Comments on: Should I Prepay My Mortgage? http://www.GenYwealth.com/prepay-my-mortgage How to Get Wealthy Wed, 14 Dec 2011 19:37:12 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: RJ http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-475 RJ Mon, 30 Aug 2010 15:34:20 +0000 http://GenYwealth.com/?p=887#comment-475 Jenny, You have a few options. Without knowing all the details, it's hard to know what is best. In order to pay it off inside five years, you have a few options. First, you can look to refinance it. Mortgage rates are low. Second, you can prepay the principal. Hopefully your mortgage company has calculators to see what exactly it would take to do something like this. Hope this helps. RJ Jenny,

You have a few options. Without knowing all the details, it’s hard to know what is best.

In order to pay it off inside five years, you have a few options.

First, you can look to refinance it. Mortgage rates are low.

Second, you can prepay the principal. Hopefully your mortgage company has calculators to see what exactly it would take to do something like this.

Hope this helps.

RJ

]]> By: Jenny http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-467 Jenny Fri, 27 Aug 2010 00:12:25 +0000 http://GenYwealth.com/?p=887#comment-467 I want my house to be finish paying for 5 years and I don't know if it will cost much on the interest. I applied a 20 years plan and I wanted to reduce it to 5 years. How will I do it? DO I have to make arrangement because I already started paying the 20 years plan. I want my house to be finish paying for 5 years and I don’t know if it will cost much on the interest. I applied a 20 years plan and I wanted to reduce it to 5 years. How will I do it? DO I have to make arrangement because I already started paying the 20 years plan.

]]> By: Sarah http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-368 Sarah Sat, 03 Jul 2010 07:41:50 +0000 http://GenYwealth.com/?p=887#comment-368 contributing to retirement accounts and making extra house payments. We definitely want to be mortgage free way before retirement and aim to pay our 30 yrs mortgage, a large one, within 18 years contributing to retirement accounts and making extra house payments. We definitely want to be mortgage free way before retirement and aim to pay our 30 yrs mortgage, a large one, within 18 years

]]> By: RJ http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-285 RJ Thu, 20 May 2010 22:04:20 +0000 http://GenYwealth.com/?p=887#comment-285 @Patrick - Great question and Joe is right on with his answer. @Patrick – Great question and Joe is right on with his answer.

]]> By: JoeTaxpayer http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-284 JoeTaxpayer Thu, 20 May 2010 13:27:09 +0000 http://GenYwealth.com/?p=887#comment-284 Patrick - Here's a subtle, but important point. The change in value in the house should be unrelated to this decision. Think about it. Whether or not the house rises in value and by how much should be considered before you buy it, with cash or financed. In the prepay discussion, whatever you decide, the choice is between the other return you might get on the cash, or the 6% return you get on prepaying the mortgage. Unless one has very little equity and ponders a 'walk' I don't quire see why the 15 year price would be part of the decision. The house will grow to that value regardless. Make sense? Patrick –
Here’s a subtle, but important point. The change in value in the house should be unrelated to this decision.
Think about it. Whether or not the house rises in value and by how much should be considered before you buy it, with cash or financed.
In the prepay discussion, whatever you decide, the choice is between the other return you might get on the cash, or the 6% return you get on prepaying the mortgage. Unless one has very little equity and ponders a ‘walk’ I don’t quire see why the 15 year price would be part of the decision. The house will grow to that value regardless. Make sense?

]]> By: Patrick http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-282 Patrick Thu, 20 May 2010 04:01:48 +0000 http://GenYwealth.com/?p=887#comment-282 A point my wife brought up in this discussion was what do you expect your house to be worth when you are done making all your payments? If your house was purchased for $60,000 and in 15 years is going to be worth $90,000 was it worth prepaying to get there? Just a thought. Also, does anyone know an easy formal to use in excel 07 for getting a 5% growth on a house purchased for $225,000? A point my wife brought up in this discussion was what do you expect your house to be worth when you are done making all your payments? If your house was purchased for $60,000 and in 15 years is going to be worth $90,000 was it worth prepaying to get there?

Just a thought. Also, does anyone know an easy formal to use in excel 07 for getting a 5% growth on a house purchased for $225,000?

