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spooks
So in love!
Member since 6/06 4378 total posts
Name:
Sarah
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Paying more principal on mortgage
We have co-op and have been making a slightly higher payment on our mortgage, treating it like a 20 year mortgage instead of 30. Thing is we are planning to sell in the coming year. Should we stop making those additional payments? Its only an extra $300 a month, but still - is it better to just bank that money and let the sale pay off the mortgage?
TIA
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Posted 9/4/07 10:20 PM  |
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Prudential Douglas Elliman Real Estate
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ckone
LIF Adult
Member since 8/06 3014 total posts
Name:
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Re: Paying more principal on mortgage
Do what you feel confortable doing. If you're selling soon then why not put that little bit in the bank to help you purchase your new place.
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| Posted 9/4/07 10:24 PM |
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Re: Paying more principal on mortgage
no, mathematically, you'll still profit more by paying off more now.... then it doesn't accrue interest over the winter. Simultaneously, when you sell, less $ will be required to pay off the mortgage, so more will go in your pockets......
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| Posted 9/4/07 10:48 PM |
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raken40
soooo in love:)
Member since 5/05 4369 total posts
Name:
Karen
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Re: Paying more principal on mortgage
i did this at first with our 2nd mortgage- paid and extra pmt each month...Now i wish we had banked the money instead because we dont plan on staying here for very long and it would be nice to have that extra money in the bank!
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| Posted 9/5/07 7:37 AM |
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leese
Sarge!
Member since 5/05 1965 total posts
Name:
Leese
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Re: Paying more principal on mortgage
We did this for our condo even though we knew we were selling. It's still good to do because you are getting more equity in your home and you will see it when you sell.
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| Posted 9/5/07 8:37 AM |
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Ang-Rich
Beyond Compare
Member since 5/05 17988 total posts
Name:
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Re: Paying more principal on mortgage
Posted by marriedinportjeff
no, mathematically, you'll still profit more by paying off more now.... then it doesn't accrue interest over the winter. Simultaneously, when you sell, less $ will be required to pay off the mortgage, so more will go in your pockets......
I agree with this. IMO I think that if you can afford to keep making the additional payments that you should. The more you pay off now the less interest you will pay overall.
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| Posted 9/5/07 10:12 AM |
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ILJ619
LIF Adult
Member since 6/06 1985 total posts
Name:
Irene
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Re: Paying more principal on mortgage
i agree. the premise of paying more principal is to lower the the final amount due. so if you can keep making the payments and you will owe less and have more money back in your pocket when you sell.
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| Posted 9/5/07 4:08 PM |
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curliegirl
He's here!!!!
Member since 3/06 10128 total posts
Name:
Gina
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Re: Paying more principal on mortgage
It can go both ways.....
If you will take that $300 and invest it wisely, then yes, stop paying the extra toward the principal.
If you are going to just do nothing with the $$$$, then you should apply it toward the principal and reduce your interest.
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| Posted 9/5/07 6:11 PM |
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