Should I Refinance Or Pay Extra On My Mortgage?

Показать описание

Explore More Shows from Ramsey Network:

Ramsey Solutions Privacy Policy

Рекомендации по теме

Комментарии

Today is my first day of being debt free! Yea! 60 years old & finally! Hardly any savings but out of debt! Feels great!

patriciacrossley

I got a mortgage for 30 yrs. Made extra payments as I could. Paid it off in 19 yrs.

azteca

I think always get a 30 year and treat it as a 10-15. Just in case life gets hard and you need to make the smaller payment.

vasaguy

Jeff actually knocked it outta the park in hindsight with interest rates.

nskr

I feel like getting a 30 year is smarter than a 15 at the same rate. With a 30 year your payments are less but you can make additional payments. You can always pay it off quicker with additional payments. If something happens and money is tight it will be easier to pay the minimum for a 30 year than a 15 year

LuckyC

Ramsey is spot on! All my co workers call me cheap or tight because I don’t spend a lot money. I’m thinking in future to get out of the hamster wheel

irietropicals

Refinance requires closing costs. Thats extra thousands that could have went to the principal

Heritagepostfarms

I'm so happy not sure how many years I did it but paid off my house!! DEBT FREE!!

mirthfulllaugh

Where I worked observing several thousand coworkers over twenty years it seems the ones that paid extra to principal were done with mortgage in 5-15 years and retired at age 50-62.
The coworkers that refinance are paying mortgage for 30 or more years and still working.

blackworldtraveler

I have purchased a few homes. I did take a 30 year loan but with each loan I would print out an amortization schedule using the interest rate and year length in my loan. (Some banks will give to you). I would then add additional principal payments to my monthly mortgage payments. In the remarks section of my check I would wright “Additional payment to principal’”. Doing that I probably had a 10 year mortgage the way I did it, but a lower payment if I had a bad month. I had a thrill when I took the papers down and hi lighted each month how many payments I made that month with just adding extra….but I was keeping track.

laurenandreas

Perfect example of why we need to have basic life finances classes in high school. I cannot even believe people would not understand the concept to pay extra versus refinancing to a 3% higher rate.

johnt

It still blows my mind how many home loan seekers don’t really understand how amortized interest works.

williamb.

My Father taught me this 35 years ago. He was only a High School grad. We today unfortunately lack simple common sense and are being dumb ed down daily. Dave is spot on.

bille

Setting up investments and extra principal payments on auto is the way to go. Then you forget about it and get used to the lower income because the money is already going to where it needs to be. I've got the bad habit of investing what i have left after a month of expenses so i spend more during the month. Pay yourself first!

davidh

At 2.5% mortgagee rate he is better off simply investing the difference into an index fund covering the S&P or something similarly broad. This of course assumes the person is disciplined enough to do that and manage their finances well. If they aren't then yeah, they should pay off the house ASAP.

But in an inflationary environment paying off such a low rate early is actually costing you money.

mattcollins