]]> By: Crystal http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-129 Crystal Tue, 26 Jan 2010 23:24:55 +0000 http://GenYwealth.com/?p=887#comment-129 In case it may help to know, my husband is 26 and I'm 27. We started saving for retirement since we started our first "real" jobs out of college in 2005. In case it may help to know, my husband is 26 and I’m 27. We started saving for retirement since we started our first “real” jobs out of college in 2005.

]]> By: Crystal http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-128 Crystal Tue, 26 Jan 2010 23:22:20 +0000 http://GenYwealth.com/?p=887#comment-128 No. Our most important goal is early retirement. I contribute the maximum 6% that is matched to my 401k and have fully funded a Roth IRA since 2007. My husband contributes to his pension plan. We also have a Scottrade account and multiple savings accounts that will bridge the gap between our retirement and "normal" retirement age. My husband finishes graduate school this summer and that money is going to be redirected into another Roth IRA and an account for a future rental property. His masters will also give him a small guaranteed raise...we'll be putting that into the rental property account as well. So, no, we definitely are not slowing down our retirement contributions. :-) No. Our most important goal is early retirement. I contribute the maximum 6% that is matched to my 401k and have fully funded a Roth IRA since 2007. My husband contributes to his pension plan. We also have a Scottrade account and multiple savings accounts that will bridge the gap between our retirement and “normal” retirement age.

My husband finishes graduate school this summer and that money is going to be redirected into another Roth IRA and an account for a future rental property. His masters will also give him a small guaranteed raise…we’ll be putting that into the rental property account as well.

So, no, we definitely are not slowing down our retirement contributions. :-)

]]> By: Paul @ FiscalGeek http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-124 Paul @ FiscalGeek Mon, 25 Jan 2010 23:20:14 +0000 http://GenYwealth.com/?p=887#comment-124 I'm with Joe 100%. At this point the difference in return vs. the mobility and freedom of no payments is priceless. Personally I've reached a point myself where I'm ready to make a break for it, and not being saddled with a large mortgage would be such a blessing. Best of luck to you guys wish I was thinking about this stuff when I was your age. .-= Paul @ FiscalGeek´s last blog ..<a href="http://feedproxy.google.com/~r/Fiscalgeek/~3/5tey0MlZLPw/">Save by Dropping Your GAP Automobile Insurance</a> =-. I’m with Joe 100%. At this point the difference in return vs. the mobility and freedom of no payments is priceless. Personally I’ve reached a point myself where I’m ready to make a break for it, and not being saddled with a large mortgage would be such a blessing. Best of luck to you guys wish I was thinking about this stuff when I was your age.
.-= Paul @ FiscalGeek´s last blog ..Save by Dropping Your GAP Automobile Insurance =-.

]]> By: JoeTaxpayer http://www.GenYwealth.com/prepay-my-mortgage/comment-page-1#comment-122 JoeTaxpayer Mon, 25 Jan 2010 22:38:18 +0000 http://GenYwealth.com/?p=887#comment-122 To gen Y's point, I am a late boomer (b 1962) but late to marry and have the kid as well. She's 11, 5th grade. 7 more years of school. We've saved for college but would be extra comfortable knowing the mortgage is fully paid by the time she starts school. So, that's what out plan is and we are on track for that. While 5% return isn't great, I've learned that you can't put a price on sleeping well at night. Having no mortgage payment is freedom, not 100%, but a large payment you won't have to think about. Freedom for one of you to stop working, or freedom to save more to retire early. To those who would argue against the choice - sometimes a 5% fixed just makes more sense than 10% with a 14% standard deviation.... .-= JoeTaxpayer´s last blog ..<a href="http://feedproxy.google.com/~r/Joetaxpayer/~3/01Gv4Qme2n4/">A Roth Roundup</a> =-. To gen Y’s point, I am a late boomer (b 1962) but late to marry and have the kid as well. She’s 11, 5th grade. 7 more years of school. We’ve saved for college but would be extra comfortable knowing the mortgage is fully paid by the time she starts school. So, that’s what out plan is and we are on track for that.
While 5% return isn’t great, I’ve learned that you can’t put a price on sleeping well at night. Having no mortgage payment is freedom, not 100%, but a large payment you won’t have to think about. Freedom for one of you to stop working, or freedom to save more to retire early.
To those who would argue against the choice – sometimes a 5% fixed just makes more sense than 10% with a 14% standard deviation….
.-= JoeTaxpayer´s last blog ..A Roth Roundup =-.

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