Mortgage double payment payoff?
by Mortgage Rates on Sunday, November 28th, 2010 | 5 Comments
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That’s the “time value of money”. Only you can decide
how much the money is worth to you know vs. later.
Just check for fees regarding switching back an forth
between payment plans. Most standard finances
allow paying off the principle at any expedited rate
without penalty., You cna then decide on whether
to make a single or double payment each and every
month.
You will always be ahead if you don’t miss any payments but if you keep the payments doubled then you will benefit a lot more. I think it depends on what stage of life you are in. Sometimes it is very difficult to put the extra money toward that payment. lol
If you really want to play around with mortgage amounts, check out the financial calculators at http://www.dinkytown.net
You can find a mortgage calculator so precise it will tell you the impact of just one overpayment, or sporatic overpayments and give you a great idea of how best to manage your mortgage payments for maximum results.
Rather then “playing around” with your money you should compare what you could be making right now in the market, in comparison to what your interest rate is. My house mortgage is at 4.75%, my funds are returning 21% this year. It’s smarter right now (for me) to invest my money.
Are you saying that you are paying two times your mortgage? If so, then you will have it paid off in 10 years, and 3 months. So if you stop after 10 years, you only delay your payoff by 2 months or so.