthly mortgage every 2 weeks when I get paid. This results in 26 payments each year. Since I pay 1/2 every 2 weeks, does this reduce the number of years until payoff? Also how does paying an extra payment a year effect payoff? Thanks in advance.

1 extra full payment per year(on top of principal) will lower a 30 year note almost 1 year. because all of that payment is going towards principal and no interest.

You are stilll paying the regular amount on your monthly mortgage so that will not positively affect anything.

[gingib]

Yes paying half of a payment every 2 weeks will cut down the length of the term since you will essentially be making 13 "monthly" payments per year. You will pay less interest overall saving you money.


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If your paying a normal mortgage monthly amount it does not matter how many payments it takes you to reach that amount.

For example, if you owe $1000 a month. If you pay 1 payment of $1000 or 10 payments of $100 it is still $1000. SO your not saving any money. YOu only save money when you pay over the amount as that goes directly to principal. IE that extra monthly payment

[300rem7]

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.

+1

[Twayne]

If your paying a normal mortgage monthly amount it does not matter how many payments it takes you to reach that amount.



For example, if you owe $1000 a month. If you pay 1 payment of $1000 or 10 payments of $100 it is still $1000. SO your not saving any money. YOu only save money when you pay over the amount as that goes directly to principal. IE that extra monthly payment

Yes if you go back and actually read what I said you will probably see that we have said the same thing. Paying and extra monthly payment per year will cut down the overall interest paid which does result in saving money in the long run. The only money to be saved is by paying less interest.


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[gingib]

Yes if you go back and actually read what I said you will probably see that we have said the same thing. Paying and extra monthly payment per year will cut down the overall interest paid which does result in saving money in the long run. The only money to be saved is by paying less interest.


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well this is what you said below....which is wrong on the 1st question he had

Yes paying half of a payment every 2 weeks will cut down the length of the term

[Twayne]

30 Year Mortgage To A 15 Year

well this is what you said below....which is wrong on the 1st question he had



Yes paying half of a payment every 2 weeks will cut down the length of the term

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.


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[deerwatcher51]

cutting years always saves you money, but I believe 15 year rates today are around 3%. the 3.25% 30 year you have is a good 30 year rate.

if your mortgage was $100k on a 30 year and you still had 30 years left and you went down from 3.25 to 3% on a 15 year you save around $5k total.

This is the best advice you are going to get.

[BrianL]

You need to brush up on your amortization skills.
$100,000 at 3.25% for 30 years ... total P&I payments = $156,674
$100,000 at 3.00% for 15 years ... total P&I payments = $124,304

TRUE, but if OP pays at the 15 year amortization on his 30 year mortgage, difference in cost of rate (3 vs 3.25) is only $2K over that 15 year timeframe.