Your Questions About How To Pay Off Mortgage

Sharon asks…

Keep stock portfolio or pay off mortgage?

ARM will change in 2010. I’ve owned it for three years. I owe about as much on home as I own in an investment portfolio. Is it better to sell off the investments, take the tax liability, and pay off the mortgage? Right now I’m using the portfolio to pay the mortgage as I stay at home with my kid and my husband is a student. So refinancing is out of the question. Any thoughts, wise YA folks? I really don’t know how to make this decision.

richmama answers:

Consider this, you pay off the mortgage but have no savings. How do you continue to stay home and go to school? If refinancing is out of the question now, it will be much worse if you had no assets and were looking to take cash back out of the house. Make sure your investments are widely diversified and keep your assets fluid. Once you or your husband are back to work and as you approach the ARM change in a couple years, you will be better poised to make this decision.

This is not intended as legal or financial advice. Please consult your individual adviser, or contact me to provide all the details before taking action.

If you have any other questions, or need assistance, please contact me via my website http://www.slarson.com/contact or email me directly at Steve@SLarson.com

Donna asks…

Help me understand how to pay off mortgage within 30 years?

My principle mortgage balance is $187,000 and my monthly principle payment is $240/mo (of course I have tax, interest, and escrow payments to pay). So, $240 x 12 months = $2,880 X 30 years = $86,400. How can I pay off the $187K, Im only about $100.6K short! or am I doing it wrong?

Please don’t mock…just to be educated how it works.

Thanks!

richmama answers:

The principle portion of your payment INCREASES EVERY month – near the end of the loan, you will be paying a lot more principle than interest in each payment

just look at an amortization table for your loan

Betty asks…

How to pay off mortgage in less than 5 years?

I have heard of it on the news, but not sure how it works in detail. Why didn’t more people use it?
How does it work in details? Where can I find more information about this?

richmama answers:

Because most people cannot afford to pay 5 times their normal monthly mortgage payment.

Mary asks…

What can I sell temporarily to pay off my mortgage?

I want to sell something just long enough to pay off my mortage. I want to be mortgage free in one year or less. I can do crafts,etc. I have to accomplish this without using my own income as I just can’t. Anyone trying to do the same thing or have you paid off your mortgage without using your own income? If so how did you do it? Anyone got any ideas?

richmama answers:

If you have any spare electronics that function laying around you could sell those on ebay or to a local pawn shop.

If you want to do some things with crafts, you could talk to the art teacher at a local school or a community function that does arts and crafts, sometimes they’ll pay, sometimes they want you to donate, but what can it hurt to ask?

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