 extra mrtg payments? (by Laker Lori [CA]) Aug 16, 2018 11:24 AM
 extra mrtg payments? (by Jim in OC [CA]) Aug 16, 2018 11:35 AM
extra mrtg payments? (by Robert J [CA]) Aug 16, 2018 11:56 AM
extra mrtg payments? (by Landlord ofthe Flies [TX]) Aug 16, 2018 11:58 AM
extra mrtg payments? (by myob [GA]) Aug 16, 2018 12:36 PM
extra mrtg payments? (by Ken [NY]) Aug 16, 2018 12:40 PM
extra mrtg payments? (by TA [CA]) Aug 16, 2018 12:45 PM
extra mrtg payments? (by Deanna [TX]) Aug 16, 2018 1:10 PM
extra mrtg payments? (by Pmh [TX]) Aug 16, 2018 2:26 PM
extra mrtg payments? (by LindaJ [NY]) Aug 16, 2018 3:29 PM
extra mrtg payments? (by fred [CA]) Aug 16, 2018 5:16 PM
extra mrtg payments? (by Dan [NY]) Aug 16, 2018 7:10 PM
extra mrtg payments? (by pmh [TX]) Aug 17, 2018 1:58 PM
extra mrtg payments? (by don [PA]) Aug 17, 2018 7:49 PM
extra mrtg payments? (by WL [CA]) Aug 21, 2018 9:36 AM
extra mrtg payments? (by cjo'h [CT]) Aug 21, 2018 8:56 PM
extra mrtg payments? (by cjo'h [CT]) Aug 21, 2018 8:58 PM
extra mrtg payments? (by Chris [CT]) Aug 22, 2018 2:30 PM
extra mrtg payments? (by cjo'h [CT]) Aug 23, 2018 2:28 PM
extra mrtg payments? (by Laker Lori [CA]) Posted on: Aug 16, 2018 11:24 AM
Message:
Does anyone have any good points as to when we should make extra payments to one of our rental mrtgs? Shouldn't it be the smallest mrtg 1st? I'm indecisive on this topic & stuck in analysis paralysis. {I wouldn't do my primary- the shortest mrtg- as I hope to buy my water front home with a boat dock within the next 5 yrs!!}
--68.109.xx.xxx |
extra mrtg payments? (by Jim in OC [CA]) Posted on: Aug 16, 2018 11:35 AM
Message:
The highest interest would be First. --174.213.x.xxx |
extra mrtg payments? (by Robert J [CA]) Posted on: Aug 16, 2018 11:56 AM
Message:
I did an analysis years back. What minimum amount could I add to a 30 year mortgage and significantly reduce the length of the loan by years. And the magic minimum amount would cut a 30 year loan down to 22 years. I would run a mortgage calculator and pug in number to see what the result would be.
So any property that I purchased with a loan, I'd get a 30 year loan, instead of a 15 year, so I'd have extra money to fix up the place, make improvement and up the rents. Then with the extra cash flow, I'd increase my monthly principal payments to shorten the loan.
Then 5 or 10 years up the road, when rents again jumped, I'd re evaluate my surplus income from the property and make an adjustment to my monthly extra premium payments.
I most cases I paid things off when mortgage rate were high, like 7 to 11%. But at today's rate, I'll take the tax write-off and let the loan ride. --47.156.xx.xx |
extra mrtg payments? (by Landlord ofthe Flies [TX]) Posted on: Aug 16, 2018 11:58 AM
Message:
I like lowest mortgage first. Yes, math agrees with highest interest, but it also agrees with eliminating a payment earlier and using that allocated payment to make extra payments.
--108.69.xxx.xxx |
extra mrtg payments? (by myob [GA]) Posted on: Aug 16, 2018 12:36 PM
Message:
i LINE UP 5 TO PAY OFF. if rent is 850.00 on each but the mortgages are different-- then you figure who gives the most for pay off.
1st property has 100K note - brings in 850.00
2nd and 3rd property pay off is 110K but i make 1700.00 ($850X's2) paying off the 2 gives me 2 paid assets-- and probable a lot easier to get rid of in an emergency cash crunch. Years ago I used interest but most of the notes were equal so didn't really matter. --99.103.xxx.xxx |
extra mrtg payments? (by Ken [NY]) Posted on: Aug 16, 2018 12:40 PM
Message:
I would always pay off my primary residence first in that scenario,if your world collapses and your home is paid off as least you have somewhere to go to call home. --72.231.xxx.xxx |
extra mrtg payments? (by TA [CA]) Posted on: Aug 16, 2018 12:45 PM
Message:
Make sure you are making an extra payment applied to principal if you want to reduce the total interest paid and pay off the mortgage sooner. Some mortgage companies will apply your extra payment to next months payment(and then your next months to the one after that and so on). Also consider what alternatives you have for the money besides paying down the mortgage. --75.149.xx.x |
extra mrtg payments? (by Deanna [TX]) Posted on: Aug 16, 2018 1:10 PM
Message:
If you're the kind of person who needs the kind of feedback that prompt rewards give you, then pay off the smallest first, because it's the fastest way to see progress as it affects your bank account.
If you're the kind of person who has a good eye for the big picture and are patient, then pay off the highest interest first, because it makes the most math sense.
