Posted on: 02nd Feb, 2011 04:14 am
A fast mortgage payment plan that ignores any of those three key components above is an Amateur’s Plan. Unfortunately, most mortgage pay off plans do not include such considerations. At the time of approvals and funding, Consumers become overwhelmed with the mortgage process. Even professionals, like dentists and doctors, teachers, nurses and police, even accountants and financial planners can be so intimidated with the experience that they accept the Lenders' Payment Plan without question. That payment plan usually has a built-in, profit pool to be counted in the hundreds of thousands of dollars over the life of the mortgage. The new breed of Mortgage Payment Specialists knows how to design a Consumer friendly, Mortgage Payment Plan that integrates tax issues, compounding frequency and investments. All three components, when skilfully integrated into a mortgage payment plan, deliver savings counted in the hundreds of thousands of dollars over the life of the mortgage.
Baliajay, it would be far more beneficial (far, far more) if you'd described a "payment plan" that would benefit people instead of launching into a diatribe against lenders and "their payment plan." Most lenders are openly advising borrowers to prepay in one form or another. It was lenders who devised the biweekly plan, which allows for a substantial saving for borrowers.
That many different walks of life are affected by a lack of understanding of mortgage loans and how they work, and how best to save by prepaying is more a testimony to the poor way in which our educational system fails to prepare people for life experiences such as borrowing money.
Please provide a constructive method by which you could inform people how to save money when paying back their mortgage loans.
That many different walks of life are affected by a lack of understanding of mortgage loans and how they work, and how best to save by prepaying is more a testimony to the poor way in which our educational system fails to prepare people for life experiences such as borrowing money.
Please provide a constructive method by which you could inform people how to save money when paying back their mortgage loans.
Recasting of your existing mortgage is not commonly know, the idea behind recasting your mortgage is to reduce the principal and at the same time reduce your mortgage payment. Below is an example:
Example: A person with a 30-year $300,000 fixed-rate mortgage and an interest rate of 4.75% who recasted one year into the loan by putting in $60,000 toward the principal would trim his balance to $235,371. Assuming there were 29 years left on the loan that would result in a monthly payment of $1,247 instead of the original $1,565.
This may not be a suitable solution for every home owner, but then again nothing really is when it comes to personal finances.
Example: A person with a 30-year $300,000 fixed-rate mortgage and an interest rate of 4.75% who recasted one year into the loan by putting in $60,000 toward the principal would trim his balance to $235,371. Assuming there were 29 years left on the loan that would result in a monthly payment of $1,247 instead of the original $1,565.
This may not be a suitable solution for every home owner, but then again nothing really is when it comes to personal finances.
