mortgage for dummies

kuulani

kuulani

New Member
now that i have a 30-year mortgage hanging over my head, i was wondering if any of you have any advice in paying it off.

is it better to pay as much as i can over the minimum amount due each month to pay off the loan faster? or does it even matter since the term of the loan is so long?

should i lower the amount i put into a savings each month so that i can put more into my loan payments?

:retard3:
 
Depends on the payment schedule. One thing to consider is splitting the payment in half, and making a payment every two weeks. You end up paying one extra payment a year, but you also knock off 5 to 10 years off your mortgage.
 
There is a formula out there for deriving exactly what you're asking. Its just depended upon too many solid factors (rate, term, cost, income) being balanced against esoteric functions (savings, risk tolerance, shifting tax regulations)

There is a fine line to walk in order to get the absolute best result. It does take a savvy banker/financial planner type to lay out the 10 scenarios to find out what ultimately fits your personality tolerance.
 
If you apply your entire tax refund to your principle (only) every year, it's suposed to cut something like 4-6 years off your mortagage.
 
Gonz said:
If you apply your entire tax refund to your principle (only) every year, it's suposed to cut something like 4-6 years off your mortagage.
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What if you end up having to pay extra taxes??
 
Yeah she's single...so up until I graduated she was supporting to dependants on one income, rather than two dependants on two incomes...I dunno a whole lot about how taxes work for anyone other than single people with no kids (me) and don't even know how that works in the states really but it seems that a smaller number of incomes should mean less taxes paid...
 
You're being too logical, Nix :p
In the States you have a greater tax break when you are married with children.
 
tonksy said:
You're being too logical, Nix :p
In the States you have a greater tax break when you are married with children.
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Even when your spouse has an income??

In Canada if your spouse doesn't work, or doesn't make much money, you can claim them aswell as your kids and get a tax break but if your spouse has their own income then you can't claim them on your return and only one of you can claim the kids. Therefore being married really only helps if one person doesn't work.
 
Nixy said:
Even when your spouse has an income??

In Canada if your spouse doesn't work, or doesn't make much money, you can claim them aswell as your kids and get a tax break but if your spouse has their own income then you can't claim them on your return and only one of you can claim the kids. Therefore being married really only helps if one person doesn't work.
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They have this thing called head of household that is similar to your Mother's situation. My Mother filed with it and it helped more than filing single with dependents.
 
Nix, don't try to apply Canadian tax logic to American money. you'd be horrified to learn some of the differences.
 
I sent Steve a copy of the prospectus for my RRSP, and supposedly he sprouted new hair just for the benefit of it turning an even whiter shade of white and falling out.
 
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