What's your motivation for paying off early? If you want to get away from the obligations that debt puts you under, then pay off your primary residence first.
If your business is running a bit close to the edge of your budget, and you want more breathing room without the obligation of paying back so much debt, then focus on paying off an investment so that it's free-and-clear.
But if your business is expanding, and you're comfortable with your debt levels, then pay the minimum, and focus on getting the remainder of your budget to work harder for you so that you have more income-- but not overextend yourself and your financial obligations. --96.46.xxx.xx |
extra mrtg payments? (by Pmh [TX]) Posted on: Aug 16, 2018 2:26 PM
Message:
Pay off smallest first. unless significant extra principal payments on highest rate mortgages it won’t make much difference for a long time. many sites where you can input different scenarios. All my rentals are 30 fixed but I make payments on 15 years schedules. I bought when 30 rates were very low so not cost effective to refi to 15 year notes. --104.218.xxx.xxx |
extra mrtg payments? (by LindaJ [NY]) Posted on: Aug 16, 2018 3:29 PM
Message:
I would pay off my personal residence first. Like Ken said, you then have a paid off home to come back to. --108.44.xx.xxx |
extra mrtg payments? (by fred [CA]) Posted on: Aug 16, 2018 5:16 PM
Message:
Depends on your loans and your age.
Old loan or new loan - add extra payment toward the principal of the new loan.
Example: one loan is into the last 10 years, the other loan is into the 2nd year - accelerate the new loan.
High interest loan or low interest loan - pay off the high interest loan faster.
Interesting facts:
1. In a 30 yr loan, you pay mostly interest for the first 15-18 years. That's the best time to add more to principal.
2. If you have a 6% loan and money in a savings account that pays 1.5%, use the money in your savings to pay down the principal. However, keep some savings for emergencies.
3. In a conventional 30 yr loan, if you just pay the regular payment every month, by the time your loan is paid off, you paid the original price of the home x3.
It's written in your loan docs, check it out.
--99.59.x.xxx |
extra mrtg payments? (by Dan [NY]) Posted on: Aug 16, 2018 7:10 PM
Message:
If you are looking to save the most amount of j retest review your amortization schedule. Most interest expense occurs at the beginning of the note. As such, principal payments have the largest impact. So yes, highest interest rate of the note. However, paying towards the end of the note only pays principal back faster. Prepay at the beginning of the note and save the j interest cost and build equity. --68.192.xxx.xxx |
extra mrtg payments? (by pmh [TX]) Posted on: Aug 17, 2018 1:58 PM
Message:
in US extra principal payments mean that you pay off loan sooner & hence reduce interest expense by then. compare that with other countries eg Australia where the am schedule is recalculated on the reduced principal caused by extra principal payment. So again I would suggest pay down smallest first bc unless very significant payments early on on higher rate loan the difference is negligible - run schedules as suggested showing the effects of different extra payments on each loan then decide what you want/can do. --104.218.xxx.xxx |
extra mrtg payments? (by don [PA]) Posted on: Aug 17, 2018 7:49 PM
Message:
As far as total benefit, you can not do better than paying down the highest interest rate first. Landlord of Flies, he will come out ahead paying down the highest interest rather than paying off a smaller loan with a lower interest rate and then putting the extra cash flow towards the other loan.
Now, if the goal is not what is the best overall but rather to quickly increase cash flow, then yes, pay off a smaller loan even if it has a lower interest rate. --73.141.xxx.xxx |
extra mrtg payments? (by WL [CA]) Posted on: Aug 21, 2018 9:36 AM
Message:
In non-recourse states like California, do not pay off the primary residence first. Reason - the bank cannot go after you on a home loan but can go after you for the balance on investment / apartment loans. So the safest move is to pay down recourse debt to lower your liability if the RE market crashes and you default. --201.140.xxx.xx |
extra mrtg payments? (by cjo'h [CT]) Posted on: Aug 21, 2018 8:56 PM
Message:
Lori,where are you getting this extra money,in your situation I'd stash it in the bank,you say you're going to buy a property with a boat dock,which means a boat,which means a hole in the water,which means a hole to pour more money into,which you don't have,unless you put it in the bank,or under the water bed...........charlie....................... --32.214.xxx.xx |
extra mrtg payments? (by cjo'h [CT]) Posted on: Aug 21, 2018 8:58 PM
Message:
Lori,where are you getting this extra money,in your situation I'd stash it in the bank,you say you're going to buy a property with a boat dock,which means a boat,which means a hole in the water,which means a hole to pour more money into,which you don't have,unless you put it in the bank,or under the water bed...........charlie....................... --32.214.xxx.xx |
extra mrtg payments? (by Chris [CT]) Posted on: Aug 22, 2018 2:30 PM
Message:
I only pay a little extra, my notes are on track to be paid off when I turn 50. That's good enough in my book, I have no desire to stop working and I'll get a significant income boost when that happens.
I'm 33 next week BTW. --24.45.xxx.xxx |
extra mrtg payments? (by cjo'h [CT]) Posted on: Aug 23, 2018 2:28 PM
Message:
Happy Birthday Chris.Youre only a baby...............charlie......I don't want to do anything,even read a ruler............. --32.214.xxx.xx |
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