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What should you do with extra money?

Updated: 9/13/2023
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15y ago

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As long as it was honestly gained and you really don't need it, here is a suggestion: 1. Save some. 2. Invest some. 3. Give some away. 4. Use some to make your life easier or better or more meaningful. 5. Play with the rest.

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15y ago
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Q: What should you do with extra money?
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Continue Learning about Finance

What kind of things can you do with extra closing cost money besides buy down a loan?

When you close on a loan to purchase a house, you should be asked to bring a cashier's check for the exact amount that you need to pay the settlement fees. There should not be any substantial amount of money that will be returned to you.


What are interest rate?

Extra money you pay back for the priveledge of borrowing it.


How soon can you put money on the principal if you just bought a home?

You will add money to the principal in your first payment. It will be a small amount, but that is when you start. Your statement should show how much the bank puts toward principal and how much goes toward interest. Over time, more money will be applied to the principal. You can also make an extra payment or payments during the year; you just have to specify that you want it applied to the principal when you make your extra payment. You should see how to do this on your statement. It's been said that even if you make just one extra payment per year, you can pay your mortgage off eight years early.


What is th difference between interest and principal?

If you borrow some money, say 10 Dollars, the person who you borrowed from will want you to pay it back. The 10 Dollars you have to give back are the principal. Chances are, they'le want some extra money along with the principal. In this example we'll say an extra dollar. The extra money you pay back is called interest.


What methods are there to shorten the length of mortgage payments?

Paying extra money to the mortgage at each payment will shorten the length. Consulting the mortgage lender for more information is important, as some apply penalties if too much extra money is paid.

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