I forgot to mention that my first refinance was made free. I literally transferred the balance from my original mortgage to the new one without paying a single penny on fees. I only had to take an increase on my interest rates that was offered at that time from 5% to 5.375%. But I was already paying 6%. So I lowered my monthly payment from 1190 to 1090, but I kept making the same $1190 I was making when at 6%. The second refinance plan will pay itself off in ount that I paid on fees, I would have paid them on interest if I had kept my original 30 yr mortgage at 5.375%. I believe that if you can take a drop of 1% on your interest rates for a refinance plan, you consider refinancing your mortgage. Of course every case is different and every situation needs to be analyzed carefully before making these decisions. It is not very easy to go from 1200 to 1450 on the monthly payment, but it’s worth the effort in the long run. I just wished I had started with this mentality the first time I purchased my home. My balance would’ve been much lower now. Thanks for replying to my post.
I also earn cash rewards from my Chase CC and get a check at the end of the year, not to mention paying the LOC and CC off every month and my credit score is 805
My husband passed away a couple months ago. He told me whatever I do he wants me to pay the mortgage off. So, I did a couple days ago and I will tell you what it feels great! I dont plan on moving anytime soon but it will be nice not having to pay 1500. a month to make someone else richer!
I really enjoyed reading all this helpful information about mortgage payments. I only wish that I had this all before I bought my house 13 years ago. I will be using alot of these mortgage tactics. May God continue to Bless you.
From my experience I can say, there are financial calculators which show you in detail how to payoff mortgage early. The calculator which I use is ” Smart Loan Calculator reference Pro ” which is available in app store for 2 bucks. It is awsome. It is not for one time. It is life time useful smart calculator. Give it a try. After checking this, I realized how easy to payoff martgage early.
I pay off my CC bill before I’m charged interest with a Line of Credit(not HELOC) every month
We are in the process of trying to refinance our FHA mortgage to 3.25%. I DO NOT plan on paying extra payments on my mortgage if I can get a rate that low. That will make our payment about $300 less per month and the payments would be much cheaper than what it would cost to rent this house.
Also, if we start to experience high rates of inflation (most likely we will), it will be easier to pay the house off.
Good suggestions. I have a $264,000 mortgage at 3.95%. I will have our house paid for in 7 years. How? I take my entire net paycheck $5000 a month and apply it to my mortgage every other month. I use my CC for all other monthly bills and living (Roughly $2000/ month). I then pay off the LOC before I’m charged interest on the odd months that I’m not applying my paycheck to my mortgage(roughly $3300 a month- $2000(CC bill)+ mortgage payment). I them just repeat the cycle, never paying interest to the LOC or CC. This is, by far, the best and fastest way to pay off the mortgage without adjusting your lifestyle or living off Raimen noodles to do it. I have no idea why more people aren’t doing this. It’s shifting your own money to work for you instead of against you. I hope this helps someone
