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unvadim ,
Category: Finance
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how can i pay off a 30 year term mortgage with 23 years remaining

Resolved Question:

how can i pay off a 30 year term mortgage with 23 years remaining at 6.75%
Submitted: 5 years ago.
Category: Finance
Expert:  unvadim replied 5 years ago.

unvadim :

Hi

Customer:

Hello Unvadim

unvadim :

can you provide more details on your question?

Customer:

such as?

unvadim :

do you need a program ? or what answer are you looking for?

Customer:

not neccesarily a program. i need idea or formula to accelerate my mortgage to shorten the term

Customer:

are you there?

unvadim :

yes..... one sec

Customer:

ok

unvadim :

whats the sum of the mortgage?

Customer:

The balance due is 460000

unvadim :

hmm probably you will have to increase your monthly payment from aprox 2983 to 3286

unvadim :

thats not considering any addional charges.

Customer:

my monthly payments are 3406.35 now

unvadim :

hmm in that case I think you got the wrong section to post this question, this the programming section...

unvadim :

you will need probably the legal or finance section of the website

Customer:

why

unvadim :

in my opinion this is not a question which typicaly you would get answers in this section.

Customer:

ok can u refer me

unvadim :

ok, I will redirect your question to proper category..

unvadim,
Category: Finance
Satisfied Customers: 1174
Experience: 
unvadim and 2 other Finance Specialists are ready to help you
Expert:  DanielleCPA replied 5 years ago.

Hi and welcome to Just Answer! I'm happy to help answer your Finance questions.

 

How fast are you looking to pay off this mortgage?

Customer: replied 5 years ago.
ideally 5 years
Expert:  DanielleCPA replied 5 years ago.
And what was the original amount of your loan?
Customer: replied 5 years ago.
464,000
Expert:  DanielleCPA replied 5 years ago.
To payoff the mortgage in approximately you five years, you will need to pay an additional $5650 (approximate) in principal each month.
Customer: replied 5 years ago.
i have been told that there are ways to pay down your mortgage in 5-7 years without increasing the payments. Making payments at certain times in the month to avoid paying the high interest that is accrued monthly is also another concept. In addition to by weekly payments. The are man strategic ways and mathematical concepts that can be applied to figure this out. i was hoping that as a finance expert you may be able to figure ths out.
Expert:  DanielleCPA replied 5 years ago.

There is no legitimate way to pay off your mortgage within 6 to 7 years without drastically increasing your monthly payments. Anyone who tells you otherwise is probably scamming you or at least trying to sell you something.

 

However, you can shave 5 to 7 years off your mortgage by doing a couple of things. If you switch to biweekly payments (not all banks offer them), this would be like making 13 mortgage payments a year. Also, because you paying more often, then less interest would be charged on a monthly basis. Alternatively, you can make just one extra mortgage payment a year with similar results.

 

Also, 6.75% is a really high interest rate in today's market. I don't know if you looked into refinancing (maybe a 25 year loan since you have 23 years left). You could probably refinance at 5% or lower (rates are in the upper 4% right now). Of course, you will generally need to have some equity in your home, which I know in today's market is not likely the case. Refinancing at a lower rate will reduce your monthly payment and you can continue to pay your current payment so more is going to principal. If you qualify, this may be your best option.

Customer: replied 5 years ago.
If i pay my credit card before a certain date i ca
n avoid interest charge s isn't there some type of concept that would work with mortgage payments
Expert:  DanielleCPA replied 5 years ago.

No, mortgages aren't structured in the same way as credit cards.

 

On a credit card, you can avoid interest before a certain date because you are paying off the balance and therefore are not carrying a balance on which to accrue interest.

 

With a mortgage, there is always still an outstanding balance on which to accrue interest until the mortgage is completely paid off.