mortgage hump

unclehobart

unclehobart

New Member
I just wrote my last mortgage payment where the interest was higher than the principal. That means I own about 1/3 of my house. Its all downhill from here. Now is when I stop feeling like a renter and start feeling like an owner.
 
I'll be glad when I get there.
I'm on the 3rd payment. :retard2:
I pay a little on the principle, extra, when ever I can though.
 
Rock on, dude.

Contact them immediately, if you haven't already done so, and see if you are eligible to have the PMI removed from your loan. There is a percentage of balance after which you may demand this removed; it could knock hundreds off your mortgage payments. PMI is mortgage insurance; insurance YOU pay for THEM as a safeguard that you will make the mortgage payments. It's a crock, but it's standard. Have it removed if you qualify, the cutoff is usually 20% of the balance paid I think. It might also be known as MPI depending on your state.
 
Over here they only allow you to discontinue after 1/2 is paid off :( Another good trick is if the rates have dropped and you want to save money. You borrow off the mortgage...they have to open the mortgage to do that and then reclose it at the new rate. You take the money borrowed and bank it...paying it back in a lump sum (direct to capital) at the end of the year.


This works best if you have more than 50% still owing. After that..they might refuse you the load and offer an open loan instead.

Pay your mortgage off bi-weekly. They take your monthly amount and split it into two payments...but mathematically, we have 13 months (52weeks/2 = 26 bi-weekly payments or 13 months) The last 'month' goes straight to principal.

Some banks have a 10+10 or a 20+20 method...this allows you to add 20% of your payment above what you're supposed to be paying and/or make a 20% extra payment at the end of your year of the amount still owing. Both of the 20%'s apply directly to principal.

This is how I've trimmed a 25 year mortgage into 8 years paid and 5 more to go. :D
 
SouthernN'Proud said:
Rock on, dude.

Contact them immediately, if you haven't already done so, and see if you are eligible to have the PMI removed from your loan. There is a percentage of balance after which you may demand this removed; it could knock hundreds off your mortgage payments. PMI is mortgage insurance; insurance YOU pay for THEM as a safeguard that you will make the mortgage payments. It's a crock, but it's standard. Have it removed if you qualify, the cutoff is usually 20% of the balance paid I think. It might also be known as MPI depending on your state.
Click to expand...

20% is typical
 
Hmmm, I wonder if these apply to nz? :hmm: We've just been paying maximum each week (just over $1000NZ per fort-night) for little over a year now. Still a bit to go before that killer interest dissipates a bit. :mope:

Congrats though!
 
20% is the mark here too.

Great feeling indeed. So, have the calls started yet?
 
Congrats unc, feels good doesn't it.

I just recently refinanced my home. Went from 9.5% to 5% for 10 years and rolled my vehicle loan into it. Payments went down $500/month but I still pay the extra $500 most months. Home and auto should be free and clear in about 6-7 years.
 
PT said:
20% is the mark here too.

Great feeling indeed. So, have the calls started yet?
Click to expand...
Telemarketers don't bother with me. I NEVER pick it up if I don't know who it is. A refi is out of the question as I am already mid-5%.
 
But see, they can have sex every day... but that biography will only be shown a few dozen times!
 
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