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#1
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Early Mortgage Payment
I'm self-employed and I get irregular paid - so some month much more then
others. So I would like to pay in good month more money towards my mortgage (so like make now a payment for Novemberthrough Febuary). Can I do so and specially the question: do I save a bit in interest by that? About my loan: I have a normal FHA Loan (7.5 %) Thanks, Pete |
#2
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On Tue, 19 Oct 2004 17:27:26 GMT, someone wrote:
So I would like to pay in good month more money towards my mortgage (so like make now a payment for Novemberthrough Febuary). You can't just send in one check, it would merely get credited as extra paid this month, and they would still expect the future months payment. A normal mortgage is DIFFERENT FROM AN "INSTALLMENT LOAN" like a car loan or many student loans. What with contracted out payment processing, I am not optimistic about this getting done right even if you call them first. I suggest writing all the checks now while you have the money and subtracting them from your check register, put each coupon & check in a separate envelope, and put them aside, mail 'em out later one by one. Or at least send separate checks with the separate coupons even if you put 'em all in the same envelope, so that they can see what you are doing! -v. |
#3
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"N" wrote...
If it makes more sense to pay monthly, then you could set up a bank account with enough money to pay for each monthly payment for November through February, and then arrange for the mortgage company to get paid from that account automatically every month. I've never done the above, I just figure it would work. It will work just fine, as long as you remember to replenish the account. A free checking account at a credit union that doesn't charge for automatic debits would be ideal. You don't even need a dedicated account, unless you want it to help enforce financial discipline... Another thought: Some people arrange to pay every 2 weeks, rather than once a month. The advantage of this is that your checks are smaller (which might help you in your situation) and that every year you'll make 26 payments, instead of 12, and that means that every year you'll pay more, thus paying off your mortgage faster. That also has to be "approved" by the mortgage company, so you ensure the payments are credited properly... |
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