Posted on 07/16/2020 9:42:15 PM PDT by rintintin
Even with a 30-year mortgage, the term is really up to you.
By making extra payments, you can knock the term down by years and years.
Sure, the prepayment option always lets you reconfigure the loan to a shorter term - but the human condition being what it is, I doubt I’d be disciplined enough to do that. I do keep it current enough by making up any escrow shortfalls each year (rather than having them added to the next year’s payments); otherwise, I’m more concerned with other debt than the mortgage.
Understood - we needed to get out of the paid-up place because it was about 3 acres of land with a lot of trees and I got tired of maintaining it - way too many leaves and dead wood to deal with and getting on a ladder with a chainsaw, then hauling the cuttings 100 yards to the road for pickup, was no longer something I wanted to do.
Now, we won’t live to pay the place we’re in off but it’s not a real concern as we currently have about $150K more equity than the mortgage is and the heirs will have a choice of having a vacation home or taking the profits from a sale.
Plus, we did enough for our retirement that the costs do inhibit us from enjoying ourselves.
Sounds like a great plan!
Just in case people are still locking, I just locked a 2.25 refi on a 30 year note.
It will save me $139 a month
Planning on continuing to make the same payment I am currently making on my new place. This will allow me to pay it off in 22 years.
They need velocity.
Kung-Flu has done some damage.
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