The Official Homeowners Thread

[mannyrs13]

Anyone that knows about mortgages or works for a mortgage lender company, got a question. Does a mortgage work like any other loan as far as paying ahead is concerned? Like my car loan was. For example if let's say the mortgage is $1000 a month. If one month I come up on some extra funds and send them $2000, do I then get to skip the next month's payment or does it just get taken off from the back end of the loan? Do any lenders do this? I'm trying to see if it's possible to cut the interest paid on the loan.

 

[Julio Jones]

I'm definitely gonna be taking notes from y'all. I wanna get some rentals in the Atlanta area, mainly near downtown cause of the continued development we got going on there. Hopefully I can get in the game in 2018.

 

[GnauzBookOfRhymes]

Found a house ..... how do yall feel avout new constriction?

Not gonna lie, most of the new housing stock over the last 15 years has been garbage.

Why is water coming from under my basement tile?

I filed a claim with my insurance just for the record. It’s ruining my tile. I can’t find the issue

I’m calling a plumber tomorrow

what ended up happening? from my experience it's usually bc whoever did the floors was cheap and didnt use a decent barrier membrane to prevent the moisture from coming up. other possibility is a leaking/ruptured pipe.

 

[666 ReVeNGe 666]

Damn

Not gonna lie, most of the new housing stock over the last 15 years has been garbage.



what ended up happening? from my experience it's usually bc whoever did the floors was cheap and didnt use a decent barrier membrane to prevent the moisture from coming up. other possibility is a leaking/ruptured pipe.

My friend been in his for 3 years and price is the same

I also hate how developments look lol

 

[GnauzBookOfRhymes]

Anyone that knows about mortgages or works for a mortgage lender company, got a question. Does a mortgage work like any other loan as far as paying ahead is concerned? Like my car loan was. For example if let's say the mortgage is $1000 a month. If one month I come up on some extra funds and send them $2000, do I then get to skip the next month's payment or does it just get taken off from the back end of the loan? Do any lenders do this? I'm trying to see if it's possible to cut the interest paid on the loan.

If you're planning on paying extra make sure to make it clear to the bank that you want the extra money to go towards the principal and not interest. And no, paying double one month doesn't mean you don't owe next month.

Honestly, unless you know for a fact that you're going to be paying extra every month for now I would put any extra you're able to save off to the side for emergencies. Home repairs bills can escalate very quickly.

 

[Larry Lambo]

Anyone that knows about mortgages or works for a mortgage lender company, got a question. Does a mortgage work like any other loan as far as paying ahead is concerned? Like my car loan was. For example if let's say the mortgage is $1000 a month. If one month I come up on some extra funds and send them $2000, do I then get to skip the next month's payment or does it just get taken off from the back end of the loan? Do any lenders do this? I'm trying to see if it's possible to cut the interest paid on the loan.

My mortgage is with Wells Fargo and I pay above the mortgage amount every month and it gets directly applied to the principal, thereby quickening the decrease in interest paid over time.

However, I'd speak with customer service at your lender to make sure that happens with your loan. I verified that before making any additional payment.

 

[mannyrs13]

My mortgage is with Wells Fargo and I pay above the mortgage amount every month and it gets directly applied to the principal, thereby quickening the decrease in interest paid over time.

However, I'd speak with customer service at your lender to make sure that happens with your loan. I verified that before making any additional payment.

Yeah I figured you couldn't just pay ahead and skip a month or two on payments. A buddy of mine was telling me about taking out a line of credit and using that towards mortgage payments. He said a personal line of credit not a heloc. Of course that would have to be analyzed since the interest would be higher than the mortgage but it would speed up the amortization rate and lower the interest.

Like take this example. Let's say a 100,000 mortgage at 4%. The amortization would be calculated at 71,870. So you're paying that much just in interest over the course of the loan. That's nearly the entire loan and that's with excellent credit. If I get a line of credit and throw 10,000 towards the mortgage it would erase s huge chunk of it. In fact, just doing regular payments, I would reach 90,000 in 2023, five whole years just to get 10k less. That's the problem with amortization. In fact, not until 2030 would I be paying more towards principal than interest. Ima research that more and it depends on the line of credit. But even at 8% interest, it's still cheaper than a 100,000 loan that the interest keeps accruing on a daily basis.

Amortization Schedule Calculator

Now what I would do is throw the line of credit towards the loan, keep paying the mortgage and just pay down the line of credit with what's left over and rinse and repeat. Can shorten the length that way.

 

[Larry Lambo]

Yeah I figured you couldn't just pay ahead and skip a month or two on payments. A buddy of mine was telling me about taking out a line of credit and using that towards mortgage payments. He said a personal line of credit not a heloc. Of course that would have to be analyzed since the interest would be higher than the mortgage but it would speed up the amortization rate and lower the interest.

