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IWETHEY Home / IWETHEY Board / Money, Financials, and Economics Forum / Thought about it
Post #57,149
by tuberculosis
Picture of tuberculosis
10/16/02 11:08:25 AM
Reply
New Thought about it
Make on extra mortgage payment a year and pay off in 17 years. How do you do that? I round up a little. So your mortgage payment is $1020. Pay $1100. Like you're going to notice the missing money. But if you take a look - it totally adds up. Faster than you would think.

Anyhow, I have a 15 year and I'm still rounding up to the nearest 100 plus a hundred. It pays off.

Which is another thing - given the economy, try for a 15 year and put at least 20% down to avoid the dreaded "mortgage insurance" which is also a ripoff.
I am out of the country for the duration of the Bush administration.
Please leave a message and I'll get back to you when democracy returns.
Post #57,171
by Another Scott
10/16/02 12:34:56 PM
Reply
New No need for 20% down to avoid PMI.
PMI = Private Mortgage Insurance.

Many places offer "80/10/10" or even "80/15/5" loans. First mortgage is 80% of the principal, 2nd mortgage (at a higher rate) for 10% or 15% of the principal, and you make a 10% or 5% down payment. You won't have to pay PMI and the interest on the 2nd mortgage is deductable. (And I think there are even places that offer 0% down mortgages, or used to. I'd be scared of that unless I really understood the costs.)

80/10/10 or 80/15/5 is a great system for those who can't or don't want to put 20% down.

I agree with the desire to pay things off early (I'm paying off my 30 year mortgage in 20 years), though there are good arguments (like those given by Ben long ago) that it's a mistake to have too much money tied up in your home (e.g. it's hard/expensive to get it out).

Cheers,
Scott.
     What's your thoughts on buying a place in this econ? - (inthane-chan) - (38) - Oct. 2, 2002, 11:20:43 AM EDT
         Re: What's your thoughts on buying a place in this econ? - (deSitter) - Oct. 2, 2002, 11:23:36 AM EDT
         Keep in mind... - (admin) - (5) - Oct. 2, 2002, 11:25:18 AM EDT
             Exactly what happened to me - (drewk) - (2) - Oct. 2, 2002, 11:41:46 AM EDT
                 One other thing though... - (admin) - (1) - Oct. 2, 2002, 11:47:18 AM EDT
                     Student loans are already a deduction. - (inthane-chan) - Oct. 2, 2002, 12:05:36 PM EDT
             Also, keep in mind property taxes. - (a6l6e6x) - (1) - Oct. 2, 2002, 05:37:11 PM EDT
                 Interesting facet of Michigan tax law: - (admin) - Oct. 2, 2002, 05:53:04 PM EDT
         What doe s Marysville look like for housing and how far is - (boxley) - (1) - Oct. 2, 2002, 12:40:18 PM EDT
             One big problem. - (inthane-chan) - Oct. 2, 2002, 01:19:00 PM EDT
         Beware the bubble - (marlowe) - (16) - Oct. 2, 2002, 12:53:34 PM EDT
             Less chance of a bubble in residential real estate - (drewk) - (11) - Oct. 2, 2002, 01:15:35 PM EDT
                 Seattle == Silicon Valley/2 - (inthane-chan) - (6) - Oct. 2, 2002, 01:27:04 PM EDT
                     We're looking to sell soon. - (Brandioch) - (5) - Oct. 2, 2002, 03:13:24 PM EDT
                         Hey, where do you work, anyways? - (inthane-chan) - (4) - Oct. 2, 2002, 03:37:45 PM EDT
                             One Convention Place -NT - (Brandioch) - (3) - Oct. 2, 2002, 07:50:48 PM EDT
                                 LMAO! - (inthane-chan) - (2) - Oct. 3, 2002, 11:12:39 AM EDT
                                     Week after is the soonest. - (Brandioch) - (1) - Oct. 4, 2002, 11:34:00 AM EDT
                                         Need contact info... - (inthane-chan) - Oct. 4, 2002, 11:42:52 AM EDT
                 Nearly 100% chance IMO - (ben_tilly) - (3) - April 20, 2003, 10:37:33 AM EDT
                     Re: Nearly 100% chance IMO - (deSitter) - (2) - April 20, 2003, 11:00:53 PM EDT
                         Yes -NT - (ben_tilly) - (1) - April 20, 2003, 11:05:01 PM EDT
                             Econ Laureate LRPD: Unintended consequences -NT - (Ashton) - April 21, 2003, 05:38:58 AM EDT
             Commented on that in my original post. - (inthane-chan) - (3) - Oct. 2, 2002, 01:23:48 PM EDT
                 Doesn't add up - (drewk) - (2) - Oct. 2, 2002, 01:57:36 PM EDT
                     The houses aren't what's causing it. - (inthane-chan) - (1) - Oct. 2, 2002, 02:06:07 PM EDT
                         OK, I get it. In the 70s that land would be 2 dozen lots. -NT - (drewk) - Oct. 2, 2002, 02:28:12 PM EDT
         You need to compare it to the alternatives. - (Another Scott) - (2) - Oct. 2, 2002, 02:36:43 PM EDT
             Something else re: condos - (drewk) - (1) - Oct. 2, 2002, 03:26:24 PM EDT
                 To add another twist: - (admin) - Oct. 2, 2002, 04:51:33 PM EDT
         Don't - (ben_tilly) - (2) - Oct. 2, 2002, 07:52:46 PM EDT
             Here's the trick: - (inthane-chan) - (1) - Oct. 4, 2002, 11:50:59 AM EDT
                 Quick questions to ask yourself. - (ben_tilly) - Oct. 5, 2002, 05:49:49 PM EDT
         Totally depends on when and where - (wharris2) - Oct. 4, 2002, 11:59:18 AM EDT
         Rent is a ripoff - (tuberculosis) - (4) - Oct. 11, 2002, 10:32:02 AM EDT
             Re: "mortgage payments are equity" - (a6l6e6x) - (2) - Oct. 11, 2002, 11:34:42 PM EDT
                 Thought about it - (tuberculosis) - (1) - Oct. 16, 2002, 11:08:25 AM EDT
                     No need for 20% down to avoid PMI. - (Another Scott) - Oct. 16, 2002, 12:34:56 PM EDT
             Don't forget to factor in: - (wharris2) - Oct. 14, 2002, 05:28:49 PM EDT


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