Tagged Questions
5
votes
5answers
298 views
why do banks want you to pay off interest before principal?
When you take out a traditional mortgage the first payments you make to a bank pay off mostly interest and then later payments start paying off principal. What is the reason for this? Is it just a ...
2
votes
3answers
159 views
Quick formula for calculating total interest in my head
Is there a rough, quick and dirty, formula that I can do in my head for calculating the total interest on a loan? Something like:
TotalInterest = Principal * (Yearly Interest% * Term In Years / 2);
...
2
votes
2answers
89 views
Mortgage and/or unit trust
I will be purchasing a property soon, so my question is the following:
Do I pay off my mortgage off as soon as possible (by paying more every month) or do I put the same amount extra into some unit ...
8
votes
2answers
194 views
Why is mortgage interest deductible in the USA for a house you live in?
In Australia, if you have a mortgage on the house you live in the interest and other expenses are not tax deductible, unless you rent out one or some of the rooms or run a business from your home, in ...
6
votes
3answers
339 views
How to pay more principal on home loan?
This is how I pay off my current loan for my condo.
Principal and interest - $1,867.27
Escrow payment - $776.63
Total monthly payment - $2,643.90
When I go and look at the transaction detail. This ...
8
votes
3answers
1k views
First time home hunters. Pay debt or save for down payment
tl;dr
We want to buy a house.
We've done all the pro's and con's of home ownership.
We have 1/2 a down payment and some highish loan payments
Would it be wiser to pay down the loans and go ...
17
votes
9answers
1k views
Paying Off Principal of Home vs. Investing In Mutual Fund
I close on my first home October 21. I've locked in a 4.330% APR on a 30-year fixed conventional mortgage and my payment will be ~$800/month. I've put the required 20% down to avoid paying PMI.
...
3
votes
2answers
281 views
Should I pay the interest or the principal on my second mortgage?
We have a second mortgage on our home from 10/08. It was designed to be deferred for five years, so we're right in the middle. After the deferral, our monthly payment will be $413.74 for 25 years. ...
7
votes
2answers
413 views
How to determine new, lower interest payments after a lump sum mortgage payment, i.e. new amortization schedule?
Here's a financial math problem:
I have a mortgage at about $78,0000 with 5.5% interest and 56 of 360 monthly payments were made. I'm currently paying about $360/month in interest charges. If I pay ...
