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To: Skinn_dogg

Paying extra money on your mortage, especially in the early years, can knock off years of payments. I don't know where you got your idiot information, but it's not correct. Besides, living in a paid off home is heaven. You finally have the financial freedom that makes living easy and comfortable. Taxes and insurance only cost me about $1,200.00 a year in Georgia on a 1600 sq. ft. Ranch on about an Acre lot.


155 posted on 03/29/2005 2:52:45 PM PST by herkbird (PAIN SUCKS and my Pain meds are insufficient to kill it.)
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To: herkbird

Herkbird,

I understand that it can knock a few years off of your mortgage, but you have to look at the big picture.

In the year 2000, if you had placed an extra $100 a month on your mortgage for a 30 year mortgage you would have paid off the mortgage in approximately 23 years.

Your mortgage payment never goes down. It stays the same no matter how much extra you pay on it, so your $1000 house payment is due every month up to around 2023. Well in 2023 $1000 is worth a lot less than it is in the year 2000. So you save an extra $84,000 in house payments those last 7 years. If you invested that extra $100 a month into your 401K or another investment for 23 years, your going to have at least double your $84,000 you saved on paying off your house early.

Paying extra money on your principal of your home is not the best investment.


166 posted on 03/31/2005 11:02:18 AM PST by Skinn_dogg
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