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Respected Contributor
Posts: 3,513
Registered: ‎10-27-2010

Re: Proud owner of new 3.25% mortgage


@sgraham30 wrote:

@libbyannE, I just checked an online mortgage calculator. For a 15 year loan, the monthly payment before escrow charges are added is $714, for a 30 year loan the monthly payment before escrow charges are added is $442. The difference between a 15 year & 30 year mortgage is $272 per month, which to me, is not a "little more each month." I've been sending an extra $152.63 per month towards principal. Starting 02/2017, I'll be sending an extra $200 per month to be put towards principal.

 

 


@sgraham30

The savings in the long run are huge, but you're right that I should have been more careful to take time to be clear. I am so sorry. What I meant was that the monthly outlay for a 15-year loan was relatively low when compared to the the huge costs in compound interest over the term of a 30-year loan. Thanks for giving me a chance to explain. But it isn't easy (and wasn't easy for us!)  to come up with that extra money per month. We lived on my income, and my husband.'s salary went for the mortgage and extra payment each month. Tight belts! It's great that you are sending an extra $200 a month. I am sorry I was unclear and that my post came off as high-.handed, which is not what I meant or felt at all. Tx for your comment!!!

Trusted Contributor
Posts: 1,645
Registered: ‎03-14-2010

Re: Proud owner of new 3.25% mortgage

@libbyannE, your post didn't come off as high handed at all. I'm single so I'm the only one paying on the mortage. If I had another person here whose salary I could depend on to help with other bills, I would have most definitely gone for the 15 year mortgage.

Respected Contributor
Posts: 4,010
Registered: ‎08-29-2010

Re: Proud owner of new 3.25% mortgage

@sgraham30  Kudos to you!  This is an effort you will never regret.

 

We did the same thing, and I enjoyed tracking our savings on interest every month.  We saved a whopping 48¢ after the first increased payment, but it didn't take long before it was $300 and kept increasing exponentially until the balance was manageable for us to pay off.

 

I wish the same success and sense of accomplishment for you, @sgraham30.   Merry Christmas!

Strive for respect instead of attention. It lasts longer.
Trusted Contributor
Posts: 1,645
Registered: ‎03-14-2010

Re: Proud owner of new 3.25% mortgage

[ Edited ]

@IamMrsG, thank you & Merry Christmas to you & yours as well! As I told the notary that was present when I signed the paperwork yesterday, I actually have the money to pay the mortgage off in full, should I choose to do so but I would lose any tax benefits that having a mortgage gives me. I'd rather leave the money in my investments & have it earn more money for me.

Respected Contributor
Posts: 3,513
Registered: ‎10-27-2010

Re: Proud owner of new 3.25% mortgage

You are more than gracious. If only I had taken time to think and be clear.... I am so sorry. It sounds as if you git a great rate--and getting a loan these days isn't easy. Congratulations! 

Respected Contributor
Posts: 2,139
Registered: ‎04-30-2013

Re: Proud owner of new 3.25% mortgage


@sgraham30 wrote:

@libbyannE, I just checked an online mortgage calculator. For a 15 year loan, the monthly payment before escrow charges are added is $714, for a 30 year loan the monthly payment before escrow charges are added is $442. The difference between a 15 year & 30 year mortgage is $272 per month, which to me, is not a "little more each month." I've been sending an extra $152.63 per month towards principal. Starting 02/2017, I'll be sending an extra $200 per month to be put towards principal.

 

 


Yes @sgraham30 @libbyannE   the difference in a 15 year and 30 year loan in monthly payments can vary drastically depending upon the loan.   A 15 year loan rate is usually lower than a 30 year loan rate.

 

You can also write off you interest on you personal taxes as well for a real estate loan.