UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next
Author: cconnell11 Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 127676  
Subject: Magically evaporating mortgage? Date: 11/4/2003 12:23 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi -- Friends of mine just visited a mortgage broker for help in buying their first house. The broker told them that if they pay JUST ONE MONTH'S extra mortgage payment in the first month of the loan, it will cut the term of a 30-year mortgage by 8 years! Not only that, but the broker told them that if they make double payments for the first two months, it will cut the term of their loan by 16 years! Supposedly, after just making the double payment in the first one or two months, they can make the normal payment for the (now drastically reduced) term of the loan.

I can't believe this could be possible! But if it is, I wish I'd known about it when I got my mortgage 11 years ago!

Is this a little-known but brilliant strategy, or is it magical thinking? And what should my friends make of this mortgage broker's advice?
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (22) | Ignore Thread Prev | Next


Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.