MY HUGE LOAN..... - Posted by GREEKVESTOR


#1

Posted by Tony on October 28, 1998 at 19:27:41:

Anyone can reduce the life of their loan simply by buying an amortization booklet. All you do is lookup your interest rate and the balance remaining on your loan and decide when you want it paid off like 25 ys 20, 18, 15, 10 etc.and then pay that amount each month. Make sure your loan doesn’t carry a prepayment penalty. Also if your computer has a money program such as microsoft money use the loan calculator and just punch in the numbers.

HAVE FUN !


#2

MY HUGE LOAN… - Posted by GREEKVESTOR

Posted by GREEKVESTOR on October 28, 1998 at 18:30:25:

Every creative idea is quite welcome, and , thanks beforehand.

FACTS:

  1. I own a 2FAM, bought in Jan. 98
  2. My loan amount is 213,000 at 30 yrs. fixed at 0 points at 7.875%.
  3. I do not like to REFI right now because of the high REFI costs.
  4. I like to lower the life of the loan.
  5. Now I pay $1557 monthly P&I

QUESTIONS:

  1. Is it right that I can lower the loan life by 7 years if i pay one extra mortgage payment per year, applied towards the principal amount?
  2. Is there a better way to lessen my loan?
  3. My lender will not change the original loan terms.

#3

Re: MY HUGE LOAN… - Posted by B. V. Hughes

Posted by B. V. Hughes on October 31, 1998 at 16:38:45:

I like the idea of going to the interest calculator book and paying the higher payment amount which will reduce your mortgage faster.

I suggest making this higher payment amount in two different checks, one in the amount of the regular payment of $1557, the second check for the difference, with a notation of Principal reduction and your account number.

Keep a log of all payments you’ve made, in case there’s a question on the mortgage interest charges to your account. Companies do make errors occasionally.


#4

You will need a finance calculator… - Posted by Soapymac

Posted by Soapymac on October 29, 1998 at 15:18:44:

to figure this out, but the first question about doing a refi is whether or not it makes sense to do so.

Does your monthly income from the renters (even if you are one of them) pay all your operating costs to own the duplex? (I’m thinking that you should have a zero or slightly positive cash flow RIGHT NOW.)

If you do not, do not refi…it would only make things worse for your lifestyle.

Would the property appraise at the amount of the refi? Again, if it does not, do not refi.

Let’s take the other side of this, also. Let’s say that the property gross income supports the property financials AND gives you positive cash flow.

Then the two questions you should answer are:

  1. If you refi to a lower rate, would your positive cash flow cover the costs of the refi for the first 2 1/2 years?

If it will, then you should consider it, because after gaining back your refi costs your finance costs are less, hence positive cash flow will be greater.

  1. Are you planning on keeping this duplex long enough to capture back your refi costs, which I am “guesstimating” at 2 1/2 years?

If you do not plan doing that, do not refi.

This is just one man’s opinion, so I will allow myself to be educated right along with you.

Cordially,

Soapymac


#5

Re: MY HUGE LOAN… - Posted by Kevin(OK)

Posted by Kevin(OK) on October 29, 1998 at 09:13:00:

I have heard of such a thing as a daily calculated, simple interest loan, with no closing costs, that allows you to pay more frequently (every day or week), and thus you pay off the loan alot quicker without making larger payments. However, if you switch to one of these loans and you don’t make the more frequent payments, it seems like it could cost you more. Anyone else heard of these?

Kevin(OK)


#6

Re: MY HUGE LOAN… - Posted by Tony_PA

Posted by Tony_PA on October 28, 1998 at 23:26:13:

Better yet, try out this web site for mortgage calculators.

http://www.interest.com/calculators.html