i'm actually a fan of leverage...if you can lock in long term fixed debt right now, i don't understand paying cash from an investment perspective--put emotions and ideas of your comfort zone away and just look at the math...by paying off a mortgage early, you're effectively earning the interest rate of that mortgage on your cash...so around 6%...if you're a half decent investor, you should be able to better than that, and stay leveraged.....and btw, that was a terrible post...your profile says you're a student..maybe it's bc i don't trust a lot of people, but what's your angle??
How long does it REALLY take to pay off your 6% 30 years mortgage if you have already 5 years in?
Let's see, 30 - 5 = 25. Now it could be shorter if you make extra principal payments, or longer if you refinance with another 30 year mortgage. And the interest rate has nothing to do with it.
How long does it REALLY take to pay off your 6% 30 years mortgage if you have already 5 years in?
Let's see, 30 - 5 = 25.
Mitch -
You lost me at the end. Can you explain how you got from 30 - 5 all the way to 25 in a single step? Some of us need to see the intermediate steps to really understand how the math works.
And what if the interest rate were 8%. Is there a formula for that one as well, or it that answer unknowable?
How long does it really take? It takes 30 years to pay off your 30 year mortgage, whether you are 5 years in or 29 years in. That is if you make only the minimum payment due, if it is a full PI payment. If you want to find out how many payments you have left, then subtract how many years in you are from how long the loan was at the beginning.
You lost me at the end. Can you explain how you got from 30 - 5 all the way to 25 in a single step? Some of us need to see the intermediate steps to really understand how the math works.
And what if the interest rate were 8%. Is there a formula for that one as well, or it that answer unknowable?
Sorry J, that's just me and my physics degree talking. I'll put it another way... if you have 30 piggies and I take 5 piggies away... :wink:
And my actuary tables are useless in this regard. It says a 30-year loan at 8% takes just as long to pay off as a 30-year loan at 6%, which we all know is impossible because the interest rate is higher!
Ok, ok, let's hope Mr. Lam returns and explains himself before this thread gets way out of hand and closed.
I love the Mayan calendar reference. Hilarious. Do most of you guys do 15-year mortgages on properties that have very good cash flow? I know the benefits of a 15-year mortgage, but do you prefer having the flexibility of the lower payment that the 30-year offers?
did BP just shut down for a minute? i just posted and it didn't work?? anyyays, i'm thinking we didn't answer your question....my advice is to get a financial calculator..you can find one online for free for now, or download an app if you have a smartphone for free as well...then yhou can input different scenarios to see how long it will take to pay off your mortgage if you do this, or that...that help any or are we still misfiring??
Yeah, it was Tango-Uniform for a few minutes earlier this evening. Usually happens when I'm about to post something brilliant, which fortunately isn't too often. :mrgreen:
Thank everyone, I was just wanting to get everyone involved here. The answer is it really only takes 5 minute. You just write a big check enough to pay off a 30 years mortgage. Call your lender, ask for the balance, and write a big check to pay off. yes, it's 30 year mortgage, but does it really needs 30 years, probably not. Just like others who did seller financing. They walk the mortgage to a better house and the house they have will be free and clear.
Thank everyone, I was just wanting to get everyone involved here. The answer is it really only takes 5 minute. You just write a big check enough to pay off a 30 years mortgage. Call your lender, ask for the balance, and write a big check to pay off. yes, it's 30 year mortgage, but does it really needs 30 years, probably not. Just like others who did seller financing. They walk the mortgage to a better house and the house they have will be free and clear.
Just a thought!!!
I am confused. If you are going to write a big check, why even get a 30 years mortgage, why not just buy cash and you have no 30 years mortgage?
i'm actually a fan of leverage...if you can lock in long term fixed debt right now, i don't understand paying cash from an investment perspective--put emotions and ideas of your comfort zone away and just look at the math...by paying off a mortgage early, you're effectively earning the interest rate of that mortgage on your cash...so around 6%...if you're a half decent investor, you should be able to better than that, and stay leveraged.....and btw, that was a terrible post...your profile says you're a student..maybe it's bc i don't trust a lot of people, but what's your angle??
well thanks for your informative post...i guess nobody's ever thought of paying off a mortgage early around here :) look forward to more of your "strategies"
I agree with BryanA about not paying off your mortgage early. Leverage is one of the most important things that makes real estate investing a great choice.
I am still not sure what were you hoping to get out of your question.
I suspect that if you talked to a mortgage agent you would find that it rare at least in recent years for much of anyone to hold their note 30 years. Many people refinance and start the 30 year clock rolling again.