Like take this example. Let's say a 100,000 mortgage at 4%. The amortization would be calculated at 71,870. So you're paying that much just in interest over the course of the loan. That's nearly the entire loan and that's with excellent credit. If I get a line of credit and throw 10,000 towards the mortgage it would erase s huge chunk of it. In fact, just doing regular payments, I would reach 90,000 in 2023, five whole years just to get 10k less. That's the problem with amortization. In fact, not until 2030 would I be paying more towards principal than interest. Ima research that more and it depends on the line of credit. But even at 8% interest, it's still cheaper than a 100,000 loan that the interest keeps accruing on a daily basis.

Amortization Schedule Calculator

Now what I would do is throw the line of credit towards the loan, keep paying the mortgage and just pay down the line of credit with what's left over and rinse and repeat. Can shorten the length that way.

Hmm. That's fairly complex but looks like it could work. I just don't know about paying higher interest to pay down a lower interest mortgage. Mentally it's hard for me to process.

Personally, I started out with a 20 year mortgage when I first purchased my home in 2008, and refi'd in 2013 down to a 15 year. At that point my mortgage went down from 6.125% to 3% and I just kept paying the same amount. I also changed my payments to every other week, which created an additional payment per year. It was around the time of the refi where the principal payment became larger than the interest. Right now the interest is like 20% of my total payment, and I owe less than half of the original loan amount.

I'm in no hurry to pay my mortgage off but just doing small things that don't really change my budget help bring down the principal. I don't let that impact my investment routine as I can get much higher returns in the market, but in a balanced financial routine, getting a guaranteed 3% return for paying the mortgage down, along with the higher risk/higher return investments I have, is not a bad thing.

 

[mannyrs13]

Ok so I stopped by my old job and was talking to a friend who had originally told me about the line of credit trick. I wss just browsing thru my bookmarks and remember I had this saved also.

How to pay off your house within 5 years using these awesome ninja tricks

So he was telling me the trick all over again and he said that yeah you'll still have a mortgage payment due the next month but you take out a huge chunk of your mortgage at one time. He told me like this. You have a $100,000 house at 4%. That's like 71,000 in interest. You take the line of credit and put it towards the mortgage, let's say 10,000. Gotta make sure the bank gives you a checkbook for this if not it won't work. Now you need to be disciplined to do this. You have let's say 2000 in income a month. Let's say your budget is 1500. You take the extra 500 and put it towards the line of credit. So on a 10,000 loan at 500 a month, how long will it take to pay off? 20 months. Maybe a month or so more if you factor interest. Plus the mortgage is still being paid off so a huge chunk is being taken off at one time. Now you may think why not pay extra, but does anyone really have 10k extra laying around? Plus the interest rates are decent at around 8%. The guy in the link explains it better. It's a strict process but will save lots of interest over time. The hard part is budgeting which should be done already anyways.

 

[Scholar]

If I can buy a crib in one blow without a mortgage should I ?

 

[Petty Crocker]

Just got a letter in the mail that my HOA fees are increasing

 

[CreepyMcCreeperson]

Has anyone had Home Depot, Lowes, or Lumber Liquidators install floors?

 

[Amerikan Melanin]

If I can buy a crib in one blow without a mortgage should I ?

Would you still have money left over for living expenses & savings?

If not I wouldn’t.

 

[OfTheCross]

Ok so I stopped by my old job and was talking to a friend who had originally told me about the line of credit trick. I wss just browsing thru my bookmarks and remember I had this saved also.

How to pay off your house within 5 years using these awesome ninja tricks

So he was telling me the trick all over again and he said that yeah you'll still have a mortgage payment due the next month but you take out a huge chunk of your mortgage at one time. He told me like this. You have a $100,000 house at 4%. That's like 71,000 in interest. You take the line of credit and put it towards the mortgage, let's say 10,000. Gotta make sure the bank gives you a checkbook for this if not it won't work. Now you need to be disciplined to do this. You have let's say 2000 in income a month. Let's say your budget is 1500. You take the extra 500 and put it towards the line of credit. So on a 10,000 loan at 500 a month, how long will it take to pay off? 20 months. Maybe a month or so more if you factor interest. Plus the mortgage is still being paid off so a huge chunk is being taken off at one time. Now you may think why not pay extra, but does anyone really have 10k extra laying around? Plus the interest rates are decent at around 8%. The guy in the link explains it better. It's a strict process but will save lots of interest over time. The hard part is budgeting which should be done already anyways.

I just applied for a LOC and got declined cause of some medical bills I got last year when i was too new in my job to qualify for the insurance.

Basically I gotta pay $2500 off before I can apply again, so it's gonna ben in January. But I'll implement that LOC trick you mentioned if it makes sense after running the numbers. I gotta see how many months it knocks out of my amortization schedule vs. how many months it'll take me to pay off the 10K

 

[LEEeveryday]

My crib got 30K in equity and i aint done shyt to it yet... I just got a lit location...