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Old 05-04-2015, 04:36 PM
 
176 posts, read 133,172 times
Reputation: 26

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Quote:
Originally Posted by emm74 View Post
The fact that you can't come up with a larger down payment is part of why you are deemed less credit worthy. Saving up the down payment demonstrates financial planning and good money management. There's more to it than simply a credit score. So no, you are not footing the bill for others, you are paying a premium to be able to get a mortgage when you otherwise would not qualify for one.

And if you want to be able to pay more against principal, it's not hard at all. Buy a less expensive house so your monthly payment is less and then put the extra towards principal.
Credit worthiness is about your payment discipline. It is not about your money-management, downpayment-ability or spirituality.

Anyways can you elaborate on how I can pay extra towards principle in mortgage?
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Old 05-04-2015, 04:38 PM
 
Location: Denver CO
19,053 posts, read 10,086,762 times
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Quote:
Originally Posted by YelloJacket View Post
Credit worthiness is about your payment discipline. It is not about your money-management, downpayment-ability or spirituality.

Anyways can you elaborate on how I can pay extra towards principle in mortgage?
First statement- no, it is not SOLELY about payment discipline. Someone can pay the minimum payment on time every month but never get out of debt and keep taking on new debt.

Paying extra - you add more money to your payment every month and note on your check that the extra is to be applied to principal.
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Old 05-04-2015, 04:46 PM
 
176 posts, read 133,172 times
Reputation: 26
Well thanks for the second piece of information - its very very useful. Do you know if I will incur prepayment penalties if I do that?

I guess we will never agree on credit-worthiness. That's fine - we can agree to disagree. As far as minimum-payment goes it is bad payment discipline to drag on the money you owe long into the future. So the minimum-payment scenario perfectly fits into my description...
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Old 05-05-2015, 08:30 AM
 
Location: Phoenix, AZ > Raleigh, NC
14,320 posts, read 17,538,176 times
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Quote:
Originally Posted by YelloJacket View Post
Well I cant blame the lenders for charging 150K$ interest on 300k$ mortgage for 30 yrs - but I still cant help the bad feeling about how hard they make it to contribute extra payment to principle and reduce the burden of interest.
What on earth are you talking about?!!? It's very simple to pay down principle. Just send a separate check.
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Old 05-05-2015, 11:13 AM
 
176 posts, read 133,172 times
Reputation: 26
I will go BPMI @ 4.375 with 5% down. To hell with FHA loans! Feeling ecstatic!
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Old 05-06-2015, 07:40 PM
 
Location: Durham NC
1,126 posts, read 1,180,359 times
Reputation: 869
Quote:
Originally Posted by YelloJacket View Post
Well thanks for the second piece of information - its very very useful. Do you know if I will incur prepayment penalties if I do that?

I guess we will never agree on credit-worthiness. That's fine - we can agree to disagree. As far as minimum-payment goes it is bad payment discipline to drag on the money you owe long into the future. So the minimum-payment scenario perfectly fits into my description...
If by credit worthiness you are talking about your FICO scores in my mind those can be meaningless. You can play games with 3 credit cards charge nearly nothing and pay off cards before statements cut monthly to game that system.
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