[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y ] [Search | Extra juicy! | Home]

I have about $600 a month left after expenses. My Grandma keeps

This is a blue board which means that it's for everybody (Safe For Work content only). If you see any adult content, please report it.

Thread replies: 15
Thread images: 1

File: 1473541032473.png (7KB, 420x420px) Image search: [iqdb] [SauceNao] [Google]
1473541032473.png
7KB, 420x420px
I have about $600 a month left after expenses. My Grandma keeps telling me to pay off my house quicker than investing right now.

I think the way my mortgage is set up, that paying ahead only helps my benefit. I will still be paying the interest rate for 30 years, whether I pay it off in 30 or 10, So basically it doesn't make a difference right?
>>
>>1501219

go back to /o/
>>
The faster you pat it off the less interest you pay
>>
>>1501219
$300 toward investments. $300 toward your house.
What if like you are almost done paying your house and then you get sick and you already paid off 80% of your house but yet the bank takes it because you still have 20% left to pay.. if you are sick and unable to work your investments should be able to pay for the house by then.
>>
>>1501227

But aren't mortgages like car loans where making larger payments has no affect on the interest you pay in the end?
>>
>>1501230
lol WHAT?

Please link to retarded bank sites that claim if you pay shit off early, you still pay interest! I have to see this!

I mean I know some fixed-interest loans have an economic penalty a bank might apply if you pay off a loan early, so they can still get some profit, but seriously, lol
>>
>>1501230
If you pay off your loan in 10 years they won't continue to have you pay interest for 30 years lol
>>
>>1501230
No
I pay a decent amount extra towards my car loan each month. This money reduces the principal owed. When I pay off the principal early, less interest is accrued.

You might have gotten scammed into some fucked up loan where that can't occur, but it's more likely that paying more per month leads to an earlier payoff and less owed.
>>
>>1501255

Really? When I asked my credit union about paying off early, they said making payments larger than what is owed doesn't change the length of my loan, it only pays off future monthly payments. But I'm still paying for the full term and interest.
>>
>>1501219
Depends on your risk tolerance and interest rate senpai.

If I had a 3% mortgage (which has tax deductible interest), it acts like paying ~2.2-2.4% interest since you get a income tax deduction.

If you have good cashflow and some money set aside, you could invest in high yielding assets such as Stocks, Corporate Bonds, etc... and get ahead by not paying your mortgage any more than you need to.

Of course, this requires discipline and a longer term perspective.
>>
>>1501271
you need to do what's called a "principal only" payment...
>>
>>1501271
>>1501281
This

They're taking your extra payments and putting them aside as 'payments in advance' - that's fucking cringe.

Do this do this do this
>>1501281
>>
>>1501219
Assuming you don't have any bullshit early payment penalty tied to your mortgage, it's just figuring out what number is higher.
Let's assume you have a 4% rate on mortgage. What that means is that you gain -4% interest on the money you owe. If investing will give you more than +4% interest, you should invest. If it gives you less than +4%, you should "invest" that money into paying the principal of your mortgage.
>>
>>1501230
Depends how it's set up. At my small town bank there is no penalty or reward for early payment. So, if i had a $100,000 mortgage on a fixed 30 year note then wtf ever that number is, is what i pay. Rather i pay today or 30 years from now i still owe roughly 200k.

I would never do business with a bank that had early payoff fines. Stupid fucks. Aside from taxable income why the fuck are they turning down money?
>>
>>1501280
>invest
>stocks
>bonds

Fucking kek.
Thread posts: 15
Thread images: 1


[Boards: 3 / a / aco / adv / an / asp / b / bant / biz / c / can / cgl / ck / cm / co / cock / d / diy / e / fa / fap / fit / fitlit / g / gd / gif / h / hc / his / hm / hr / i / ic / int / jp / k / lgbt / lit / m / mlp / mlpol / mo / mtv / mu / n / news / o / out / outsoc / p / po / pol / qa / qst / r / r9k / s / s4s / sci / soc / sp / spa / t / tg / toy / trash / trv / tv / u / v / vg / vint / vip / vp / vr / w / wg / wsg / wsr / x / y] [Search | Top | Home]
Please support this website by donating Bitcoins to 16mKtbZiwW52BLkibtCr8jUg2KVUMTxVQ5
If a post contains copyrighted or illegal content, please click on that post's [Report] button and fill out a post removal request
All trademarks and copyrights on this page are owned by their respective parties. Images uploaded are the responsibility of the Poster. Comments are owned by the Poster.
This is a 4chan archive - all of the content originated from that site. This means that 4Archive shows an archive of their content. If you need information for a Poster - contact them.