had to pay 7 years interest without penatly,had loan for 10 years don't seem to be making progress. paying high interest rate
2007-01-05 00:20:09 · 6 answers · asked by HELEN H 1 in Business & Finance ➔ Personal Finance
In addition to paying on the mortgage ....any extra money you have pay on the principal. Don't make 2 payments. Pay on the mortgage and pay on the principal. You can do it.
2007-01-05 00:22:35 · answer #1 · answered by Trollhair 6 · 0⤊ 0⤋
First find out if you will be penalized for paying your mortgage off early and at what point you will no longer be penalized. Then work from there. Find out if you pay over the amount of your monthly payment where that money is applied to your interest or your principal. If it is applied to your principal then just figure out how much more you need to pay each month to pay off $45000 in five years. I do not know what your payment is and what part of your payment is being applied to interest and what amount is being applied to principal but if you have a total of $750 a month being applied to your principal each month then you will pay it off in 5 years. For example lets say your payment each month is $1000 of which $500 is being applied to interest and $500 is being applied to principal then you would only have to pay an additional $250 a month extra to cover the $750 a month being applied to your principal. Good Luck and check with your mortgage company for there specific guidelines as well.
2007-01-05 00:29:02 · answer #2 · answered by Toni B 4 · 1⤊ 0⤋
The interest is the issue. Most of your payment goes to that early in the mortgage. The best thing to do, if you can afford it, is to double up on your payments - pay two payments a months. If you can't afford that much, just add some additional onto your payment, and not on the receipt that the diff is to be applied to the principle.
2007-01-05 00:24:47 · answer #3 · answered by Dan821 4 · 0⤊ 0⤋
take your mortgage contract and sit down with a CPA. The CPA should know your state's mortgage laws well enough to look at your contract and advise you of an answer. But assuming you can pay off early, your CPA can compute a monthly payment which will bring to full ownership in 5 years. Alternately, you can go to a refinancing company to redo your contract. Make sure you review their offer with a CPA so you completely understand what is included in the offer.
2007-01-05 00:27:36 · answer #4 · answered by bardmere 5 · 1⤊ 0⤋
I can't remember just how to calculate it....Call your mortgage company and ask. I knew someone who payed it off early by paying a couple of extra dollars a month. Do not add that extra to the payment check. Make it two separate payments...One house payment and the other specify it as " to principal only". I am not real clear so please ask someone before you take my advice.
2007-01-05 00:33:38 · answer #5 · answered by Robin L 6 · 0⤊ 0⤋
win the lottery
2007-01-05 00:23:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