With your first example, my goal now is to check my amortization schedule and aggressively pay down the balance to where my normal payment pays more to principal than interest. Then I'll switch over to retirement investing.
William - sounds good! Paying extra in the beginning of the amortization goes a long way! Just be sure to make that payment of extra - separate- from your normal payment. And tell lender its to PRINCIPAL. Be sure on your next statement they don’t accidentally apply to escrow or something. FYI
Thanks for the honest straight forward information, and not trying to sell snake oil like some of the other youtubers who are clearly just out to take some of the pie.
Thanks for taking the time to comment. Appreciate you! My goal is to educate everyone! I have done this a LONG time (28 years) and my passion is getting good , accurate info to people ! 😀
What if you just want to get 3 months ahead so if you loose your job. You won't have to pay for 3 months. Like if there was another lock down and your not an essential worker. How would you go about doing that?
Before you do this you MUST call them. Lenders usually think that advance payments are you paying extra. YOu are responsible to pay each month, on the 1st (to the 15th). If I were you, just keep the money put aside on your own in savings, same result. That way it lessens the chance of error and mis application
I have a dumb question. To clarify the example of making one extra principal only payment a year, you're saying that the one extra payment reduces the loan from 30 years to 21 years? So wgat happens when you make an extra payment a second year in a row? Does that cut the loan down a number of years too?
Hi Enoch! I know paying 1 xtra per year takes off about 7-8 years, so two should be double that. I have a free digest you can put your address into, and lets you play around with mortgage payments/payoff etc! hmbt.co/2zpP06L
Hello, Question... sorry im new at this and a soon to be first time home buyer. is it best to pay two separate payment (one of mortgage of course) and pay the extra payment for principle? or can you add the extra amount with the total mortgage and let the bank/lender know the extra is for principle?
Hi Mr. Wright!!! this is an excellent question! Depends how you are paying. If you are doing a check , physical in the mail, 2 separate checks for sure. Less chance of input error. be sure in the memo you put ' PRINCIPAL'. If you pay on line, it lets you click' extra payment' and identify where it goes. I hope this helps!
With your first example, my goal now is to check my amortization schedule and aggressively pay down the balance to where my normal payment pays more to principal than interest. Then I'll switch over to retirement investing.
William - sounds good! Paying extra in the beginning of the amortization goes a long way! Just be sure to make that payment of extra - separate- from your normal payment. And tell lender its to PRINCIPAL. Be sure on your next statement they don’t accidentally apply to escrow or something. FYI
@@LoanWithJenshould you write 2 separate checks for this purpose? Also do you know how many years you can save on a 15yr loan with this process??
This is the best explanation of how extra payments affect your mortgage that I found. Thanks a bunch!!
Thank you Aaron for the comments!!!! Keep watching! :)
Biggest impact on paying extra is at the beginning of the loan.
YES!!!!!!!!!! You are correct! Thanks for watching
Thanks for the honest straight forward information, and not trying to sell snake oil like some of the other youtubers who are clearly just out to take some of the pie.
Thanks for taking the time to comment. Appreciate you! My goal is to educate everyone! I have done this a LONG time (28 years) and my passion is getting good , accurate info to people ! 😀
Thanks Jen! Happy New Years!
Happy new year! THanks for watching!
One extra payment a year is not going to knock a 30 year loan down to 21 years. It will take about 4-5 years off the loan.
if you pay it biweekly, then it will knock to 21, If you just pay 1 time a year, extra, will not knock down as much, that is true.
How/where do you get an amortization schedule this video is great
Hi Tammy! Thank you so much. YOu can find them online by just doing a search. Many sites have them. if you need further help lmk!
I make 2 extra payments a year over the course of 12 months by paying additional principal only every month
Great job!!!!
Thanks for info.
THank you for watching!
Thank you ❤
Thank you for the explanation! :)
Thanks for watching Akyuna!
What if you just want to get 3 months ahead so if you loose your job. You won't have to pay for 3 months. Like if there was another lock down and your not an essential worker. How would you go about doing that?
Before you do this you MUST call them. Lenders usually think that advance payments are you paying extra. YOu are responsible to pay each month, on the 1st (to the 15th). If I were you, just keep the money put aside on your own in savings, same result. That way it lessens the chance of error and mis application
L😊@@LoanWithJen
I have a dumb question. To clarify the example of making one extra principal only payment a year, you're saying that the one extra payment reduces the loan from 30 years to 21 years? So wgat happens when you make an extra payment a second year in a row? Does that cut the loan down a number of years too?
Never a dumb question! The comment I made assumes 1 extra pmt every year, for 21 years( because then it would be paid off)
What if you make 2 extra payments instead of 1 extra payment? How many years do you cut off? Thanks
Hi Enoch! I know paying 1 xtra per year takes off about 7-8 years, so two should be double that. I have a free digest you can put your address into, and lets you play around with mortgage payments/payoff etc! hmbt.co/2zpP06L
Hello, Question... sorry im new at this and a soon to be first time home buyer.
is it best to pay two separate payment (one of mortgage of course) and pay the extra payment for principle? or can you add the extra amount with the total mortgage and let the bank/lender know the extra is for principle?
Hi Mr. Wright!!! this is an excellent question! Depends how you are paying. If you are doing a check , physical in the mail, 2 separate checks for sure. Less chance of input error. be sure in the memo you put ' PRINCIPAL'. If you pay on line, it lets you click' extra payment' and identify where it goes. I hope this helps!
Very nice!
Thanks for the watching!
Beautiful thumbnail
Thank you
Welcome!
Where do u live.? I have do whole my life no one charge me anything.
Hi thanks for watching. Texas. I’m not sure I understand your comment. The video was about how your loan balance goes down when you pay extra