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Holy poo interest rates are low right now...


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#1 Jase

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Posted 04 January 2012 - 10:04 AM

I just re-fied my mortgage last week from 4.75% to 3.625%. Saves me $105 on my minimum payment.

Anybody paying ahead on their mortgage? Have a plan to pay it off early? What is it? I have a plan where I increase my monthly payment by $50/year. Seems to be working great so far. My goal is to be mortgage-free by the time my daughter enters college (2028, 19 years from origination).

Home values seem to be sinking again. Checked zillow yesterday and from december to january my house value dropped 3.5%, and has dropped 8.3% from its 2011 peak.

#2 Epistaxis

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Posted 04 January 2012 - 10:10 AM

Yes.

We are currently dumping what is normally investment cash in to our mortgage.

Should have her paid in full in 2 months.

Even though we made 49k in the market for year 2011 (wow, I know) we still want out from under the debt.

Our interest rate on the loan is only 3.37, but debt is bad, and we actually have the money right now to do it, and we are not sure how much longer that will be the case.

#3 pantherfan49

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Posted 04 January 2012 - 10:26 AM

Yes.

We are currently dumping what is normally investment cash in to our mortgage.

Should have her paid in full in 2 months.

Even though we made 49k in the market for year 2011 (wow, I know) we still want out from under the debt.

Our interest rate on the loan is only 3.37, but debt is bad, and we actually have the money right now to do it, and we are not sure how much longer that will be the case.


^^^^^ awesome

#4 Jase

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Posted 04 January 2012 - 10:37 AM

Yes.

We are currently dumping what is normally investment cash in to our mortgage.

Should have her paid in full in 2 months.

Even though we made 49k in the market for year 2011 (wow, I know) we still want out from under the debt.

Our interest rate on the loan is only 3.37, but debt is bad, and we actually have the money right now to do it, and we are not sure how much longer that will be the case.


That's great. It's amazing the kind of cash flow that will be freed up when you don't have a mortgage anymore. I imagine you'll make up for that lost investment time very quickly.

I'm pretty early in my mortgage, only 3 years. People probably wonder why I'm trying to pay it off early when I have such a low rate. The bottom line is that currently, even with paying ahead by $200 per month and with a new rate, still over half of my payment is going to interest. Paying off 11 years early will save me tens of thousands of dollars.

#5 Johnny Rockets

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Posted 04 January 2012 - 10:46 AM

I switched to a bi monthly payment program and even without paying extra money it shaved 8 years off a 30 year mortgage. Bad thing is with a divorce looming we are looking to sell and the home value is even with what we owe now where we were $25K above not to long ago. I know going into the selling process that getting the actual value of the home is not going to happen and will be owing a bit of money still after the sale.

Really a bad time to be to be going through all this but paying the entire mortagage and insurance on my old home (she can't afford it) on top of paying rent on where I am living now is draining me. I just hope that when I climb out of this, it is still a buyers market and I can take advantage of the deals that are out there in home values and interest rates.

#6 pantherfan49

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Posted 04 January 2012 - 10:55 AM

I switched to a bi monthly payment program and even without paying extra money it shaved 8 years off a 30 year mortgage. Bad thing is with a divorce looming we are looking to sell and the home value is even with what we owe now where we were $25K above not to long ago. I know going into the selling process that getting the actual value of the home is not going to happen and will be owing a bit of money still after the sale.

Really a bad time to be to be going through all this but paying the entire mortagage and insurance on my old home (she can't afford it) on top of paying rent on where I am living now is draining me. I just hope that when I climb out of this, it is still a buyers market and I can take advantage of the deals that are out there in home values and interest rates.


That's the key, yes it sucks to be selling right now, but, assuming you can get financing, the home you buy will also be discounted so it lessens the financial damage you may have incurred.

#7 Epistaxis

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Posted 04 January 2012 - 11:02 AM

P49 is right on with that.

You'll get squeezed with your house, but whatever you buy should be discounted nicely to make up for it.

I really wish we were buying now with nothing to sell like we were 7 years ago.

Ugh.

#8 Mvp2014

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Posted 04 January 2012 - 11:05 AM

Now is the time

#9 Mrs Pantherfan

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Posted 04 January 2012 - 12:00 PM

If I was in a house I knew I wanted to stay in for a long time..I would do things differently.....*sigh* too bad it'll be a few years before I can sell and get what my house is worth

#10 pantherfan49

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Posted 04 January 2012 - 12:16 PM

If I was in a house I knew I wanted to stay in for a long time..I would do things differently.....*sigh* too bad it'll be a few years before I can sell and get what my house is worth


I don't think housing prices are going to recover any time soon (as in, not within the next 5 years).

#11 Mrs Pantherfan

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Posted 04 January 2012 - 12:19 PM

yeah..that's why it blows..I'm gonna be f*cking stuck

I'm not too far upside down in it..but we've put a lot of money in upgrades that I wouldn't get back should I sell right now..

#12 Mvp2014

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Posted 04 January 2012 - 12:20 PM

I don't think they are moving up ever again. We were riding one hell of a bubble.

#13 Jase

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Posted 04 January 2012 - 12:25 PM

good point

housing is not historically an appreciating asset.

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#14 pantherfan49

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Posted 04 January 2012 - 12:29 PM

good point

housing is not historically an appreciating asset.


It looks like it has been since the 50s.

#15 g5jamz

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Posted 04 January 2012 - 12:30 PM

I wonder if BB&T allows bimonthly payment...


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