Is there any hope for us?

[car54]

Originally Posted by Old Guard

I could not do a 15 year mortgage but it is a great vehicle. I hope to refinance into a 15 at some point.

I don't know why folks commit to 15 year mortgages. One can pay off a 30 year mortgage in any desired number of years by pre-payments of principal. Heck, just ONE extra payment per year pays off a 30 year loan in around 20 years. My son paid off his 30 year mortgage in about 9 years by prepaying principal.

That way, if some financial emergency arises, one can make the lower 30 year payment, rather than the higher 15 year payment.

PS: This assumes that the loan has no pre-payment penalty or allows large penalty-free prepayments, such as 20% of the loan balance per year.

[HB2HSV]

Well, first; a 15 year loan is at a lower % interest rate than a 30 yrs. Second, a much higher % of your monthly payments go toward paying down your principal (the amount you owe) on a 15 year loan. Third, most of us don't have the discipline to pay extra monthly payments. Most of us set up a monthly direct bank withdrawal for the mortgage, it's less painful if I don't have to write a check for it monthly 😥

I Have not check the math but only one extra payment per year seems too easy to go from a 30 year down to a 20 year. But if it's true it will be great if you have the discipline to do it.

[car54]

Oops, an extra payment a year pays it off in 26 years....

[Old Guard]

Originally Posted by car54

Oops, an extra payment a year pays it off in 26 years....

I was just getting ready to send my extra payment.

Not making fun of you but I believed it because I wanted to believe it.

[HB2HSV]

Originally Posted by Old Guard

I was just getting ready to send my extra payment.

Not making fun of you but I believed it because I wanted to believe it.

If I send in my extra monthly payment does that cut my loan down to 5 years?

[car54]

Originally Posted by HB2HSV

If I send in my extra monthly payment does that cut my loan down to 5 years?

Sure, you can pay your mortgage off in 5 years via principal pre-payments! Of course, it will take more than one extra payment per year.

There are many online payment calculators that will tell you the exact amount of the pre-payments necessary to accomplish this.

[Old Guard]

Originally Posted by car54

Sure, you can pay your mortgage off in 5 years via principal pre-payments! Of course, it will take more than one extra payment per year.

There are many online payment calculators that will tell you the exact amount of the pre-payments necessary to accomplish this.

You sure are trying hard to take the fun out of mortgage payments.

[dkf747]

Originally Posted by Old Guard

You sure are trying hard to take the fun out of mortgage payments.

The banks are the only ones having fun with your mortgage payment.

[Flamingo13]

This has gone totally OT from what the OP was asking!