| Lump sum to lower payments |
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MHP
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| Lump sum to lower payments |
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As I posted in the personal finance section. Our family is having trouble paying the monthly mortgage statements. And we are attempting to payoff the mortgage with my fathers retirement money. We owe around $60,000 on the mortgage. I had the thought that maybe we can pay $20,000-$40,000. If we do this, could we lower the monthly payments?
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Sun Nov 22, 2009 7:26 am |
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oldguy
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Why not draw from that $20,000 to $40,000 to make the current payments? That seems far better than prepaying the loan - if you do that the money will be gone.
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Sun Nov 22, 2009 4:18 pm |
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coaster
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Prepayments on principal won't reduce your monthly payments. Only refinancing can accomplish that. Refinancing with a lower interest rate, a longer term, or reduced principal. A lower interest rate is the preferred choice, if you can get a rate low enough to free up as much extra cash flow as you need. If you've already got the lowest rate you can get, I also like oldguy's recommendation. That money can be earning interest at the same time it's paying your mortgage payments.
~Tim~
Eye Candy : Why Whimsy
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Sun Nov 22, 2009 6:35 pm |
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MHP
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My hope is that we can get the lender to recast the mortgage after we significantly lower the amount left on the loan. I'm not sure how open lenders are to this. But being that we are in a very difficult situation, and in serious danger of going into default. This might be best for both the bank and us.
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Mon Nov 23, 2009 7:23 am |
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littleroc02us
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Since you have the money, take half of it and pay off part of your mortgage, then take what's left put it in a money market fund that has check writing capabilities and use it to pay off the mortgage monthly.
“If you want to stay in debt forever, keep borrowing money.”
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Mon Nov 23, 2009 9:06 pm |
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watkimf
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| hold on to cash right now...... |
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I would take the money from the retirement and put in into debit card small banks where currently interest rates are 4.5% depending on where you live. The only thing is you have to make 10 small debit transactions a month....that's a few packs of gum.
Then I would wait until you have the next 20k saved up so you can then just pay off the 2nd mortgage. I wouldn't waste time trying to put money towards it since others have said basically the same thing which is it won't lessen your payment.
To sum up, put money in high interest account, use some to pay monthly payments, and when you have the entire amount, 60k, saved up then just pay off the balance.
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Mon Dec 21, 2009 5:08 pm |
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