67 minutes my boy's in for summer vacation. I am determined he will not loll around in his room playing games all the time, and when I finish "I, Claudius" I can set an example for him.
Considering the principal paid since April 1999 on the house is a letdown: 170 mortgage payments, less than 46% principal paid. I know people who refinance for thirty year terms, they can't be expecting to make mortgage payments in their seventies, wouldn't it be a comedown to start at a low principal payment and have tens of thousands of dollars in interest? Why don't they just go for 5/1 ARMs?
Also not working this summer, but will sharpen my database skills. I'm housesitting, or at least accepted an invitation to housesit, up in a Vancouver suburb for a week-and-a-half: my idea of a good cheap vacation. Dunno if the boy is coming up with me.
Summer is here, funds for summer are not
June 14th, 2013 at 11:09 pm
June 15th, 2013 at 12:32 am 1371252746
Mortgage Amortization Schedule: A mortgage loan is not a simple interest loan. You are prepaying interest with only a minuscule amount to principal for the first several years. It's a good idea to print out the whole schedule if not provided by your lender. It really helps to add extra to your regular payment having established with the lender that the added sum is to be deducted directly from principal. Many mortgage holders will allow regular payments to be divided with half applied on the first of the month and 2nd half on the 15th. This results in 26 payments [2 extra] rather than 24 which works well for folks paid bi weekly.
What activities have you researched and planned for your son? What programs are available in your community that DS is willing to participate in? What are his friends signed up for? If you are house sitting in a Vanc. suburb, who will monitor DS and logistics?
June 15th, 2013 at 01:08 am 1371254884
June 15th, 2013 at 02:44 am 1371260668
Thanks for the offer, MonkeyMama. I accept.
Let me supply the proposed balance, and the terms and rates with estimated closing costs:
Balance: $104100
Option 1: 15-year APR: 3.607% --No Discount Points-- Est. Closing: $5930
Option 2: 12-year APR: 3.4% --No Discount Points-- --No Closing Costs--
Current P & I: $1036.13
Current Escrow: $327 (taxes plus insurance)
Assume credit score adequate for these options.
June 15th, 2013 at 03:01 am 1371261678
DS can take the bus down for martial arts (3.2 km away) or DH can drive him.
I do pay taxes and home insurance through my lender.
June 20th, 2013 at 01:58 pm 1371733120
12-year mortgage is $881.40/month to pay off in 12 years. Add $145/month, and total payment is $1,026.40/month, payoff is 10 years. That is just P&I.
I am just using excel (er, open office, which is free), but I am sure there are online calculators where you can run "extra principal scenarios." Just throw in an amount and adjust until you find the 10-year-payoff.
I will run the 15-year - I assume maybe this is at another financial institution?
15-year mortgage is $749.67/month to pay off in 15 years. Add $285/month, and total payment is $1,034.67/month, payoff is 10 years. I assumed you would pay cash for closing costs. Seems like this would be a pointless refinance, since it does not reduce payment or remaining term?
June 20th, 2013 at 10:58 pm 1371765530
5/1 ARM: 2.675% Total Monthly Housing: $736.86 Total Closing Costs, Prepaids, and Reserves: $4,963.26
7/1 ARM: 3.125% Total Monthly Housing: $771.48 Total Closing Costs, Prepaids, and Reserves: $5,131.73
3/1 ARM: 2.5% Total Monthly Housing: $736.86 Total Closing Costs, Prepaids, and Reserves: $5,083.67