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significant/noticeable difference????
montanajoe
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We were paying for cable T.V. for wife's dad while in the rest home. Since his passing 2 months ago, we decided to leave the amount in our monthly budget and use it towards principal only on our monthly mortgage payment. The amount is $80. Is this amount enough to truly make an impact on our mortgage??
Comments
80 dollars worth. Don
Every dime counts. So yes! That is $960 annually to the principal. Almost a grand every year you are not paying interest on.
Thank you, Don.
Numbers for illustration only
30 yr mortgage, you pay $1000 a month. At the start, that breaks down each month to Interest- $990, principal (actual debt) gets $10.
At the end of the mortgage, same $1000, $10 interest, $990 Principal.
If you pre-pay Principal during the early part of the mortgage, it can shorten it up significantly. Take that first year, where only $10 goes to pay off the loan. Send them $80 TO BE APPLIED TO PRINCIPAL- Boom! 8 months just went away. That is $7,920 in interest you do not pay.
The results are less dramatic in the later periods of a mortgage, but we paid off a 30 year mortgage in 12 years doing it that way.
You illustrate well, thank you chme!!
We bought our house in 1993. Payments were $477 a month @ 8 %. I paid $677 per month and paid it off in just over half of the 15 year term.
Well other than mathematically his illustration is way off. Your $80 will help and that help will accelerate over time. But a mortgage that is 99% interest payment umm no.
Yes, it is not a 99 % interest. Would you like to tune us in further?
And where you been? You don't post as much anymore. Doing O.K.?
Here is an article that illustrates what making extra principle payments can save you. Not only shorten the life of the mortgage but how much total interest can be reduced. You will have to extrapolate based on your monthly payments and how many years remaining on your loan. If you have 29 years left on a 30 year note you can save a lot. If you only have 5 years left obviously you won't save anywhere near as much. My thoughts would be to pay the extra every month because you will be further ahead than if you just put the money in a savings account. Bob
Are you sure you can do it? Some loans do not allow it. And some won't allow any extra to be slated for principle. Review your paper work on it before making any moves.
And fiery auto crashes
Some will die in hot pursuit
While sifting through my ashes
Some will fall in love with life
And drink it from a fountain
That is pouring like an avalanche
Coming down the mountain
No mortgage insurance. VA loan Fixed rate
We're about 6yrs into the 30 yr loan.
...........😊
"Never do wrong to make a friend----or to keep one".....Robert E. Lee