That was fun :(
Just wrote 6 mortgage payments and on the way to the bank to pay the house through August of next year. I only make money for a short period each year and pay ahead all of my bills so that they can't be missed over the winter.
Anyone else do this?
Anyone else do this?
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What Hobby guy said. The interest won't be a lot, but more than you are getting now (except you may be saving some interest on the mortgage). 0 -
Mainly I do it just for ease and peace of mind.
I know the house is paid till then. No computer error can make me pay a late payment. With the tiny interest available for the short time on a small amount of money it isnt worth it to me. For several grand you will not get a high interest rate in any short term savings plan.
I have done the math on both scenarios (not including a savings account) and it is basically the same. I am not saving on mortgage interest to be worthwile.
But when I can I pay principal, that what helps.0 -
I wish everybody in the USA had to pay their taxes in one lump, in April, sorta like you and your house payments...less would be so ready to add "just a little bit more" tax for whatever pet project/cause they have in mind, and the citizens would get a real education on just how much they are really paying already. 0 -
RUGERGUNZ - ing has a 4.3% savings account... ingdirect.com 0 -
Not all mortgage companies accept early payments. Some apply it to the principle. You are fortunate your mortgage co. does this. If they post the early payments in the month you pay, toward the month you owe, then you are saving the future interest cost. You won't see the saving until you pay off the loan, but you are in fact probably saving more by making early payments than a savings account would pay. This of course only applies to the mortgage or other loans. Other bills paid early cost you. If peace of mind has a cost...that's it. Peace of mind does have a value for sure. 0 -
It might make sense..Depends on how much loan interest he will pay versus how much savings interest he loses during the same time. Best I can see usually..Interest owed far exceeds interest made on puny little savings accounts..But I ain't no financial wizard.. 0 -
quote:Originally posted by iwannausername
RUGERGUNZ - ing has a 4.3% savings account... ingdirect.com
And dont forget that you must pay taxes on the interest a Savings account draws.0 -
quote:Originally posted by iwannausername
RUGERGUNZ - ing has a 4.3% savings account... ingdirect.com
I use ING and it works great and pays excellent rates...0 -
I will never...EVER set up an account where money is automatically taken out of MY account. I have known of a few people who have had problems.....
People continuing to take money out after they should have stopped...
The wrong amount being taken out....
I have also heard of someone having an account where an automatic payment was set up.....and the account was closed by the person who had the account....then the company put in for the automatic payment and it automatically OPENED the account again.
Never ever give anyone control of your money. You are smart to pay ahead. You should check to see if the payments you make ahead of time are taken off of the BACK of your loan. If you check into it....making payments on your home ahead of time if done right will cut the interest off of the back of your loan and add to MORE of your money going to the loan and not interest.0
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