I have a mortgage of just over $68, 000 with 9 years and 11 months left. Interest is 8%. I want to keep my payments less than $1000... what the best way!?
2007-04-02 06:50:33 · 5 answers · asked by woodwinman 4 in Business & Finance ➔ Personal Finance
Do not refinance, no matte what anyone says...you will only stretch the payments out further and add to your principal balance...best advice: keep your existing loan, and make additional payments to principal on top of what you are paying now whenever you have a little extra $$$
2007-04-02 06:55:46 · answer #1 · answered by mkb_310 3 · 1⤊ 0⤋
No matter what people say here, refinancing might not be a bad deal. You could get a loan at a 6% rate for about 2K in financing cost, at 10 years. This would lower your payment significantly. If you were able to refinance, with 2K in closing cost, over a 10 year period, your payment would come out to about $775 a month. Take the additional $225 to come to $1,000, and you would have the loan paid off in just 7 years and 3 months.
Other than that, just keep making payments, and try to apply any extra money to the principal balance. Take your tax return, and apply it directly to the mortgage balance. For every $1,000 you pay off, you will save $80 in interest a year. At 10 years, you'll save $800 in interest for the $1,000 you paid off.
2007-04-02 14:49:43 · answer #2 · answered by drp2505 2 · 0⤊ 0⤋
Pay off any non-tax-deductable debts first, such as credit cards and car payments.
Put the maximum into retirement accounts first.
Start an emergency fund if you haven't already.
Then pay what you can afford monthly to pay off the loan. With only about 10 years left on the loan, assuming it is a 30 year loan, you have already paid far more than the price of the house in interest. I would call the lender and offer to pay it off for $50,000 cash. They might go for it, if not, see what you can wheel and deal.
2007-04-02 13:58:35 · answer #3 · answered by Feeling Mutual 7 · 1⤊ 0⤋
What is the monthly payment? I would suggest just making a extra payment when you can or put a little more with the payment a month like100.00-200.00 with it.It knocks the interest down when you do this.But make sure you do not have a penalty for a early pay-off.
2007-04-02 13:55:09 · answer #4 · answered by billieleann78 4 · 0⤊ 0⤋
The best and easiest way to pay off a mortgage is to make LARGER payments than needed. Make sure you specify to the lender that the excess should be paid against PRINCIPLE and not against INTEREST. By paying off principle, you reduce the interest and pay off the loan quicker.
2007-04-02 13:59:21 · answer #5 · answered by Marvinator 7 · 0⤊ 0⤋