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Ian&EmmesMommy23
My family is complete!
Member since 11/08 12970 total posts
Name:
Diana
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Extra payment
I've been living in my house about a year now and was thinking of making an extra payment to reduce the life of my mortgage. i talked to someone at chase yesterday who told me he doesnt think its worth it now with the way the economy is. he thinks i should save as much as i can since banks arent giving out loans as easy as they were and especially since my house depreciated in value. do you think he's right? i mean it makes sense and plus i have a baby on the way in october.
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Posted 6/20/09 3:55 PM  |
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CAMCaps
Live Laugh Love Run
Member since 6/07 4922 total posts
Name:
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Re: Extra payment
IMO, that doesn't really make much sense. You have to repay your loan regardless of whether or not your house went down in value.
If you have the extra money available and you have an emergency fund in place (maybe this is what he meant by "save it"), I do not see why you should not make an additional payment.
Chase does not want you to pay off the loan sooner - they want all the interest they can get.
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| Posted 6/20/09 4:11 PM |
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csorisi
My 2 LOVES
Member since 11/05 1984 total posts
Name:
Corinne
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Re: Extra payment
Posted by CAMCaps
IMO, that doesn't really make much sense. You have to repay your loan regardless of whether or not your house went down in value.
If you have the extra money available and you have an emergency fund in place (maybe this is what he meant by "save it"), I do not see why you should not make an additional payment.
Chase does not want you to pay off the loan sooner - they want all the interest they can get.
I agree with the PP...the bank is making money off you why would they want you to pay it off sooner. You will save a significant amt of money by paying it off earlier. On my bank's website there is a calculator which will show you how soon you can pay off your mortgage depending on how much extra you pay a month and how much you would save in interest by doing that. It is a lot of money--better in your pocket then theirs.
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| Posted 6/20/09 7:33 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Extra payment
Posted by ShhhhTTC
I've been living in my house about a year now and was thinking of making an extra payment to reduce the life of my mortgage. i talked to someone at chase yesterday who told me he doesnt think its worth it now with the way the economy is. he thinks i should save as much as i can since banks arent giving out loans as easy as they were and especially since my house depreciated in value. do you think he's right? i mean it makes sense and plus i have a baby on the way in october.
Don't listen to him. Horrible advice. What does the "economy" and the fact that banks aren't giving loans out have to do with your current mortgage?
If you have the money to add to the principal, do it.
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| Posted 6/20/09 9:25 PM |
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Mommy2Boys
My Boys!!!!
Member since 6/06 14437 total posts
Name:
C
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Re: Extra payment
I think the guy you spoke to is an idiot. If you can make an extra payment once a year you can pay off your loan about 7 years earlier which in the long run saves you $$$ in interest.
As long as your jobs are safe and dont think you need to save the money for other things, I would make an extra payment.
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| Posted 6/21/09 1:20 PM |
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BabyBoy
is Skylar Elizabeth
Member since 5/05 4189 total posts
Name:
Tom
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Re: Extra payment
Posted by jellybean1420
I think the guy you spoke to is an idiot. If you can make an extra payment once a year you can pay off your loan about 7 years earlier which in the long run saves you $$$ in interest.
As long as your jobs are safe and dont think you need to save the money for other things, I would make an extra payment.
agree...the guy is a jerk..make a principal payment or over the course of the year, make an additional payment and you will reduce the total number of payments that are needed... Within the first year or two, it can total 7 years as stated...
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| Posted 6/21/09 1:35 PM |
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