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Old 01-28-2012, 11:12 AM   #21
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Originally Posted by msuk2girl

Yup... never assume. A bank is a business, after all, and there is a lot of fine print.

We'll have our house paid in 4 more years, cutting 23 years off the mortgage and saving ourselves~ $150k by not paying them interest over the years.
We are almost identical. We are a 25 y mortgage paid in 15 years. We have 4 years left and will save 130k in interest

23 years off your mortgage? What kind of amortization do you have? Here we have 15, 20, and 25 and I think it has been in the past year or so that they made a 30 year term available.

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Old 01-28-2012, 11:45 AM   #22
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Re: Is it true....mortgage question

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We are almost identical. We are a 25 y mortgage paid in 15 years. We have 4 years left and will save 130k in interest

23 years off your mortgage? What kind of amortization do you have? Here we have 15, 20, and 25 and I think it has been in the past year or so that they made a 30 year term available.

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The standard term for a mortgage in the US is 30 years.
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Old 01-28-2012, 11:51 AM   #23
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We will. Have our 15 year mortgage paid in no more than 6 years with paying $300 extra a month. If our snowball goes right we will actually have our house paid off in just over 5 years.
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Old 01-28-2012, 11:54 AM   #24
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Re: Is it true....mortgage question

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No. I would not make that assumption. Banks do weird things. They might be holding it and then applying it to the next month's payment or something. I'd look at your statements and see what the payments are doing.

Paying more is a great thing to be able to do! We paid off our last house in 2 years, because I was working. This house will be about 10 instead of 15.
Agreed! We always send extra and put the amount on the extra principal line on the stub and every few months we have to go back and fight them because they conveniently "forget" to put the amount towards the principal and add it to the next month's payment. Which of course means that they're charging interest on it.
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Old 01-28-2012, 11:58 AM   #25
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Re: Is it true....mortgage question

You can figure out how much of your payment goes to the principal each month by looking at your statement. You'd be surprised how little of it actually goes to lower your balance since most is always interest. Then use that figure to determine how much you can send extra a month and that will tell you how much time you're knocking off the loan.
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Old 01-28-2012, 01:03 PM   #26
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Re: Is it true....mortgage question

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Originally Posted by KrisM View Post
No. I would not make that assumption. Banks do weird things. They might be holding it and then applying it to the next month's payment or something. I'd look at your statements and see what the payments are doing.

Paying more is a great thing to be able to do! We paid off our last house in 2 years, because I was working. This house will be about 10 instead of 15.
We have had this happen on almost any loan we've ever had. We had to specifically state that the extra was to go to principal. Student loans are the worst for doing this IME.
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Old 01-28-2012, 02:57 PM   #27
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Re: Is it true....mortgage question

So if they had been applying the extra towards the next month, wouldn't I see that when I receive the statement each month? IE: wouldn't the next month say I owe less instead of the usual amount?

I will definitely give them a call Monday and ask about what happens when I sent in extra with the mortgage each month. I don't send it in seperately, I just add it into the actual payment. I really do not want to have to send an actual check each month, that is a PITA.
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Old 01-28-2012, 03:16 PM   #28
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So if they had been applying the extra towards the next month, wouldn't I see that when I receive the statement each month? IE: wouldn't the next month say I owe less instead of the usual amount?

I will definitely give them a call Monday and ask about what happens when I sent in extra with the mortgage each month. I don't send it in seperately, I just add it into the actual payment. I really do not want to have to send an actual check each month, that is a PITA.
Yes. If you don't ask you will see it on your statement. I look at my mtg statement online every month. Or every two weeks or so actually. I would be able to tell right away. However, I have mine set up to be all one payment, I don't pay the extra amount seperately so on my statement it shows up as one mtg payment every two weeks with x amount to principle and x amount to interest. Our interest rate is so low right now too that we are putting about 1100 a month on the principle and only about 100 in interest. It's nice to see the principle going town so fast.

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Old 01-28-2012, 04:21 PM   #29
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Re: Is it true....mortgage question

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So if they had been applying the extra towards the next month, wouldn't I see that when I receive the statement each month? IE: wouldn't the next month say I owe less instead of the usual amount?

I will definitely give them a call Monday and ask about what happens when I sent in extra with the mortgage each month. I don't send it in seperately, I just add it into the actual payment. I really do not want to have to send an actual check each month, that is a PITA.
You should be able to see it on the statement. Either the amount owed, or the due date would move. You might get a statement that says your payment is due on April 1, if you're ahead, but still the original payment amount. That happened to me once.
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Old 01-28-2012, 04:34 PM   #30
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Re: Is it true....mortgage question

On our statement it says amount paid toward principal and about something or other (amount we were supposed to pay). Its a line item.
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