Consider this,...luxury autos costing $100,000. or more can be paid off in 5 to 7 years. Why can't I pay off a condo costing the same, in the same amount of time?
2007-11-05 06:05:46 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
No problem! Any lender can show you how to pay off a mortgage quicker. You can pay it all off tomorrow if you want. :o)
There's longer terms on mortgages to make them more affordable. Keep in mind homes appreciate and people typically find use for them longer than you would a vehicle.
Feel free to contact me directly if you have any more questions.
2007-11-05 06:25:59 · answer #1 · answered by Quicken Loans 5 · 0⤊ 3⤋
There are some mortgages with prepayment penalty, but even those can be paid off any time your want (after the prepayment penalty period without a penalty or within a prepayment penalty period, if you are willing to pay this penalty.) And, of course, mortgages without prepayment penalty can be paid off any time with no problems.
Contact your lender and ask them to give you a pay off amount. They'll tell you how much the balance is right now. You send then a check for this amount and that's it.
If you do not want to pay off the whole thing, but want to pay it faster (5 or 10 years instead of 30) just make large additional payments towards the principal. This way you'll save a lot on interest because interest is calculated on the remaining balance. Before you do this, calculate your actual savings. Is it better to invest the money you use to pay off your mortgage or "dump" it into a pay off. Don't forget you'll loose a substantial tax write off, when you get rid of your mortgage.
As for your example with a car, there are two things to consider. First there's no tax write off with a car loan. Second, nobody will give you a 30 year loan on any car, because a car depreciates in value.
2007-11-05 06:33:21 · answer #2 · answered by REALTOR 3 · 1⤊ 1⤋
30 years is just the industry standard. You can get a mortgage for virtually any number of years you want with the highest being 50 years. You can even get the term at an odd number if you really want it that way. However, the tax advantage you get by having a mortgage as well as a lower monthly payment intices most people to take the 30 yr. deal.
2007-11-05 06:44:42 · answer #3 · answered by flamingojohn 4 · 1⤊ 1⤋
You CAN, if you want to. Even if you have a thirty year mortgage, simply make heavy excess monthly payments over and above the actual payment required. You'd be a amazed at how quickly a thirty year mortgage will reduce to a fifteen year or less.
2007-11-05 06:10:00 · answer #4 · answered by acermill 7 · 1⤊ 1⤋
You can,
Just make sure your mortgage doesn't have an "early payment penalty".
First get an "Amoritization Schedule" of your loan.
Then pay extra "Principal" every month.Their is usually a space for that on your payment book.
Or, you could take out a 15 yr. loan.They usually take out the money every 2 wks. ,instead of monthly payments.
That saves you thousands over a 30 yr. loan.
BTW: I just read that they make 50 yr. real estate loans now.
They sure make alot of money off of compounding interest.
2007-11-05 06:22:36 · answer #5 · answered by candlestick1st 4 · 1⤊ 1⤋
because loan institutions know that real estate will be around longer than autos or boats etc., so they stick it to ya....personally i went to a bank and got a simple interest 15 yr property loan
2007-11-05 06:22:15 · answer #6 · answered by Radar 3 · 1⤊ 1⤋