Your Questions About How To Pay Off Mortgage In 9 Years

Paul asks…

My husband said we have to wait another 9 months before I get pregnant, I need to find ways to cope?

My husband agreed to start trying for a baby in 9 months. We have been together for 5 years.

He wants to wait so that we will pay off our mortgage while we are trying for a baby. The house will be paid off 3 months after we start trying.

He refuses to start earlier because we don’t have the extra cash for a baby now because our mortgage payments are so high.

I think about having a baby everyday and it makes me sad when I see babies, baby clothes, etc.

What makes it worse is that a friend of mine is pregnant after knowing her boyfriend for a year.

Its hard to be happy for her when I have been looking forward to having a child with my husband for years.

How do I pass time so I am not bummed out?

How do I get the idea of having a child out of my head until its time to try for one?

richmama answers:

If you’ll have your house paid off in a year, that’s great. Think of ways to spend that extra money. Take this time NOW to look up college savings plans. Research all the baby products you could use.

Maria asks…

Suppose you wanted to take out a mortgage for $100,000 with monthly payments at 9% per year, but you could ?

only afford $800 per month in payments. How long would you have to make payments in order to pay off the mortgage, and how much in interest would you end up paying over the course of the mortgage?

The formula is P= (rM)/(1-(1+(r/n))^-nt/n

the n at the end is dividing by the whole quantity.

P=payment
M=mortgage amount
r=annual rate
t=number of years
n=number of payments per year

richmama answers:

I’m doing this slowly, through lots of detail…..

Plug in what you know:

P = 100000*9%/(1-(1+9%/12)^(-12*t))/12

We want the payment to be 800:

800 = 100000*9%/(1-(1+9%/12)^(-12*t))/12

Solve for t:

800/100000 = 100000/100000*9%/(1-(1+9%/12)^(-12*t))/12
8/1000 = 9%/(1-(1+9%/12)^(-12*t))/12
0.008 = 9%/(1-(1+9%/12)^(-12*t))/12
12*0.008 = 9%/(1-(1+9%/12)^(-12*t))/12*12
12*0.008 = 9%/(1-(1+9%/12)^(-12*t))/12*12
0.096 = 9%/(1-(1+9%/12)^(-12*t))
0.096/9% = 9%/(1-(1+9%/12)^(-12*t))/9%
1.066666 = 1/(1-(1+9%/12)^(-12*t))
cross multiply:

(1-(1+9%/12)^(-12*t)) = 1/1.066666
(1-(1+9%/12)^(-12*t)) = 0.9375
(1-(1+9%/12)^(-12*t)) = 0.9375
(1-(1+0.0075)^(-12t)) = 0.9375
1-(1.0075)^(-12t) = 0.9375
-(1.0075)^(-12t) = 0.9375 – 1
-(1.0075)^(-12t) = -0.0625
(1.0075)^(-12t) = 0.0625
ln[(1.0075)^(-12t)] = ln(0.0625)
(-12t)*ln(1.0075) = ln(0.0625)
-12t = (ln 0.0625) / (ln 1.0075)
t = (-1/12)*(ln 0.0625) / (ln 1.0075)
t = 30.92192 years (30.92192*12 = just over 371 months)

Lisa asks…

We Divorced 9 years ago DIY the House now has 100K equity, how much am I entitled too?

Hi

My wife and I did a (DIY) divorce in England 9 years ago (no Children Then but I have a 4yr old now), she was left in the home as she did’nt earn enough to buy me out or afford or qualify for a new mortgage, there was little equity then.

Recently her solicitor has contacted me to sign forms to take my name off the deeds to the home so she and her new partner can legally take over a new mortgage and own the home outright.

She and her new partner have paid the mortgage for the last 8 years. The forms say they will pay off the joint charges on the house from 9 years ago of 25K, there is 100K equity in the house right now, am I entitled to any of it?

I feel as though I am entitled to sme of the current equity as I was married for 18 years to her and I left all of the contents with her when I left and I did help her financially for many years before I left.

richmama answers:

You should be 50%…You will need to talk to a lawyer though. Don’t sign anything to take your name off of it. Till you talk to a lawyer.

Steven asks…

How can my husband and I bring up our credit score to refinance in about 9 months?

My husband’s middle credit score is 599 and mine is 587. We bought a house in Nov 2006. It’s an ARM 80/20 loan which means our payment will go up in Nov 2008. We both have a lot of charge offs and collections from previous divorces but, we have paid some off and we are working to pay off the othres. We both have been told that when refinancing they only look at the last two years. Is this true? We have heard so many different stories from lenders and we are really confused right now. Is it impossible to refinace with scores this low. What we don’t understand is we have paid the mortgage on time every month and also our car payment but it don’t seem to help any. What can we do?? Please advise us both.

richmama answers:

BrownSugar,

The truth is . . . The 24 months is what matters. . . If you expect a refinance with the tightening of credit that is going on in America, you need to make sure the 24 month period the potential lender looks at is spotless AND that you address and pay-off old collection items.

You can try to ask EACH creditor for a pay-for-deletion arrangement which you must send in writing and send via certified mail to the collection agency. Do NOT talk over the phone about these matters.

If they agree to it in writing when corresponding back to you (and have signed the letter), then send the collection agency the payment as promised.

Then forward a letter to the credit bureau requesting deletion of the collection item. Enclose a copy of the “agreement letter” AND a copy of the cleared check as proof of the truthfulness of your claim.

Once these collection items are removed from your credit report, you should see a rise in your FICO score.

And of course, continue to pay ALL bills on time, without exception.

A form letter for this pay-for-deletion arrangement is contained in the link.

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