Your Questions About How To Pay Off Mortgage Faster

Donna asks…

How to pay off mortgage faster?

My (only) residence has a 30 yr mortgage of ~170K and I pay bi-monthly $600. With the tax refund I just got, I have ~3500 I want to put towards the house. Should I a) put down about 200 extra monthly on , interest or principal or b) pay a full month’s payment c) lump sum on either principal or interest or other suggestions? (I have no other debts- car is paid etc)

richmama answers:

Simple answer most bang for your buck apply it all to principal that’s the key for the amount of interest you’ll be charged next month and beyond. But while you’re at it why stop there, if you can afford to pay say $50.00 per month extra apply it to principal again and keep knocking it down over the years.

Paul asks…

How can I pay off my mortgage the fastest?

My boyfriend of 5 years and I recently bought a house for 70,000. We put 20% down, so now we will have to make payments on just $56,000 on a 7% ARM for 15 years. I was wondering if it’s not too insane to get a loan in my name for 28,000 and have my boyfriend get a loan for 28,000 and pay off the mortgage loan. The reason I thought of this is because less would be going out for interest since it’s a smaller amount right and we would be able to pay it off way sooner than 15 years. I just don’t like the thought of most of my money going towards interest. If anyone thinks I’m nuts say “I” and I’m willing to listen to sound advice. Thanks!
Then my boyfriend would pay on his loan a month and I would also pay on my loan. Neither one of us has to worry about someone dropping the ball on payments because we’re conscientious about bills and paying them on time.
The 7% ARM has a cap of 9%. We went with this type of loan because we didn’t have to pay any closing costs this way, and I’m not for sure if we’re going to stay in this house long enough to make up the difference of the closing costs had we gone with a 6.5% fixed rate.

richmama answers:

The interest would be the same if you got the same interest rate, because the loan would be the same just divided. Besides you would probably have to pay closing fees again, also new loan fees.
If you want to pay your loan off faster increase your payment, most of the first 5 years of payment goes to interest, by increasing you payment by $5.00 a month you would pay off much faster. By paying half you payment twice a month it would also pay off faster.
I just noticed that you have an adjustable rate mortgage, historically mortgage companies raise the rates as fast as they are allowed to according to the contract, a fixed rate at a half percent more would be much safer, and you need to check to see if there is a prepayment penalty, that is pretty standard.

Michael asks…

MORTGAGE PAYMENTS TO PAY LOAN OFF FASTER?

i have a new mortgage, and my monthly payment is 1265.00. i know by applying for biweekly payments i can save around 7 years on a 30 year fix mortgage. my questions is if i pay daily, everyday $8.00 as additional principal and at the same time im doing by weekly payment of 632.50 would that finish my loan faster? if so, how? and where can i go to get more info?

richmama answers:

Your mortgage company won’t let you make daily or weekly payments. They may not even allow yuo to make biweekly payments unless you go thru their program which charges several hundred dollars.

The reason biweekly payments pay off your mortgage faster is the 26 biweekly payments give you an extra payment each year going straight to the principal. You can accomplish the same thing by dividing your payment by 12 and adding that amount to each month’s payment earmarked as additional principal.

David asks…

How can I Pay off my Mortgage really fast in Animal Crossing City Folk?

I have all the fruits from friends and i need to get like 500 000$ to completely pay it off. Are there any tips for making Lots of Money?
Please help me.

richmama answers:

I’M SORRY, BUT IT’S REALLY LONG!!!

If you are okay with time traveling, this is what I did:

Set the date to Bunny Day(sometime in March/April on a Sunday) and go around and dig up the Bunny Eggs in the ground. Open the eggs. If there is candy inside, keep it(don’t eat it, because you can use it for something else very helpful). You can store 160 pieces of candy in an empty dresser(if you wanna keep that much). If there is Bunny Foil inside, take it to Zipper T. Bunny(by the Town Hall). He will take the foil and give you a furniture item from the Egg Series. Tom Nook will buy each furniture item for 9,000 bells, but if he gives you the egg carpet or wallpaper, they sell for 1,500-ish.

And if you kept the candy, go to Halloween at about 6pm-ish. Buy enough stationary to make 10 letters. Make 10 letters addressed to anyone, and keep them in the letters area(I mean, don’t mail them). Put 10 pieces of candy in the letters. Also, don’t keep any furniture(I dunno about clothes) in your pockets. Use a design pattern for clothes to wear, and don’t wear any accessories or clothes. Run around and look for Jack. He looks just like the townspeople in their costumes, but he won’t run after you if he sees you and asks for candy. When you find him and before you talk to him, take the candy out of the letters and give it to him. He will give you a furniture item(or wallpaper and carpet) from the Spooky Series. Put the furniture in the letter you took the candy from, because if you run into a villager with an item in your pocket and you dont give them candy, they will turn it into a Jack-in-the-box. The Jack-in-the-Box sells for 1,000-ish bells, but the Spooky furniture is worth keeping, since it sells for 10,000-ish. Do this with all the candy you got.

After that(if you want to), go to Jingle Day(December 24th) around 8pm-ish. Look around town for Jingle the Reindeer and answer his questions. If you answer them the right way, you will get Jingle furniture, which sell for 12,000-ish(I THINK it does, but I don’t remember). If you don’t get furniture, he will give wallpaper or carpet(of course), but, AGAIN, they sell for a lot less. Jingle will remember what you look like when you find him again, so you have to wear different accessories and hats each time you look for him again. You can make a TON of combinations with the accessories and hats. Also, if you don’t have very many accessories or hats(which I didn’t), you can use flowers. The roses are held by the player’s mouth, so you can wear a different flower in your hair at the same time too.

I think that’s all.

The only problem is that you get bed hair, and a bunch of weeds from all the time traveling, but it’s worth it. If you don’t have enough patience to pull all the weeds, you can look for Wisp’s(the ghost) lamp and tell Wisp to pull all the weeds. You have to find the empty lamp in your town. It will only appear on random days though. I found a lamp on a Monday, and I heard that it might only be on Mondays. It looks just like a genie lamp on the ground. When you find it, at night, you can find Wisp and trade it for a magic lamp. Go into your attic and rub it to make Wisp come out and then you can ask him to pull the weeds if you want instead of getting a gyroid or something. I haven’t given him my lamp yet, so I dunno if I have that whole thing right. I’m saving it for when I’m done with all my time traveling and tree planting or a perfect town rating. I recommend saving it for that too, if you are trying to get a perfect town also.

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