(Closed) How are you paying off your mortgage?

posted 5 years ago in Finances
Post # 49
Member
10219 posts
Sugar Beekeeper
  • Wedding: City, State

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BibbidiBobbidiBoop :  

You are very welcome.  We know how lucky we are and are very grateful, believe me.

My advice would be to try to live below your means, if possible.  Do a fifteen year mortgage rather than a thirty–that will give you light at the end of the tunnel.  The payments will be higher, but not as bad as you might think.

If the fifteen year mortgage isn’t available, you can make double payments each month. Be sure to send a letter with your payment directing the lender to apply the overage to PRINCIPLE.  Otherwise, they’ll apply it towards interest and you won’t be reducing your principle balance.

We’re a lot older than most of you Bees, so owning our house outright is a more essential goal.  But, it’s a worthy one for all of you–it brings such great peace of mind.

Post # 50
Member
10219 posts
Sugar Beekeeper
  • Wedding: City, State

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RayKay :  

My good friends bought their first home in the late 1980s.  They used the husband’s VA benefits and were thrilled to lock in a rate of 11.5%.

 

Post # 51
Member
150 posts
Blushing bee

We triple pay our mortgage every month (pay our normal monthly payment plus two installments of prinipal only). Essentially my entire salary goes toward the monthly mortgage payment. But, it will be paid off in the next 5 years. My husband purchased the house on his own and refinanced to a 15 year loan before meeting me. We earn so little interest on our savings account that, although we do save a significant amount, I would rather pay down the mortgage first since it is to our benefit (avoid interest!)

Post # 52
Member
241 posts
Helper bee
  • Wedding: July 2008

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BibbidiBobbidiBoop :  Yes the whole bonus.  We built our budget assuming we had no bonus, so an actual bonus is just pudding that goes straight to the mortgage principal.  I don’t miss it because the feeling of owing nothing brings me more happiness than buying anything else could!

Post # 53
Member
9339 posts
Buzzing Beekeeper

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BibbidiBobbidiBoop :  in the US the tax deduction is helpful but it gets less beneficial as time passes and you’re paying less interest each month – if the rates were high I’d speed up payments even with the deduction because it doesn’t save THAT much. We also tend to have fixed rate loans so there is no fear that our payment will go up in the future. I remember talking with my Canadian friends and they were shocked that my rate is fixed for 30 years and I was equally shocked that wasn’t an option for them! In the US adjustable rate mortgages aren’t typically a great idea except in very specific circumstances. 

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