we are first time homebuyers and have a fixed 30 year at 7%, what is the quickest way to pay this off? a by-weekly plus some? a 15 year ?
thank you for any help and info
2007-10-09 10:55:38 · 4 answers · asked by TERESA B 2 in Business & Finance ➔ Personal Finance
I am no expert, but the way we paid our off is every payment make 1 and 1/2. the 1/2 is to go to the principle. Then every extra time we had we applied it to the principle. We started off with $185,000 and in three years we have it down to $12,000.
But we have worked.
2007-10-09 11:00:58 · answer #1 · answered by Anonymous · 1⤊ 1⤋
The only reason bi-weekly pays off the mortgage any faster is you make 26 half payments, aka 13 full payments, every year. You con come within 1 month of the same thing by simply making an extra payment once a year. A 15 year mortgage is paid faster than a 30 year because you make larger payments each month.
Short form, the one and only way to pay the loan off sooner is to make more or larger payments.
2007-10-09 18:46:28 · answer #2 · answered by STEVEN F 7 · 1⤊ 0⤋
All at once!!!! But in lieu of that method, set a program to pay it off over a certain period of time. If you want it paid off over 10 years figure how much extra you have to pay each month and pay that. You may be surprise to learn it less than you think. I will be happy to help you with the calculations. By the way, I choose five years.
2007-10-09 18:05:26 · answer #3 · answered by John R 3 · 1⤊ 0⤋
Pay extra principal each month. You will take years off the mortgage.
Most "bi-weekly" programs require a fee so I would avoid those.
2007-10-09 17:59:34 · answer #4 · answered by Wayne Z 7 · 1⤊ 0⤋