Posted on: 12th Jan, 2011 12:11 pm
Hi, my name is Kakhi, I'm new to this forum and look forward to participating.
My question is this: My husband and I purchased land about 5 months ago with a simple interest baloon mortgage that will become fully due in 3 years. How do we maximize our payments (i.e. bi-weekly payment, weekly payments, monthly payments with additional funds added each payment). It is our intentions to payoff the mortgage prior to the 3 years by selling gold and/or silver that we purchased a few years ago. Only problem is that we withdrew our precious metals from an IRA and deposited them in a local bank (more readily assessible if something happens) and we will have to pay the taxes on them for 2009 (when we withdrew them from the IRA). So we want to pay the balance down as much as possible on the land loan without tapping too much into our precious metals.
My question is this: My husband and I purchased land about 5 months ago with a simple interest baloon mortgage that will become fully due in 3 years. How do we maximize our payments (i.e. bi-weekly payment, weekly payments, monthly payments with additional funds added each payment). It is our intentions to payoff the mortgage prior to the 3 years by selling gold and/or silver that we purchased a few years ago. Only problem is that we withdrew our precious metals from an IRA and deposited them in a local bank (more readily assessible if something happens) and we will have to pay the taxes on them for 2009 (when we withdrew them from the IRA). So we want to pay the balance down as much as possible on the land loan without tapping too much into our precious metals.
The balloon is in three years, so, that is not a lot of time and making weekly payments does little or no good and probably makes life difficult for the lender to process---they might not even accept weekly payments.
Anyway, anything other than extra with the monthly payments does not make much sense.
If you want to know what monthly payment should be to pay off in remaining term, we need to know current balance and the interest rate.
Maybe you are just looking to pay something extra so balloon is just smaller other than paid in full by the time balloon time arrives.
Anyway, anything other than extra with the monthly payments does not make much sense.
If you want to know what monthly payment should be to pay off in remaining term, we need to know current balance and the interest rate.
Maybe you are just looking to pay something extra so balloon is just smaller other than paid in full by the time balloon time arrives.
Thank you John for your your response, I guess we'll just have to increase our payments and have a smaller balloon payment at the end of term.
Another question please: do land loans have to be paid off before a lender will give you a loan to build??
Another question please: do land loans have to be paid off before a lender will give you a loan to build??
When you get a construction loan, the loan is disbursed over time as work is completed.
If you already own the land and there is a loan on it, the first disbursment from the lender is to pay off that loan and then the rest of the construction loan is disbursed over time as various phases of the construction are completed.
If you already own the land and there is a loan on it, the first disbursment from the lender is to pay off that loan and then the rest of the construction loan is disbursed over time as various phases of the construction are completed.