Mortgage: Fixed 30 years interest rates

[thefuzz]

But when the effective rate is only about 2% (actual rate minus the impact of it being tax deductible), you are better off investing the additional $100. You are almost guaranteed to earn significantly more than a 2% return over a several year period.

Disagree with you here.

Pay off debt as soon as possible, no matter what.

The problem is, only very dedicated folks will take the time to actually invest that extra 50 or 100.

IMO a paid off house that you can never lose is an unbelievable place to be.

Pay off the house in 15 year or less, and then you can really invest when you don't have a mortgage.

[Niner National]

I can't imagine.

What's funny about that is people don't realize how much an extra $50-$100 per month every month toward principle will do for you.

Literally save you tens of thousands of dollars.

I haven't done this yet, but I plan to start soon.

I've wanted to built up a little bit of a buffer in case I ever lose my job (enough to live for 6 months or so after unemployment pay runs just in case the worst happens). Once I get to the goal I've set for myself (only need a couple thousand more), I plan to take half rental income I get from my two roommates and pay towards the principal every month. This will be the equivalent of making 6 extra mortgage payments per year.

Figure I might as well take advantage of them while I have them because I won't have, or want, roommates several years from now.

[Hotsauce]

If you want to pay extra on your house, take your mortgage amount and spilt it in half and pay that amount every 2 weeks. For example, my mortgage payment is $2000 a month. I pay $1000 every 2 weeks....will end up saving about $40,000 and paying my mortgage off about 13 yrs early

[pstall]

one other thing on the extra payment deal. make sure your provider doesn't penalize you by doing this or try to charge you a stupid jacked up fee for doing this.

and while we are on the topic of mortgages...where the heck is dimbee?

[MadHatter]

Disagree with you here.

Pay off debt as soon as possible, no matter what.

The problem is, only very dedicated folks will take the time to actually invest that extra 50 or 100.

IMO a paid off house that you can never lose is an unbelievable place to be.

Pay off the house in 15 year or less, and then you can really invest when you don't have a mortgage.

You disagree because you assume the person would not invest the money. Therefore, the problem with the proposal is not the proposal itself but the stupidity of the person.

30 year mortgage with investing the extra money would likely produce more economically than making a higher mortgage payment.....it is quite simple.

Tax effected mortgage rate is less than 3%. As long as you can invest and make a higer return than your mortgage rate (long term the avg yield in the market is about 10%), you WIN.

If a person is too stupid to invest the money and blow it, then THAT is the problem.

[MadHatter]

If you want to pay extra on your house, take your mortgage amount and spilt it in half and pay that amount every 2 weeks. For example, my mortgage payment is $2000 a month. I pay $1000 every 2 weeks....will end up saving about $40,000 and paying my mortgage off about 13 yrs early

If you are going to do that, you are better off with a 15 yr mortgage....you get a lower interest rate.

However, by following your suggestion, you have the flexibility to only make the monthly payment for a few months if needed.....15 yr mortgage locks you into the higher payment.

[Wyank]

Down to 3.1 for 30 year today. We've been looking for a house for over a year. Had one on contract and was supposed to settle yesterday but the home inspection showed the roof was leaking and owner wouldn't help towards a new roof. Looking for a house probably has been one of the most frustrating things I've ever done.

[fitty76]

Just locked in at 3.25% for my new house that I'm building. Sweeeeeeeeeeeeeet