Daniel asks…

## Should i keep paying off my Mortgage or should i refi.?

We have about 20 **years** **to** **pay** **off** my **5**.85, 30 **years** fixed rate **Mortgage** we keep making extra payments on it so we have it paid **off** **in** 9 **years** instead. But then i was thinking of refi and getting a lower interest rate, putting it back **to** 30 fixed at around 4.**5**, But i don’t know **how** **to** decided if it the right thing **to** do or not, i’m just trying **to** get a lower interest rate and lower the monthly payments, but i’m wondering over the long run is it going **to** cost more **in** the long run **to** refi

### richmama answers:

Get a 15 year Fixed

Banks are still pushing ARMs and variable rates – don’t get conned.

Google

Should I re-finance my house calculator”

Do about 3 of these calculators

If you can get at least 1 1/2 to 2% lower rate – then it is worth all the closing costs.

Also if you know you will stay in the home 5 to 7 years – at least.

Sounds like you might be better off just making payments towards principal.

Before you do this make absolute sure you have at least 6 months worth of living expenses in a savings account – liquid cash.

And make sure your cars and other debt are all paid off first.

Do you have kids going to college?

“Hiding” money in a home, 401K’s, IRA’s, and ROTH’s, are a great way to look good in the FAFSA.

The least amount of cash available you have, the greater the chances for grants and scholarships based on need.

The FAFSA does not look at your hidden assetts – just your taxable money.

Google Estimated Family Contribution calculator – you’ll see.

Even if you don’t have cash to pay for college – those student loans are sweet.

You don’t have to pay them until your kids graduate from college and the interest rates are super low.

There are seminars that will charge you thousands of dollars for this info.

529’s are really one of the worst investments you can make.

Since 25% a year will be considered income towards college.

Plus, those plans carry some pretty nasty fees.

Hide your money – and hide it well – and get those grants and cheap loans.

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Susan asks…

## Finance Mortgage Q? How long will it take you to pay off the mortgage if you elected to make weekly payments?

You bought a condominium 2 **years** ago for $210,000, with a down payment of 30 percent. You took out a 7.20 percent, **5**-year Canadian **mortgage** amortized over 25 **years**.

Here is what I did:

i(weekly)=0.0680%

PV=147,000

FV=0

n=1300 (25×52)

.:PMT=170.36

Am I supposed **to** use PMT now and try **to** find a new ‘n’? Maybe ‘n’ is not even required **in** the first calculation. I am not sure. It seems easy but I can’t seem **to** figure out **how** **to** do it. Some help will be appreciated.

### richmama answers:

You could shave a few years off. However, most lenders won’t let you make weekly payments. They want the full amount each month. You could achieve a similar result by adding about 8% to each monthly payment.

Linda asks…

## Paying off mortgage quickly?

My loan amount is 88,500. At **5**.**5** % interest. I have paid for eight months. I was told if I **pay** 1 **mortgage** payment extra a year it will take 7 **to** 10 **years** **off** of the **mortgage**. I have been paying an extra 100 dollars a month towards the principal except for my first payment and when I do my taxes **in** 2011 I plan on paying an extra 1000 towards the principal. I plan on doing this every year. So if I **pay** 2200 dollars a year towards the principal on this **mortgage** **how** many **years** will it take me **to** **pay** this **off**? Also my **mortgage** payment is $630 a month.

### richmama answers:

The best answer is to google “loan amortization” you will find a whole list of websites that will allow you to play with this. You can figure out dozens of what iffs and see what works best for you.

Be absolutely certain the mortgage company is applying the money the way you intend them to. For instance my brother did something like this and they applied it to his escrow account- at the end of the year they returned the overage and of course it had not changed his loan amount at all! Have them apply it to the principal. Write that on the check and on a paper that goes with the check- then look up your payoff on line and see if they did it.

Carol asks…

## How long will it take me to pay off my mortgage?

I know that there is someway **to** figure this out, but I am horrible with numbers! I purchased my home **in** August of 2008. It is a 30 year fixed rate at 6.**5**% for a loan of 109,000. I currently have my monthly payment broken down into 4 weekly installments. With taxes and insurance I **pay** 960 a month. Being that I break it down into weekly payments, I **pay** one extra **mortgage** payment a year that goes straight **to** the principal. I also **pay** 10 extra dollars a week (I know it doesn’t sound like much, but that’s $520 more a year). I plan on increasing this amount once I get a little further head financially, but I just want **to** know, if I continue at this rate, **how** much do I cut **off** the length of my loan?

### richmama answers:

21 years 3 months there abouts

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