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How can you pay off a 30-year mortgage in half the time without changing your monthly payment?

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βˆ™ 2006-08-20 14:24:53

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You can't if you go through a typical bank or mortgage company. However, you do have options. You can find a company that lets you pay less in interest and more in principle. I found a company that lets you pay your current monthly payment, but since you pay less in interst, you actually pay more to principle. This principle is put in a Cash Flow account that earns interest. After 15 years, you have enough to pay off your 30 year mortgage. If you keep paying for the remainder of the 30 years, you will then have over $1 million in your Cash Flow account to pay off your home, retire, pay for college, or whatever.

2006-08-20 14:24:53
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A bi weekly mortgage reduces the term of a thirty year mortgage to how many years?

By making half of a monthly mortgage payment every two weeks, homeowners can save a substantial amount of money over the term of a mortgage loan. Typically, if a homeowner pays half of their monthly mortgage payment every other week, they will reduce a 30-year fixed-rate mortgage by approximately seven years. The reason is simple: instead of making 12 monthly payments, homeowners are making half a payment every two weeks, resulting in 26 half payments per year, or the equivalent of 13 monthly payments in a 12-month period. In the end, the principal is paid down a great deal faster, saving a significant amount of money on mortgage interest payments. Most banks and mortgage lenders offer bi-weekly payment options, and many even offer a weekly mortgage payment option. If you're willing to pay your mortgage bi-weekly, and your lender offers the opportunity for weekly mortgage payments, take full advantage. Does this opportunity to pay off your mortgage early sound too good to be true? Well, there is one caveat: most banks that offer the bi-weekly or weekly payment options also charge a fee to sign up, often hundreds of dollars. However, there is a way to achieve the same results without having to pay these unnecessary fees. Merely make one extra monthly mortgage payment per year or simply distribute an extra month's payment evenly throughout the year by paying down the principal each month. Most monthly mortgage statements provide an extra line for an "extra principal payment." To see exactly how much money a bi-weekly or weekly payment plan can save you over the life of your mortgage loan, an online accelerated mortgage calculator will do the figuring for you. You will be pleasantly surprised at how much time will be removed from your mortgage term.


What is monthly payment on 330k mortgage?

That would depend on the interest rate and the length of the loan. Your payment for a 330,000 loan at 4.5% for 30 years would be $1672.06. If the mortgage was only for 15 years your payment would be $2524.48. If you took the same loan amount for 30 years at 5% your payment would be $1771.51. So it is hard to say what your payment would be without the additional information, but this should give you an idea of how much your payment would be for that amount.


What are the benefits of a reverse mortgage?

A good thing about reverse mortgage is that it does not have to have any income to qualify. Like the regular mortgage, it doesn't have any monthly loan payments. When your property gets sold, your mortgage will get paid off without any risk.


Can you change the names on a mortgage loan?

Not without refinancing the existing loan and changing the names on the title to the property..


What would the monthly payment be on a 203k loan?

This question cannot be answered without knowing the term of the loan and the interest rate, as well as any special terms such as an interest only period or balloon payment. To find out the monthly payment amount, gather this information and use a loan calculator widely available online to determine the exact monthly payment, or simply ask your loan officer.


If you make extra mortgage payments in a given year can you then write off the additional interest against that year's taxes?

No. The extra mortgage payments, over and above your normal monthly payment, are generally directly applied to Principal only. It is entirely allowable to make your January payment in late Dec.....and as tax essentially uses the cash basis, if this 13th payment is received by the Lender in year "X", you may get a 13th interest deduction on your 1099 Mortgage statement. While most mortgages allow prepayment without penalty, that prepayment is entirely principal, basically by definition.


What does countrywide reverse mortgage cause?

Reverse Mortgage A reverse mortgage is a loan that allows homeowners age 62 and older to access a portion of the available equity in their homes without having to sell the home, give up title, or make monthly reverse mortgage payments.


Can a person with lower income and good credit still get a mortgage without a cosigner if their down payment is large?

As long as their debt to income ratio is low enough. Generally your mortgage payment should be 25-35% of your net income (what you actually bring home)


What is the difference between charge and mortgage?

Mortgage is a conveyanceof property, subject to a right of redemption whereas a charge only gives a right to payment out of a particular immovable property without transfering it


If you have a home loan without mortgage insurance can the lender demand payment from your estate or heirs if you pass away?

Yes. The mortgage note is still a legally binding contract enforceable on the estate.


What is the best monthly mortgage calculator software?

http://download.cnet.com/Home-Mortgage-Calculator/3000-20417_4-75326943.html The above link gives you the best monthly mortagage calculator software and you can download it without thinking of getting virus as the download link is of trusted CNET and you can download securely.


How do you play World of Warcraft for free without free trail?

You can't. World of Warcraft requires a monthly payment. There is no way around this.


Which websites offer monthly mortgage calculators?

On the internet you can find many mortgage calculators, many sites offer this free service, seeks that offers more benefits without paying anything, so you save money.


What are the benefits of purchasing home mortgage insurance?

A home mortgage insurance allows a person to buy a home without meeting the 20% down payment. it also allows for more flexibility by affordable premiums. Home mortgage insurance can be transferred from one home to another.


Do you have a monthly payment to run an iPad?

There is a monthly charge for a internet account which gives you WiFi access. There is also a charge for a 3G or 4G LTE account if your WiFi supports this and you want to connect without WiFi.


Questions to Ask Your Mortgage Broker or Lender ?

