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Old 10-19-2018, 05:48 PM
 
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Has anyone considered a 10 year fixed mortgage rate? What kind of percentage lenders can offer for a 10 year term? I am being quoted 4% for 15 years. It is a great way to pay allot less interest compared to a 30 year loan.
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Old 10-19-2018, 06:39 PM
 
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I did not realize you could do anything but 15 and 30 years on a home mortgage.

Last edited by MisterShipWreck; 10-19-2018 at 06:51 PM..
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Old 10-19-2018, 09:08 PM
 
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Another approach is to do the 15 year, but pay additional money each month toward your principal. Be sure to pay that separately, writing "Apply to principal" boldly on the check. Also, make sure that your mortgage does not have any sort of pre-payment penalty.
The advantage to this approach is that if you find yourself in a tight financial spot down the road, you are not on the hook for that larger monthly payment.
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Old 10-19-2018, 09:14 PM
 
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Quote:
Originally Posted by Prumio View Post
Another approach is to do the 15 year, but pay additional money each month toward your principal. Be sure to pay that separately, writing "Apply to principal" boldly on the check. Also, make sure that your mortgage does not have any sort of pre-payment penalty.
The advantage to this approach is that if you find yourself in a tight financial spot down the road, you are not on the hook for that larger monthly payment.

Agreed. Paid off our 15 year note in 13 using this method.
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Old 10-19-2018, 09:54 PM
 
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I once read that if you make 1 extra payment a year, towards the principal... You can pay off a 30 year mortgage in 23 years
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Old 10-19-2018, 11:35 PM
 
Location: Wylie, Texas
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Quote:
Originally Posted by MisterShipWreck View Post
I once read that if you make 1 extra payment a year, towards the principal... You can pay off a 30 year mortgage in 23 years
yes. You can do that by making your payments on a bi weekly basis (every two weeks). By doing so, you will make 26 payments a year which means two extra bi weekly payments that represent one extra month of payments hitting your principal and reducing the life of your loan. We are doing this currently, but we went the extra step of paying more on TOP of the biweekly payments. We are looking to get this bad boy paid off asap. Still got a long way to go. But I tell everyone how incredibly useful the biweekly method is. You are not really paying extra, basically taking that one monthly payment and splitting it in two.
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Old 10-19-2018, 11:37 PM
 
Location: Wylie, Texas
3,812 posts, read 4,382,800 times
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Quote:
Originally Posted by MisterShipWreck View Post
I did not realize you could do anything but 15 and 30 years on a home mortgage.
I admit I've never heard of a 10 year loan, but on the flip side they now offer 40 year mortgages so I suppose it makes sense to have a 10 year as well.
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Old 10-20-2018, 01:04 AM
 
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Quote:
Originally Posted by biafra4life View Post
yes. You can do that by making your payments on a bi weekly basis (every two weeks). By doing so, you will make 26 payments a year which means two extra bi weekly payments that represent one extra month of payments hitting your principal and reducing the life of your loan. We are doing this currently, but we went the extra step of paying more on TOP of the biweekly payments. We are looking to get this bad boy paid off asap. Still got a long way to go. But I tell everyone how incredibly useful the biweekly method is. You are not really paying extra, basically taking that one monthly payment and splitting it in two.
Great info, I will look into this.
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Old 10-20-2018, 04:58 AM
 
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There is an interest rate advantage going with 15 vs 30 but not much of one for going with a 10. I'm a big fan of 15 year loans and wish that was the standard to base purchase price off but I don't really see a reason to get a 10. Without much of a rate advantage you are better off with a 15 and if you want to knock it out faster make additional payments.
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Old 10-20-2018, 10:26 AM
 
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Originally Posted by wheelsup View Post
There is an interest rate advantage going with 15 vs 30 but not much of one for going with a 10. I'm a big fan of 15 year loans and wish that was the standard to base purchase price off but I don't really see a reason to get a 10. Without much of a rate advantage you are better off with a 15 and if you want to knock it out faster make additional payments.
I agree. You might be tight on money one month. But, you always have the luxury of paying extra
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