Comments on: Mortgage Payoff: Lump Sum or Monthly?

By: 7 Mortgage Lump Sites

7 Mortgage Lump Sites — Sun, 01 Jan 2012 16:01:28 +0000

[...] Mortgage Payoff: Lump Sum or Monthly? 35 posts – 15 authors – Last post: Jul 31, 2011 Saving Up to Pay Our Mortgage Off in a Lump Sum. No, the reason we are going to switch strategies http://www.nodebtplan.net/2009/03/05/mortg. Reverse Mortgage Q&AYou can choose to receive the money from a reverse mortgage all at once as a lump sum, fixed monthly payments [...]

By: 6 Mortgage Sum Sites

6 Mortgage Sum Sites — Sun, 01 Jan 2012 14:25:42 +0000

[...] Mortgage Payoff: Lump Sum or Monthly? 35 posts – 15 authors – Last post: Jul 31, 2011 Saving Up to Pay Our Mortgage Off in a Lump Sum. No, the reason we are going to switch strategies http://www.nodebtplan.net/2009/03/05/mortg. Geometric series sum to figure out mortgage payments | Algebra .Figuring out the formula for fixed mortgage payments using the sum of a geometric series. [...]

By: Mike

Mike — Sun, 31 Jul 2011 23:38:39 +0000

I just discovered this post. Any update?

I understand completely why someone would want to make a lump sum payment. There is value in security.
My approach is more similar to the first one.
Since I am young, have an EF, steady job and low expenses — it makes sense.
But as ‘life happens’ my strategy could change too.

By: Jennifer

Jennifer — Sun, 18 Jul 2010 12:45:41 +0000

I have a first and second as well with an 80/15 split. We are paying on the 2nd loan because this is a heloc. Although the rate is currently 2.99%, it will go up when the market rates go up. Generally a heloc is prime rate plus some percentage. And the maximum rate can go to 18% or 21%, depending on the state’s maximum interest rate. So paying off the adjustable rate while interest rates are low makes more sense to me than paying on the fixed rate loan.

By: Shannon

Shannon — Tue, 06 Jul 2010 06:37:41 +0000

We were one of the ones who did an 80/20 and now they have closed out our HELOC due to the falling prices of the home market otherwise I would just pump money back into the mortgage from our HELOC to continue to pay down the mortgage payments more.

My question is should I pay down the HELOC (the 20%) or the Mortgage (80%) first. The heloc is adjustable (in the 2-4% range) and the mortgage is fixed at 6%. I am not sure as we can’t refinance until the Heloc is paid off (although we have a decent rate now of 6% but its tempting when it gets even lower).

We are putting a 6-8 month savings together right now and have no credit card debt but after the savings I want to knock out the mortgage or Heloc just wondering which one.

Oh and for those paying off mortgages early be aware of the prepayment penalties if you have one. It’s probably still best to pay it off early and suck up the penalties. We don’t have a penalty after the first 2 years I think so we’re clear now not that I would have paid off our house in that amount of time anyway.

By: Austin TX CPA

Austin TX CPA — Thu, 03 Jun 2010 07:41:41 +0000

I think with rates as low as they are I would stick with monthly payments. Rates are just so low that you should use the extra cash flow to pay down other higher interest debt like credit cards.

By: Jenn

Jenn — Fri, 07 May 2010 20:44:02 +0000

Our only debt is the mortgage. Normally, each week we skim off the “excess” and either make an extra morgage payment or add to our retirement savings accounts. My company is in bankruptcy protection and won’t be coming out. I should be fine until July 1st but that’s about it. I won’t get a severance package but I will get paid for any unused vacation. I’ve banked just over 4 weeks so that is going to be my DIY severance package. Until I locate my next job we are temporarily suspending the weekly extra payments to the mortgage or retirement accounts and just holding the accumulating funds in a high interest savings account. I don’t like letting it just “sit there” but until I get settled into a new job I don’t want to put is someplace where I can’t easily get it back. If we need it to get us through any gap between jobs we’ll have it, but if I find a new job quickly we’ll eventually send it off to the mortgage or retirment accounts as usual, just a little late.

If we had any credit card debt I might be putting it there, with the idea that I could always take a cash advance back if I really needed to, but as far as I’m concerned if it’s hard to get it back or I’ll pay a penalty to do it, then I won’t cash I might remotely need back.

By: gypsy

gypsy — Mon, 19 Apr 2010 03:47:01 +0000

tough choice in these times for sure…

have a cushion (EF) first the experts are saying 8 months of current expenses…

my goal is to have my mtg gone in 6 years… ambitious goal did a refi, for the good rates – have been doubling up on mtg payments every month for the past year while saving approximately 1/4 of what i am paying to mtg…

i am watching interest rates on investment opportunities… but until i see something secured in the 3% plus range… I am continuing to sock it on the mtg…

when (notice the optimism) things perk up a bit i may re-evaluate… but for now this is working for me…

i am divorced and trying to do it all on my own…

my motto “obstacles are the things you see when you take your eyes off the goal”

and LOL i don’t have a flat screen tv – not till the mortgage is gone

By: Real Estate IRA

Real Estate IRA — Tue, 16 Feb 2010 05:40:35 +0000

I agree…many folks simply do not have the discipline to save the money and may end up “raiding” the funds. Most people just can’t save the money, no matter what their income is.

By: Finance

Finance — Mon, 08 Feb 2010 09:59:46 +0000

One risk to consider is the likelihood you will â€œraidâ€ the savings account. Not you specifically, but people in general. If you have the temperament that you would take the money out and buy a new TV, paying on the house is definitely the better plan. But, if you can leave the money in savings, and not touch it, building up a lump sum may be smarter in this economy.