The best option is to determine how much excess cash you have to put toward the mortgage, and then use that money to pay down the principal as soon as you can. In your situation, that will save thousands if not tens of thousands of dollars in interest over the remaining term of the mortgage.
Next, you need to determine how much of a monthly payment you are able to make and we can figure out how long it will take to pay off the remaining balance. There should be no reason to refinance in these circumstances unless you can obtain a lower interest rate. If there's a no fee refinance option, that reduces your interest rate then it makes sense.
I can pay the whole thing and have a little bit left over. Should I pay the whole thing?
That's assuming that you would still have a significant amount of principal to amortize - ie pay off.
total principle balance is 240,000
should I just pay that amount?
The only reason I wouldn't pay the whole thing off would be to make sure I had an adequate cash reserve for emergencies. Generally, we advise a minimum of 6 months of expenses, assuming no income during that period. This might be the chance for you to establish that cushion if you don't already have that set aside.
I would have around 50,000 left
Also, are you employed? Do you have any dependents?
only my self and yes i am employed
How much of the mortgage were you paying before you lost your co-borrower?
I will still be paying 1,700 a month
In this day & age we have to ask "Do you feel your job is secure?"
with 2000$ a month salary
not really my job is not secure
The question is, how much of the payment WERE you making before?
If i pay off the whole thing i would have 50,000 in the bank and probably have to pay for 800$ a month
I am on time everytime having food stamps and a side job
I would loose my 58$ a month food stamp if I do pay off the whole thing
When you had the co-borrower was the payment split? Ie how much were you paying personally?
I was paying the whole thing my self my mom had cancer didnt work she was helping with 300$ a month SSI
OK, if you pay it off you'll have that additional cash flow every month to use as a cushion also.
I thought the food stamp benefit was based upon income & dependents rather than expenses?
It changed for some reason
I also qualify for 58$ a month once my mom passed away
I earn 2000$ a month with no dependent now
All that said, I'd pay it off; that way you'll only have to deal with real estate taxes & homeowners insurance & the other normal household/maintenance expenses
How old are you?
OK, well you have your whole life ahead of you; you'll be starting off with a big boost having a house all paid for at such a young age,
Is the house in your name yet?
Are you an only child?
I am the primary name and she was the co-owner
When did your mom die?
I am in proccess to remove her name
Sorry to hear that; its tough no matter when; I lost my Dad at age 21 & my mom to cancer 20 years later.
Do you have an attorney handling it?
ya, lost my dad when i was 16
You are her only heir?
Only problem is the car is in her name
and her bank account has like 200 dollars
Are you her only heir?
yup only heir
There should be an abbreviated procedure for the car.
Usually if you are the only heir you can either sign an affidavit to that effect or if she had a will a copy of that; the way to solve that the simplest is to check with the Insurance agent or Company & they will know how that is handled in your state.
Of course the lawyer should be able to do that too, but sometimes they like to complicate things when there's no need to;
ok i will ask the car insurance company
that's your best best.
and I will ask the bank on wut to do with her checking account
and maybe a probate would not be needed?
Have you gone to college or a community college for an associate's degree in something that interests you?
thats the plan, community college part time and full time work
Could you sign on the checking account?
ya ya I have everything i can even take her money
can i do that?
Technically no, once she died. But for a few hundred $, I'd just write a check & deposit it in my own account.
can i just do a transfer, i have set up a transfer
If all she had was the car & a few hundred $, there shouldn't be a probate required anyway
ok sounds good
If the house wasn't owned jointly with right of survivorship but was held as tenants in common, her portion of the house would have to go through probate to clear the title for you.
If it was held the former way, all you would need to do is file a death certificate
Was she on Medicaid?
ya we are in joint and yes she was on medicaid
but she was only 47 so I dont think she has to repay
joint or tenants in common?
so they can't get it anyway; it is your by operation of law;
the lawyer should be squaring this away for you; trust me its no big deal & should cost you very much
should = shouldn't
If I can help you anymore, just ask for me "Steve G" usually works if you put that at the beginning of your question.
ok sounds good, thanks for all your help.
Do you have any aunts or uncles?
I do they all in another country
Oh boy, well you'll need to get "adopted" by some family to spend the holidays with; don't let yourself isolate; force yourself to keep moving; school is one of the best ways;
I will do my best to have some friends and school for sure.
She also has some money in another country and I will probably get a lawyer in that country to take care of it in the future
Good, its none of my business, but I've done a lot of financial planning over the years & you're in a tough spot, so look at all the pluses & work with the cards you've been dealt. Good luck, you'll do fine, you've got a good head on your shoulders; I can tell by your questions................
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Thanks :) I try not to make a stupid investment and just pay off the house
Very Smart thinking, keep it up.
Thanks for the chat. Appreciated.