OT: [censored] thread, May, READ RULES IN TOP POST

[Indiana]

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
indi,

i understand that there are several good reasons not to pay off specifically long term fixed rate with tiny rate loans, especially when they are being put in the tax shelters we call homes.

also, congrats on there only being a couple of beats in those interior shots. the most striking of which is the old person fabric scheme. (ottoman/chair/curtain for kitchen doors) eek. if that thing in the corner is an entertainment unit, it's one of the most tasteful ones i've ever seen.

[/ QUOTE ]

citanul,

that's not my furniture, that was the previous owners stuff. She was like 65 yrs old. I have Bernhardt couches, a 50 inch sony baller LCD and a nintendo Wii in that front room now.

As for why you don't want to make $100.month extra payments or whatever is kind of subtle and I'm shocked that most americans are falling for doing this. Then answer is this: When you have a 30-yr fixed loan like I do, regardless of whether or not you pay extra towards the principal every month, the bank DOES NOT adjust your payment schedule at all. So you still make the following payment the next month regardless of how much extra you pay the previous month. For this reason it is smarter to put the extra 100 bucks per month in an interest barring account at the bank, and just pay the house in full at year 23 because then you get to keep your interest as an extra bonus.

[/ QUOTE ]

Nice house Indy.

From my understanding (could be wrong), if you pay additional $100 to the principal, even though the next monthly payment remains the same but the principal part is slightly more and interest part is slightly less. so the interest you gain from $100 investment is balanced out by the interest you pay to the mortgage.

check out this mortgage calculator

[/ QUOTE ]

Yes this is a true statement also. I mean if your monthly payment stays the same every month (banks dont redraw payments, its always the same amount), aren't you better off just putting that extra principal payment into an interest baring account and just paying off the house in full at year 23?