Your Questions About Check My Mortgage Interest

Thomas asks…

How to I earmark a mortgage payment?

How do I earmark extra funds to make sure it goes to my principal and not interest on my mortgage payment…..I would assume you make a note on the check …..but what if you pay online?

admin answers:

Your payment coupon should let you indicate that. NOTE: If you are late making payments, the mortgage processor can apply extra payments to back interest. Not a problem if your payments are always on time.

Jenny asks…

Help!! this is very interesting check it out!!!!!!!!!!!!!! i need your help guys….?

I’m 20 years old with a $2300 a month + bonuses every 3 months ($900 minimum). I was at coral spring automall yesterday and they told me that my credit was 640 but i’m really young. My parents were financing a CRV for three years until my dad got in a crash. i think the bank is paying the car off but we are going to have to buy another one. Since my parents just got a mortgage about a year ago so their credit went down at the point where they can’t even get aproved by any bank to even finance a car. Now we have to buy 3 cars by next week. So the finace guy over there told me that if i can get a loan under my name from credit union for about $14000 for a 2007 charger with 27000 miles, he will get me another loan at %6 APR as a college student that will graduate within the next 6 moths.Do you think i will be approved for that loan????.By the way they they already gave me final prices on the cars. ((2007 charger with 27000 miles for $13000 including a $3300trade that i took over there), $14000 fr a 2005 Nissan Morano with 28000 miles and $7000 for a honda accord. today, i was think about apply for a $35000 loan for school and make the car payments through that loan. that way, i will wouldn’t have to pay so much monthly. by the way, i have enough schoolarships to continue my studies so i don’t need the loan. please comments…suggestions, ideas, anything that you can say after reading this. I’m waiting for some good help…Thanks a lot people.!!!!

admin answers:

If you can get a student loan to cover all three cars, DO IT! Student loan APRs are much lower than bank rates. And you don’t need the money for school. You have a lot longer term to pay them off so the payments will be more affordable. You can divide them accordingly with your parents.

I know of a couple that wanted to take a trip to Greece for a wedding. If they would’ve borrowed against their 401k or CD accounts, it would have cost them 6% to 8% APR. The wife took out a student loan for the amount at 3% APR. Quite a savings.

Susan asks…

Should I refinance my fixed 15 year 5% mortgage for a fixed 30 year 5.75% mortgage to free up cash flow???

I am thinking of refinancing so I can free up monthly cash flow to invest.

I have been looking at a refi from www.madrate.com (yes, 5.75% check it out!!!) and they offer a $289 fee (includes credit, doc prep, processing, underwriting, tax service & flood certification fees)

I have been reading various advisor recommendations to have a 30 year mortgage rather than a 10 or 15 so to free up investment cash flow. (www.ricedelman.com) Rates are still pretty low right now and are very attractive.

I know that when I pay mortgage interest, it is paid from my after tax income. It is also tax deductible at the end of the year.

I also know that when I earn interest in the stock market, this is pretax interest. If I earn 8% in stocks, my effective rate earned will be lower since I need to pay taxes on it at the end of the year as well.

I can handle the 15 year payment just fine
No PMI
Home is worth $300k – balance is $178k
I have 11.5 years left on the mortgage – got it in 2005

admin answers:

I think you’re missing a MAJOR factor here.

Even if you’re successful in investing the difference over the remainder of the 15 years (that assumes that the earnings on the invested part, after taxes, is more than 5.75%)… Will the earnings in years 16-30 beat what you could earn by investing the entire sum (since you would have paid off the mortgage).?

Helen asks…

Do I QUalify for a Federal Rebate?

I MADE 18k IN 2007, BUT PAID NO FEDERAL TAX. NONE WAS TAKEN FROM MY CHECK BECAUSE I CLAIM 6, AND EVERYTHING IS EIC.
IN 2007 MY CHILDREN WERE 6 turning 7 AND 16 TURNING 17-I RECEIVED 5K AS A REFUND FOR MORTGAGE INTEREST AND THE 2 KIDS-WHAT AMOUNT OF REBATE SHOULD I EXPECT?

admin answers:

$300

David asks…

Conventional 30 year Fixed Home Loan. Principal Balance $93,445.16?

Approximately how long would it take to pay the mortgage off? Also is Bi-Weekly payment option really worth it? I know they charge a setup fee for about $395.00. But wouldn’t it be better to pay an extra $200.00 per month x 12 months (=extra $2,400.00 per year) toward prinicple with a separate mailed in check and letter of explanation with the words “Payment Toward Principal” written on the check.
Interest Rate: 8.990% Fixed.

This is response to “Mortgageman” who posted this reply:
}} If you just got that loan and you have a 30 yr fixed, you would pay that loan off in 179 months with $200 extra a month. Don’t pay to have bi-weekly set up. You are right. Do it yourself. {{
======================================
Also, the monthly mortgage payment is: $752.45 deducted from my checking account each month with a 30 year fix conventional loan. So, with paying an “extra” $200.00 per month, I can pay this home off in about less than 15 years then. Even with 8.99000% interest rate.

admin answers:

Converting your monthly payments into bi-weekly payments is 752*26/24 = $815. Basically it adds $63 to your monthly payments, so you are correct, your $200 extra works better.

And your math is correct, adding $200 to your monthly payments will pay it off in 15 years. Using the bi-weekly option would pay it off in 22 years. The best advantage to bi-weekly payments though is if you yourself also get bi-weekly. Then your income and your mortgage are on the same cycle and it’s simple to manage. It’s dumb that they charge a setup fee though, I’d argue that.

Powered by Yahoo! Answers

Leave a Reply