My First House

5.25% is that on a 15-year loan?

 

Maybe, maybe not. Still, I'm not going to risk losing my house based upon my credit card debt. I'd rather pay a little more to keep them separate.

 

10-year loan.

 

awwwwe. nice. good work on getting it paid off quickly.

and if you don't mind, how much more you paying a month on a 10 than you would have on a 30?

 

Also, too many people have no-interest loans and for years haven't paid down one cent of principle. Yeah, that's the cheaper way to live, but what are you thinking, that the principal is just going to disappear?

I agree with the sentiment that way too many folks signed their names to documents without doing their due diligence.

 

About $500 more per month. An estimate, because 5.25% rate was not available for 30-year loans. I believe 5.75% was the best rate for 30 years at the time. Given those numbers . . .

Total interest paid:

$29,000 over 10 years.

$127,000 over 30 years.

 

that is fucking awesome.

i wish i could do the same.

 

I read somewhere that paying an extra month's payment every year will knock a 30-year mortgage down to 17 1/2 years. That's what I'm trying to do. That extra month goes straight to principal.

 

Just make sure you send it as a separate check that's marked "For prepaid principal" along with your regular payment.

 

I believe it typically knocks 7 1/2 years off the mortgage.

So you are looking at 22-23 years. Still a good idea, though.

 

You guys ever watch "House Hunters" ?
It doesn't go into the details of the type of loan, etc., but does tell you what the buyer does for a living usually, and how much of a house they're buying.

I watched one over the weekend that was somewhere in Rhode Island, and it was a single mom with 2 kids -- a second-grade teacher -- and she bought a $325,000 house (moving from a rental, not selling another house) and added a bathroom to the basement when she moved in. I wondered how a teacher on that sole income could afford that mortgage.

 

Next time you drive through Providence, look for her outside a homeless shelter.