Is there anything wrong with doubling up on your mortgage payment every month?

[honobob]

Originally Posted by Lowexpectations

Did you have an adjustable rate or something else odd? It's uncommon for a fixed rate loan to have a prepayment penalty

Lots of low or no cost refi's will have the prepayment to cover the costs they incurred.

[Augiec]

Originally Posted by Hangster

Are you suggesting not to pay it off early so you can walk away from the asset and your mortgage agreement, just to forclose on the house and let the bank take the monetary hit?

It's obvious we would do different things with our money so the back and forth is kind of pointless. Regarding this part of your post. Yes, I'd absolutely walk away from a mortgage if the property becomes insanely upside down. Corporations do it all of the time, and they are people now too according to our esteemed Supreme Court anyway.

The day I feel sorry for a bank is the day I lose my moral compass. Banks are institutions that serve a purpose and take calculated risks. If those risks don't pan out they should suffer the consequences.

[Hangster]

Originally Posted by Augiec

It's obvious we would do different things with our money so the back and forth is kind of pointless. Regarding this part of your post. Yes, I'd absolutely walk away from a mortgage if the property becomes insanely upside down. Corporations do it all of the time, and they are people now too according to our esteemed Supreme Court anyway.

The day I feel sorry for a bank is the day I lose my moral compass. Banks are institutions that serve a purpose and take calculated risks. If those risks don't pan out they should suffer the consequences.

You are absolutely right in that we are different. Wow, I hoestly really have nothing to say in reply to your post, except that we are different.

[Lowexpectations]

Originally Posted by Augiec

It's obvious we would do different things with our money so the back and forth is kind of pointless. Regarding this part of your post. Yes, I'd absolutely walk away from a mortgage if the property becomes insanely upside down. Corporations do it all of the time, and they are people now too according to our esteemed Supreme Court anyway.

The day I feel sorry for a bank is the day I lose my moral compass. Banks are institutions that serve a purpose and take calculated risks. If those risks don't pan out they should suffer the consequences.

The banks risk typically is limited based on pmi which is common for many mortgages

[Lowexpectations]

Originally Posted by Hangster

You are absolutely right in that we are different. Wow, I hoestly really have nothing to say in reply to your post, except that we are different.

Well it's a business decision and businesses do it all the time

[Augiec]

Originally Posted by Lowexpectations

Well it's a business decision and businesses do it all the time

Exactly, as the homeowner, I'd have to consider whether the foreclosure and accompanying destruction of my credit rating is too high a price to pay for walking away from it. That would likely be the biggest impediment. Certainly not some obligation to a financial institution that would take every opportunity to screw me for a buck.

[Texas6023]

Ok. Long drawn out debate here. One last question. If I was not set up on escrow and I make my monthly payment manually can I decided when to put funds into escrow? As in if I want to pay it one lump some at the end of the year? Because I deposited money and asked for the extra to be applied to the principle... This was confirmed by the teller three times that I wanted extra to go to principle. Well my statement shows te next day there was a principle adjustment and money was put to the escrow but only a certain amount like if it is mandatory? So is it?

[MaryleeII]

Originally Posted by MichelleL66

I did that every month til I finished my mortgage. Sometimes even triple the payment. No one said anything. Paid my 30 year mortgage off in 6 years, but of course I only bought a very tiny yet affordable townhouse.

You OWN the roof over your head---nothing trivial about that!

[Hangster]

Originally Posted by Texas6023

Ok. Long drawn out debate here. One last question. If I was not set up on escrow and I make my monthly payment manually can I decided when to put funds into escrow? As in if I want to pay it one lump some at the end of the year? Because I deposited money and asked for the extra to be applied to the principle... This was confirmed by the teller three times that I wanted extra to go to principle. Well my statement shows te next day there was a principle adjustment and money was put to the escrow but only a certain amount like if it is mandatory? So is it?

If your mortgage does not have an escrow account, how can they deposit into an escrow? Something does not sound right here. I suggest you call the bank directly to get it cleared up as no one here knows the details of your mortgage or bank to really provide you with a definitive answer.

[Augiec]

Originally Posted by Hangster

If your mortgage does not have an escrow account, how can they deposit into an escrow? Something does not sound right here. I suggest you call the bank directly to get it cleared up as no one here knows the details of your mortgage or bank to really provide you with a definitive answer.

I agree, something doesn't sound right with this. If you don't have an escrow account with your mortgage, that's not something a teller is going to be able to setup and deposit money into.