Many people found themselves in trouble with their mortgages simply because they didn't understand what they were signing before they signed it. People entered into adjustable rate mortgages without realizing how much the monthly payments could increase when interest rates rose.There are questions to ask your mortgage broker or lender. This is not meant to be an exhaustive list, but it should point you in the right direction about the questions you should ask. Also remember that what a mortgage broker says in person is not legally binding. Ask them to point out their response in the mortgage papers.If this is an adjustable rate mortgage, what are the limits to raising the mortgage payment?First and foremost, you know whether or not you have a fixed rate or adjustable rate mortgage. With a fixed rate, the mortgage interest rate cannot increase due to interest rates in the open market. It is different with an adjustable rate mortgage. But even an adjustable rate mortgage will have limits to the interest rate increase, as well as the frequency of rate increases.Find out not only the interest rate differences, but find out how this will affect your monthly payment. People are often surprised at how much even a single percentage rate will increase the monthly payment.For instance, if you have a $200,000 mortgage at 5%, the monthly payment will be $1073.64. Could you afford an increase in your monthly payment of $263.00? That's how much your payment would increase if your interest rate was suddenly increased to 7%. Obtain these numbers from your lender or broker, or use a mortgage calculator to calculate them yourself. But obtain these figures and decide whether you can afford the worst case scenario.Does the mortgage contain prepayment penalties?This may not be a big issue unless you intend to pay off your mortgage early. It will become a big issue if you decide to refinance several years down the road. If there are prepayment penalties, learn what they are.What are the closing costs?Closing costs can be thousands of dollars in a typical mortgage transaction. If this is a refinance, are all of the closing costs necessary? If the property had been appraised 2 years prior, is another necessary? Is there a way to avoid prepaid points? Are there any tasks that you can perform to reduce costs?Is the mortgage being sold or will it be administered in house?This is a preference with some people. Mortgage brokers never service mortgages in house, because they do not own the mortgage; they merely find a lender for the borrower. But if you are one that prefers to meet with your banker periodically, you may consider finding a local bank that services their own mortgages.A mortgage transaction is often the most complicated business transaction, and the most expensive, a person makes in their lifetime. A little knowledge can go a long way towards keeping you on top of things, and avoiding an expected disaster in the future.


How hard is it to get approved for a 15 year mortgage?

In order to get a 15 year mortgage you need to have good credit. You must also be able to pay the larger monthly payments without any difficulty. Getting a approved for a 15 year mortgage is not difficult as long as you have good credit and can afford the payments.


How do you remove the co signer on the mortgage?

The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.The mortgage must be paid off and refinanced without the co-signer.


What is a loan payment calculator?

This Loan Payment Calculator computes an estimate of the size of your monthly loan payments and the annual salary required to manage them without too much financial difficulty.The loan calculator also assumes that the loan will be repaid in equal monthly installments through standard loan amortization.


Is it legal for a company to withdraw monthly payment using auto-pay from your personal account without your permission?

In order to have "auto-pay" YOU would have had to authorize it. How, then, could you say that it was "without your permission?"


Can you pay extra money on the principal of your home mortgage?

With most home mortgages you can make additional payments without a penalty. In fact making one extra payment a year can reduce a 30 year mortgage to around 21 years.


What is expandable mortgage?

An expandable mortgage is a Mortgage allowing the borrower to borrow more money without rewriting the initial mortgage.


Difference between simple mortgage and English mortgage?

In a simple mortgage,the mortgagor without delivering possession of the mortgaged property binds himself personally to pay the mortgage money and agrees expressly or impliedly that if he fails to pay the debt and interest in terms of the mortgaged deed, the property will be sold and the proceeds applied in payment to the mortgaged money.In an English mortgage,a mortgagor binds himself to repay the mortgaged money on certain date and transfers the mortgaged property absolutely to the mortgagee subject to the provision that he will re-transfer it to the mortgagor upon payment of the mortgaged money as agreed.


Refinancing Considerations?

Have you been solicited by a mortgage company that promises great things if only you’d just refinance your existing mortgage with them? While a lower rate can save you a lot of money over the term of your mortgage, it isn’t always a great idea to jump into a refinance situation without considering some crucial points. There are a number of factors you should think about before refinancing a mortgage. Your monthly payment will change. The whole reason most people consider refinancing in the first place is that they want to lower their monthly payments. Since housing costs can typically account for over 25% of monthly gross income, any lowering of this burdensome monthly payment can help out almost any budget. But refinancing a mortgage doesn’t come without transaction costs. You will have to pay application fees, origination fees, underwriting charges, appraisal costs, fees for credit checks, any points you pay on the new loan, as well as closing costs on the new mortgage. Find out what all the potential fees and charges will be up front. Many bankers looking to make a sale of a mortgage may gloss over these fees and try to get you to focus on the monthly savings. Don’t neglect the fees, though. Add up all the fees and transaction costs. Once you have that sum, divide the total by the monthly savings you will enjoy on the new mortgage. The answer to that arithmetic problem will represent the number of months you’ll need to stay in your house, under this new mortgage, in order to break even. As an example, let’s assume that all your closing costs and transaction fees totaled to $8,000.00. And you stand to save $400.00 per month on your mortgage payment. The math shows us that you would need to stay in this house with this mortgage for 20 months just to recoup your transaction costs. If you were planning on moving anytime in the next year or two, you may want to think twice about refinancing, even if you would save $400 per month. It’s important to understand the underlying mathematics when considering refinancing. And remember, mortgage officers are sales professionals. They make money by getting you to sign, and it can’t be ignored that there may be some bias on their part. If they try to get you to focus solely on the monthly savings and ignore your inquiries regarding fees, you could be dealing with a salesperson focused on their commission and ignoring your real needs.


Can your name be taken off mortgage without a signature?

Your name cannot be taken off a mortgage because the mortgage is owned by the lender. You remain responsible for the mortgage until it is paid off or refinanced without you.