2007-12-15 14:48:07 · 4 answers · asked by 247365 1 in Business & Finance ➔ Personal Finance
just add more money to the payment!!! remember if the payment is 100 dollars and you pay 125 the next month you will owe 100 dollars not 75!!!
2007-12-19 03:53:06 · answer #1 · answered by Anonymous · 0⤊ 0⤋
This is my story, I recently just purchased a house for 213,000, (360 months remaining) and am planning on paying it off in 10 1/2 years, without making more money or changing my lifestyle.
Here is how it works... The program that I am talking about is called united first financial (or U1st). It is a software program that prompts you to pay more towards your principle during the year. (as long as you pay your monthly interest, everything else is added to principle). The idea behind it is using a home equity line of credit (heloc) in place of your checking and savings account. By doing this you are canceling interest on your heloc by your income coming into it. Its only charged on a daily average balance so you want to keep as much money in heloc as you can.
(Example... 3000 on line already, pay your bills for that month and it takes the balance up to 8000, then you deposit your money which drops it back down to 2500.00, with the daily average balance you'll only pay on the 2500. and not the 8000.)
Well once you let your income work down your heloc, it wont allow you to put more money than you have drawn, so you transfer over a couple thousand to your first mortgage. Then put your income back in, repeating the process a few times a year...resulting in 1/2 to 1/3 the time frame to payoff your house. Also saving hundreds of thousands in interest. Any other questions feel free to check out this site.
2007-12-15 16:58:06 · answer #2 · answered by c_fowler 2 · 0⤊ 0⤋
You have to state it in the payment. Example: "this goes for the principle" written in a check that is sent through the mail. Always call the bank, and verify, banks might differ. But you do have to call them and tell them, and send the payment in a check, with the directions that it will be going to the principle amount.
2007-12-15 14:59:26 · answer #3 · answered by Eirene Goddess of Peace 4 · 0⤊ 0⤋
Personal loans don't work that way, they take more interest rate %
If I request to put the extra cash towards my principle will they do that?
2015-03-03 05:25:40 · answer #4 · answered by Customer Service 1 · 0⤊ 0⤋