Ask Bob Roberds: Mortgage Financing

Cannot be described through mere words.

Moderator: broberds

Postby broberds on Fri Nov 16, 2001 7:12 am

Definitely go for the lower-payments-longer-time thing. Sure, you do pay a bit more in interest, but you should think of that as money well spent on a reduced stress level every month.
On the other hand, <I>stay away from the brown acid!</I>
<P>------------------
Bob Roberds
<A HREF="http://www.soaprope.com" TARGET=_blank>Soap on a Rope</A>
User avatar
broberds
Keenspot Despot
 
Posts: 1230
Joined: Thu Mar 16, 2000 12:00 am
Location: Durham, NC USA

Postby Shepherd on Fri Nov 16, 2001 8:07 am

Hi Bob,<P>I'm taking time out from my busy mollusk-molesting career to bend your ear re. a financial situation I've gottem myself into.<P>I'm in a position to lower the interest rate on my mortgage, and have basically two options: one, to pay exactly the same amount per month and get through the mortgage FASTER, or to pay LESS every month and keep the same end date for the mortgage. <P>Would the pay-off-faster plan be more beneficial in terms of savings on compound interest, or should I stick with the same mortgage termination date and lower the stress level of my monthly payments?<P>Thanks!<P>------------------
Matt Shepherd
Writer, <A HREF="http://manmancomics.keenspace.com" TARGET=_blank>Man-Man Comics</A>
User avatar
Shepherd
Grand Poobah Keenspotter
 
Posts: 747
Joined: Mon Mar 19, 2001 12:00 am
Location: Sherbrooke, Quebec, Canada

Postby splunge on Fri Nov 23, 2001 5:28 am

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by broberds:
<B>Definitely go for the lower-payments-longer-time thing. Sure, you do pay a bit more in interest, but you should think of that as money well spent on a reduced stress level every month.
On the other hand, <I>stay away from the brown acid!</I>
</B><HR></BLOCKQUOTE><P>I'd have to disagree with you there. Seems you've forgotten to factor in the effect of inflation.<P>And as for the mortgage thing, it depends on what you do with the money you save with lower payments.
splunge
Keenspotter Supreme
 
Posts: 29
Joined: Tue Oct 03, 2000 11:00 pm

Postby Lee Herold on Mon Nov 26, 2001 4:15 am

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by splunge:
<B>it depends on what you do with the money you save with lower payments.</B><HR></BLOCKQUOTE><P>Hookers and beer.<P>------------------
---Lee
<A HREF="http://www.choppingblock.org" TARGET=_blank>Chopping Block</A>
...He knows you're online.
User avatar
Lee Herold
Grand Poobah Keenspotter
 
Posts: 715
Joined: Wed Aug 23, 2000 11:00 pm
Location: Pittsburgh PA USA

Postby broberds on Mon Nov 26, 2001 7:54 am

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Lee Herold:
<B> Hookers and beer.<P></B><HR></BLOCKQUOTE><P>I do that with the money <I>intended</I> for the payments.
<P>------------------
Bob Roberds
<A HREF="http://www.soaprope.com" TARGET=_blank>Soap on a Rope</A>
User avatar
broberds
Keenspot Despot
 
Posts: 1230
Joined: Thu Mar 16, 2000 12:00 am
Location: Durham, NC USA

Postby Shepherd on Mon Dec 03, 2001 5:31 am

After talking to an accountant-type who laid it all out for me, I realized it was a matter of saving about $18 per month with lower payments, with saving over $2,000 in interest by paying it off ASAP. So I went with the latter.<P>This means I can go with a real nice hooker and a Unibrau beer at the end (Quebec beer...real good) rather than One-Eyed Barb and a Pabst every month.<P>Totally against my usual "Barb in the hand" mentality, but what the hell.
<P>------------------
Matt Shepherd
Writer, <A HREF="http://manmancomics.keenspace.com" TARGET=_blank>Man-Man Comics</A>
User avatar
Shepherd
Grand Poobah Keenspotter
 
Posts: 747
Joined: Mon Mar 19, 2001 12:00 am
Location: Sherbrooke, Quebec, Canada

Postby broberds on Mon Dec 03, 2001 9:24 am

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Shepherd:
<B>After talking to an accountant-type who laid it all out for me, I realized it was a matter of saving about $18 per month with lower payments, with saving over $2,000 in interest by paying it off ASAP. So I went with the latter.
</B><HR></BLOCKQUOTE><P>Well geez, you didn't mention you'd only be saving 18 bucks a month. I mean, like, <I><B>DUH</B></I>.
<P>------------------
Bob Roberds
<A HREF="http://www.soaprope.com" TARGET=_blank>Soap on a Rope</A>
User avatar
broberds
Keenspot Despot
 
Posts: 1230
Joined: Thu Mar 16, 2000 12:00 am
Location: Durham, NC USA

Postby Shepherd on Tue Dec 04, 2001 7:09 am

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by broberds:
<B> Well geez, you didn't mention you'd only be saving 18 bucks a month. I mean, like, <I>DUH</B></I>.
<HR></BLOCKQUOTE><P>I know, I know...I felt really stupid after the accountant-guy pointed it out, too. I was thinking it would be, like, over $50 or something, but I guess I'm on such a short-term mortgage that 80% of every payment goes to principal and the interest rate fluctuations don't really make THAT much of a difference.<P><P>------------------
Matt Shepherd
Writer, <A HREF="http://manmancomics.keenspace.com" TARGET=_blank>Man-Man Comics</A>
User avatar
Shepherd
Grand Poobah Keenspotter
 
Posts: 747
Joined: Mon Mar 19, 2001 12:00 am
Location: Sherbrooke, Quebec, Canada

 

Return to Soap on a Rope

Who is online

Users browsing this forum: No registered users and 1 guest

cron