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Replies (13)
- EvanWeiss
- Contributions:1
usually not - the payoff is the principal balance you owe - plus interest per terms of note - normally, there are discounts for early payoffs - sorry!
- Rob Robertson, "Mortgage Broker"
- Contributions:169
No, you will not receive a discount from the lender/servicer of your mortgage loan. However, you will save by not having to pay any further interest that your are currently being charged.
- mme2000
- Contributions:36
The only discount you get is paying less interest. Be careful that you do not have a pre-payment penalty in place otherwise paying off too much too soon could cost you more money than what you owe.
- Noemi Rodriguez, "For sale by Agent"
- Contributions:71
No.....you will not get a discount, banks will always win one way or another either by a prepayment penalty or by interest.
I hope that you can pay it off early and not have a mortgage payment. Good Luck
I hope that you can pay it off early and not have a mortgage payment. Good Luck
- formerLO
- Contributions:2
If you have the ability to payoff your entire mortgage balance, I would recommend that you do a couple of things before you actually write the check. First I would read Missed Fortune 101 or The New Rules Of Money. Both of these books tackle some of the most common misconceptions people have about about paying off their home, and recommend some options that *MAY* make more sense depending on your situation.
Secondly, I would recommend speaking with a couple of highly qualified financial planners to see if that is the best option for you long term. There are many reasons that paying off your mortgage can actually be detrimental to your long term financial success, for reasons that are too detailed to explain here but it all depends on your situation.
If you would like to know more just let me know!
Secondly, I would recommend speaking with a couple of highly qualified financial planners to see if that is the best option for you long term. There are many reasons that paying off your mortgage can actually be detrimental to your long term financial success, for reasons that are too detailed to explain here but it all depends on your situation.
If you would like to know more just let me know!
- dennis homsey, "Dennis Homsey"
- Contributions:87
I have talked private investors into accepting less. Banks, lenders, large institutions... forget about it.
- Andrew Adams, "203K Specialist"
- Contributions:9342
The MMA is only complicated because if they ever showed how simple it really is they couldn't charge $3,500 for it.
Don't get sucked into that scam!
- CORONA NICK
- Contributions:2218
Yea, scam scam scam...lol Pay that sukker off, its a sure way to save thousands on interest....I bet you can use the money you save on interest, and tax deductions, not a reason to have to pay interest....
- David Young, "Vintage Park"
- Contributions:70
Again, I must say that Nick is right. Pay it off, friend, don't overleverage yourself, and surely don't pay $3500 for some money merge scheme that only costs $100 if you go here. The MMA guys (not the fighters) will tell you it's "complicated algorithms"....well, true, so complicated that they don't even know the amortization methods.
- Lewis Poretz, "Open Mortgage"
- Contributions:56
I will teach you how to pay your house down for free...... $3500 for software is one thing - the relentless nature these guys pitch and pitch their product with is another.....
most of the people i know who sell this product used to sell the 1% pay option arm until that product bit the dust..... proceed with caution!!!
- Peter Tiemann, "ptiemann"
- Contributions:695
pub123, why do you think the bank would give you a discount if you pay early?
I don't think a lender is happy when you pay early. As a lender, you want to get the money paid on time over the agreed term, and earn the agreed interest. If you pay off now, the lender does not earn interest.
Even worse, the lender has to find another qualified borrower whom he can loan the money to.
You are NOT doing them a favor. Possibly you are doing yourself a favor.
Check if you could put (some of) that money in an investment that earns more interest than your mortgage costs.
-Peter
You may also want to call the bank that owns/services your loan to see if there is any penalty for paying it off early with a prepay or also maybe checing into if they will allow you to pay up to 20% of the P & I without triggering a fee so that you can pay down the principal and possibly pay off your other debts (if you have any) that currently have higher rates.
Your monthly mortgage payments are based on paying 1 month ahead on principal, and 1 month in arrears in interest. Thus, you will pay the remaining principal plus any accrued interest since the last payment on that oh-so-happy day you make the "payoff."
Before you do, however, I'd talk to a financial consultant. Have him or her work out some realistic scenarios to see how you can have your money work for you, work in tax deductions both with and without a mortgage, and see if you will or won't come out ahead with the investments and pay off the loan later - and how long it will take.
pay off early
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