Posted on: 08th Apr, 2009 08:32 am
I would like to pay off a good portion of our mortage.
I will have approx. 80,000.00 to work with.
Currently owe 96,000.00
Is it better to put all down at once, or make additional payment monthly?
Not sure best way
I will have approx. 80,000.00 to work with.
Currently owe 96,000.00
Is it better to put all down at once, or make additional payment monthly?
Not sure best way
there's no real "best way" other than what fits your budget and your needs the best. obviously paying the entire $80K down will get you paid off that much quicker. is there a better way for you to invest that money, though? if so, you may want to do that. your rate on the existing mortgage will have a bearing on what kind of return you'd need to get if you invested elsewhere, of course.
If it were me, I would talk with your existing lender and offer to pay it down the full $80K and ask for a sweet deal on your interest rate for the small balance. That way you get 2 benefits, a lower principle and rate so your payment should be very small. One thing I would also say is to not use all your $80K if that leaves you little cushion for emergencies, job loss etc. Good luck.
Hi ddutridge,
Paying off a lump sum amount is a good option. This will help you in paying off the mortgage quickly. However, if you plan to pay off the mortgage in full, you should be beware of the pre-penalty clause. Lenders include a pre-penalty clause in the mortgage docs. If you pay off the mortgage in full before a certain period of time, you may be penalized for it.
Thanks
Paying off a lump sum amount is a good option. This will help you in paying off the mortgage quickly. However, if you plan to pay off the mortgage in full, you should be beware of the pre-penalty clause. Lenders include a pre-penalty clause in the mortgage docs. If you pay off the mortgage in full before a certain period of time, you may be penalized for it.
Thanks
Thank you for the suggestions