2006-07-05 10:55:55 · 11 answers · asked by ADRIANA 1 in Business & Finance ➔ Renting & Real Estate
You can reduce the number of years off your mortgage by making extra payments. If you set your payments as bi-weekly you will be making 13 payments a year instead of 12 and will cut a mortgage from 25 years to 17 years saving you thousands in interest.
2006-07-05 11:01:27 · answer #1 · answered by Windseeker_1 6 · 0⤊ 0⤋
Well, you can always consider renting. In fact you really want to be able to have some money saved as the real estate market can be quite volatile. I recently saw that there is a 60% chance that the market will be adjusting in the next couple of month in areas such as Southern California. In fact the average price for a condo is about $400,000 in the Orange county area. As a matter of fact you want to get with a CPA and figure out how much you are paying in taxes a year. From there you will be able to see if it is interesting for you to actually own something as you can write off part of the interest that you are paying towards the house. Then look at the value of the house and see if has been steadily increasing. This would mean that it could be a good thing for you to invest in a house. Again, you could always sale and buy something smaller and hopefully you would have some equity in the house which would then mean lower mortgage payments.
Check on pre-payment penalties as if you make extra payments you may have to pay extra. In addition you also have to look at the type of loan that you have. Is it a fixed, interest only, variable?
In fact if your house is increasing in value it might be good for you to get an interest only loan without prepayment penalties. This means that your payment will be lower every month, but also that you can add an other $200 a month which would go towards the principal. This also means that you would pay your house faster. Check the interest rate as well as the number of points you have to pay, this is very important. In addition, it's not only the mortgage payments that you have to look at but also the insurance and in some cases associations fees that you may have to pay.
2006-07-05 11:06:08 · answer #2 · answered by Fromonetoanother 2 · 0⤊ 0⤋
All fee protection coverage contained in the united kingdom has come less than various scrutiy lately, because it really is been misold and considered as being, probably, detrimental value for money. That suggested, its like each and every non-necessary coverage (through non-necessary I advise the belongings you do not legally ought to have, compared to vehicle / homes) - and it often comes right down to how probability averse you're. it may, and does, help those who can not pay their loan for a era for whatver reason (serious ilness etc.). yet is that probably? Is it nicely worth £fifty 3 a month? What got here about in case you kept, say, £30 a month rather in a contingency account? As human beings have said, verify the numerous points for exceptions... even if the upside is you're coated for a type of scenarios, which probably advise you're a lot less probably to run into worry / lose you abode in case you could not meet the funds for some unpredicted reason. the draw back is you should pay for it!
2016-11-05 22:51:10 · answer #3 · answered by dugas 4 · 0⤊ 0⤋
I don't think it's a good idea. If the numbers (including appreciation) don't work for you, then your home becomes a liability and not an asset. You might want to look into refinancing to make smaller loan payments or move to a home you can afford. Just don't pay rent whatever you do.
2006-07-05 12:15:03 · answer #4 · answered by Anonymous · 0⤊ 0⤋
OH yes. I plan to sell my house once the mortgage is paid off. I'll get a smaller house, do some travelling, and hopefully visit my family more often. Yes yes it is worth it.
2006-07-05 10:59:27 · answer #5 · answered by shire_maid 6 · 0⤊ 0⤋
Generally that's kinda the deal between you and the bank that you will keep mortgage payments and they will not repossess your house.
2006-07-05 10:57:41 · answer #6 · answered by Anonymous · 0⤊ 0⤋
a lot of folks wish they could make the mortgage payments - i am working two jobs and just making it from paycheck to paycheck
2006-07-05 10:58:00 · answer #7 · answered by JRob 4 · 0⤊ 0⤋
As opposed to what? Not working and being homeless? Or working and throwing your money away by renting?
2006-07-05 10:57:12 · answer #8 · answered by Julie B 3 · 0⤊ 0⤋
no its best to pay the interest and principal at the same time
2006-07-05 10:59:17 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Heck yeah...your on your way to owning something one day...That is more than most people can say...
2006-07-05 10:58:02 · answer #10 · answered by Anonymous · 0⤊ 0⤋