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Actually, after 25 years, you're practically paying all principle (not interest). It makes much more sense to pay extra towards the principle early in the life of the loan than towards the end of it. (Since the begining of the loan is when the total amount of interest is highest. It is still at the interest rate...but the interest amount paid is higher in the beginning due to the higher principle amount of the loan).
nonetheless, congrats to you.
OOPS! I was obviously not thinking.. Long day. Thanks for the correction. My head knew it... I just reversed it.
Actually, after 25 years, you're practically paying all principle (not interest). It makes much more sense to pay extra towards the principle early in the life of the loan than towards the end of it. (Since the begining of the loan is when the total amount of interest is highest. It is still at the interest rate...but the interest amount paid is higher in the beginning due to the higher principle amount of the loan).
nonetheless, congrats to you.
Actually 25 years into a mortgage you aren't paying nearly all principal. You are still paying the exact same interest rate on the amount owed just like the first day you took out the loan
Actually 25 years into a mortgage you aren't paying nearly all principal. You are still paying the exact same interest rate on the amount owed just like the first day you took out the loan
thanks for repeating what i wrote. you clearly didn't read what i wrote. If you read carefully (maybe that's too much to ask of you), you'll notice that that's what i said.
and yes, you 'are' paying mostly principle after 25 years. go check the math. you're still paying the same interest rate, but the interest amount is less due to the lower principle amount. again, pay attention if you're going to jump at someone trying to call them out...or you'll look like a fool again, like many times before. Take a deep breath and then read carefully what you're about to attack.
thanks for repeating what i wrote. you clearly didn't read what i wrote. If you read carefully (maybe that's too much to ask of you), you'll notice that that's what i said.
and yes, you 'are' paying mostly principle after 25 years. go check the math. you're still paying the same interest rate, but the interest amount is less due to the lower principle amount. again, pay attention if you're going to jump at someone trying to call them out...or you'll look like a fool again, like many times before. Take a deep breath and then read carefully what you're about to attack.
Mostly principal would be more that 50%. Practically all isn't less than 80%. I know the exact math behind amortization. "Practically playing all principal" isn't true. I'm not sure why you'd feel attacked by my post. You are far too sensitive
Mostly principal would be more that 50%. Practically all isn't less than 80%. I know the exact math behind amortization. "Practically playing all principal" isn't true. I'm not sure why you'd feel attacked by my post. You are far too sensitive
See, i don't think you do....
assume a mortgage of 250k at 5.5 for 30 years.
first payment is about 1145 in interest and about 273 in principle.
after 25 years, you pay about 325 in interest and about 1093 in principle. (which is indeed mostly principle...)
so you see, you don't know what you're talking about.
See, i don't think you do....
assume a mortgage of 250k at 5.5 for 30 years.
first payment is about 1145 in interest and about 273 in principle.
after 25 years, you pay about 325 in interest and about 1093 in principle. (which is indeed mostly principle...)
so you see, you don't know what you're talking about.
i think you have problems reading. Most is more than half. 25 years in most of your payment is principal however it is not nearly all principal, it's not practically all principal in fact in your example it is still nearly a payment comprised of 25% interest 75% principal
i think you have problems reading. Most is more than half. 25 years in most of your payment is principal however it is not nearly all principal, it's not practically all principal in fact in your example it is still nearly a payment comprised of 25% interest 75% principal
alright buddy...now you're just trying to back pedal, and cover for your foolish original response. go fish.
whatever; i'm not wasting another minute on you.
alright buddy...now you're just trying to back pedal, and cover for your foolish original response. go fish.
whatever; i'm not wasting another minute on you.
Just to remind you of what you said and I responded to and there is no back pedal or cover
Quote:
Originally Posted by Thinking-man
Actually, after 25 years, you're practically paying all principle (not interest)
Quote:
Originally Posted by Lowexpectations
Actually 25 years into a mortgage you aren't paying nearly all principal.
I'm still unsure where your over sensitivity comes from.
S&P down 2 points again!
Negative 0.01% for YTD, when i started the "mortgage payoff project"!
So glad i didn't go the market route! i'd be depressed right now! (although i was still in the market via 401k/IRA/other investments), but imagine if i had poured 120k into the market and had been at the break even point, while still having a mortgage!
at least the mortgage is almost paid off. (4500 left )
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