Interest

[Popeye_Card]

We pay $45 over and that is knocking a few years at the end.

I started doing that a few months ago, my truck will be paid off in march so im planning on spending that money on my mortgage payment instead of getting a new truck and trying to get alittle ahead. I know how it works with paying mostly intereest up front, its just kind of dishartening actually seeing the numbers on paper.

I've thought about this, but unless you have a lot of liquid assets already stocked up, it's not that bad of deal in the long run to have what amounts to borrowed cash around at mortgage interest rates.

[Secret Weapon]

We pay $45 over and that is knocking a few years at the end.

I started doing that a few months ago, my truck will be paid off in march so im planning on spending that money on my mortgage payment instead of getting a new truck and trying to get alittle ahead. I know how it works with paying mostly intereest up front, its just kind of dishartening actually seeing the numbers on paper.

I've thought about this, but unless you have a lot of liquid assets already stocked up, it's not that bad of deal in the long run to have what amounts to borrowed cash around at mortgage interest rates.

this is true. while in college some economics dude said it is best to stretch out the payments over a long as time as possible, because you can invest the current cash you save and get a better return percentage wise then what you'd be losing in interest.

so instead of paying that extra 45 dollars a month to knock off a couple years at the end, it would be wiser to invest that 45 bucks in something that will bring you back a greater return.

of course this was before the current economic crisis.

[Diddy]

We pay $45 over and that is knocking a few years at the end.

I started doing that a few months ago, my truck will be paid off in march so im planning on spending that money on my mortgage payment instead of getting a new truck and trying to get alittle ahead. I know how it works with paying mostly intereest up front, its just kind of dishartening actually seeing the numbers on paper.

I've thought about this, but unless you have a lot of liquid assets already stocked up, it's not that bad of deal in the long run to have what amounts to borrowed cash around at mortgage interest rates.

this is true. while in college some economics dude said it is best to stretch out the payments over a long as time as possible, because you can invest the current cash you save and get a better return percentage wise then what you'd be losing in interest.

so instead of paying that extra 45 dollars a month to knock off a couple years at the end, it would be wiser to invest that 45 bucks in something that will bring you back a greater return.

of course this was before the current economic crisis.

Yes and thats what im doing with my student loans that are somehting like 2.75% interest. I think im paying 6.25% on my mortgage. So i guess if i can invest it at a return better then that id be better off. But ive also seen my dad get into, and fortunatly out of, a pretty bad money crisis by doing that and the investments didnt work out.

[Popeye_Card]

Yes and thats what im doing with my student loans that are somehting like 2.75% interest. I think im paying 6.25% on my mortgage. So i guess if i can invest it at a return better then that id be better off. But ive also seen my dad get into, and fortunatly out of, a pretty bad money crisis by doing that and the investments didnt work out.

It's not just investing the money. Even if you're talking about putting $20k into liquid savings, that may be a better alternative "borrowing" that money at your mortgage interest rate than having to borrow that kind of money in an emergency at higher rates.

Like I said, if you're comfortable with the rest of your liquid assets, it's a good idea to start paying down your mortgage. Because otherwise, once you send that check to the bank, you don't see that money again until you sell your house.

[AWvsCBsteeeerike3]

Has anybody read the book Rich Dad, Poor Dad or any financial planning book that deals with cash flow and money management?

[Diddy]

Has anybody read the book Rich Dad, Poor Dad or any financial planning book that deals with cash flow and money management?

No i think ive heard of it though, its amazing how long you can get by if your able to have cash flow even if your not making any money. To a point cash flow is more important then making money, at least short term.

[phins]

Since interest payments on mortgages/student loans are tax deductible in some cases, you should always pay off credit cards and auto loans first, then start putting excess towards mortgage payments etc.

[Leroy]

Since interest payments on mortgages/student loans are tax deductible in some cases, you should always pay off credit cards and auto loans first, then start putting excess towards mortgage payments etc.

Unfortunately not in my case. Housing is cheap here.

[KyCardinalFan]

The bank with whom we have our mortgae sends us an offer occasionally that takes our mortgage payment, divides it in half and allows us to make payments twice a month rather than at the first of the month. It's supposed to reduce the length of our loan by a few years but our monthly paymnets are the same.

Is this the same as what Leroy is doing by paying $45 later in the month? Is the first payment going to interest and the second going to principal?

I've been tempted to sign up, but I always intend to research it fully. Trying to figure out what's in it for them, us and where's the catch. Invariably though, the offer expires before I remember to do so. We intend for this to be our final house so we'll be keeping it for the life of the loan.

[Leroy]

The bank with whom we have our mortgae sends us an offer occasionally that takes our mortgage payment, divides it in half and allows us to make payments twice a month rather than at the first of the month. It's supposed to reduce the length of our loan by a few years but our monthly paymnets are the same.

Is this the same as what Leroy is doing by paying $45 later in the month? Is the first payment going to interest and the second going to principal?

I've been tempted to sign up, but I always intend to research it fully. Trying to figure out what's in it for them, us and where's the catch. Invariably though, the offer expires before I remember to do so. We intend for this to be our final house so we'll be keeping it for the life of the loan.

If your monthly payment is the same, you would just be saving 15 days of interest or so, but that can add up going forward with the loan. .