Comments on: Is Paying Off a Mortgage Early Smart? http://wealthpilgrim.com/should-you-pay-off-your-home-mortgage/ WealthPilgrim.com -No Money Worries. No Matter What. Wed, 23 May 2012 12:06:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: richlor http://wealthpilgrim.com/should-you-pay-off-your-home-mortgage/#comment-18 richlor Fri, 06 Feb 2009 14:36:54 +0000 http://www.wealthresourcesgroup.com/neal-talk/?p=104#comment-18 I recently refied - i had a 6.25% loan and dropped to 4.75...My main concern was my monthly payment. I am paying $500 a month less. That monthly payment was and is a concern. I believe my house will appreciate and I hope to stay at least 5 years if not much more. Now I have a tenable payment that will not put me in the poor house...I hope! My "payback" on the loan is about a year but am not so much concerned with that as reducing monthly payments. I recently refied – i had a 6.25% loan and dropped to 4.75…My main concern was my monthly payment. I am paying $500 a month less. That monthly payment was and is a concern. I believe my house will appreciate and I hope to stay at least 5 years if not much more. Now I have a tenable payment that will not put me in the poor house…I hope! My “payback” on the loan is about a year but am not so much concerned with that as reducing monthly payments.

]]> By: Neal Frankle http://wealthpilgrim.com/should-you-pay-off-your-home-mortgage/#comment-17 Neal Frankle Fri, 06 Feb 2009 05:49:39 +0000 http://www.wealthresourcesgroup.com/neal-talk/?p=104#comment-17 Absolutely. I would look at the costs of the loan to determine how long it would take to pay for itself. In other words, say you owe $300k and you can shave 1% off the rate. That saves you $3000 annually in interest costs. So if the cost of making the loan is $3000, it pays for itself in 12 months. I'd want to know what the costs are but assuming they are in line, I'd go for it. Good question. Thanks Absolutely. I would look at the costs of the loan to determine how long it would take to pay for itself. In other words, say you owe $300k and you can shave 1% off the rate. That saves you $3000 annually in interest costs. So if the cost of making the loan is $3000, it pays for itself in 12 months. I’d want to know what the costs are but assuming they are in line, I’d go for it.

Good question. Thanks

]]> By: mcravets http://wealthpilgrim.com/should-you-pay-off-your-home-mortgage/#comment-16 mcravets Fri, 06 Feb 2009 00:28:52 +0000 http://www.wealthresourcesgroup.com/neal-talk/?p=104#comment-16 How about refinancing to shorten the time to payoff? I have 24.5 years left on a 30-year fixed, 5.75% mortgage. Suppose rates have lowered enough that I could have the same payment, but knock off 5-10 years? Would that be a wise move? How about refinancing to shorten the time to payoff? I have 24.5 years left on a 30-year fixed, 5.75% mortgage. Suppose rates have lowered enough that I could have the same payment, but knock off 5-10 years? Would that be a wise move?

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