Mortgage extra Payment Calculator

Very good point.

 

The sad truth is many people don't realize that making extra mortgage payments saves you money.

 

What's truly sad is that so many people don't pay attention to ANY of the important things in life that could affect them whether it's economics and finance, laws, their health, etc etc They either don't care to engage in critical thinking because it may be unpleasant or they are incapable of engaging in critical, independent thinking. That doesn't make them bad people but it's still very sad.

 

May be hard to believe, but there are also way too many folks, who don't think about any of the important stuff because it isn't cool or the in-thing to do. And, they make fun of those who do. Plenty right here in Maine. Very sad.

 

I always tell my kids that if you work hard at something you can accomplish anything. I tell them if your gonna be a ditch digger be the best ditch digger you can, don't worry about what others do or have. I also make it a point to tell them hard work won't hurt anyone. I know this isn't about personal debt, but I want to instill these things in them so they learn to be money wise as well. My mom was basically working poor and didn't teach me these things, but my great grandparents taught me a lot.

 

Wise thoughts Jet.

 

Can't take all the credit for the original thoughts.

 

Interesting thread. I have always believed that I do not really need money, it is the folks that send them bills in the mail that want my money. My wife and I are in our mid 50's and as of right now the only debt we have is a modest mortgage payment we have on this place we bought in 2008.I will never live long enough to see a 30 year mortgage payed of so I figure when I die, I win! Our payments on an acreage are less than it would cost to rent a 2 bedroom flop house apartment in town living next to a crack head. We bought what we could afford and not what the loan person said we had credit to afford! We lived and raised our 2 daughters in an old 7 bedroom farm house for almost 27 years that wasn't fit to live in but we lived for almost nothing but hard work and a willingness to work. Society as a whole wants every one to think that you should keep up with the Jones's next door. Credit cards are a major down fall of ever one that has money problems. New trucks and cars? Really? Worst investment ever made by any one if you sharpen a pencil and figure it out. My wife and I put together make less than any one factory worker at a near by tractor factory since we only work for 9 to 10 months outta the year. We garden, work, and live life. Dave Ramsey is an A Ho. I cant stand to listen to that guy.
Best financial advice I ever got was way back when I was in my early 20's. An old friend by the name of Don Jauque (Don was an old French Canadian Indian fur trapper)he told me to take 10% of every dollar I made and put it some kinda vehicle that made interest no matter how low the rates and forget you ever had that money. I took his advice. It took forever to see any return on the small amount of investment I was making but as the years went by, the amount grew. Next thing you know, when I needed a different vehicle or had a bill to pay, I didn't have to pay the man his interest on a loan. Then next thing you know I was putting money into a C.D. ladder type deal so if I did need money for some thing it was always there. Then we go back to when I bought this place in 08. Spent most of it on a down payment but saved my self a bunch on all the other B.S. like mortgage insurance and such. Started all over with the same simple plan. We are back to square one and beyond as of right now. Actually we are better off for the time being.
It really don't make no diff to me as I was born bald, nakid and poor and that's the way I wantta go out too.

 

I am going to be debt free several years before I retire. We are probably going to sell the big house we live in now and move back to the camp with better insulation and siding installed when we do. When we sell the big house we will be mortgage free, the camp and land is almost paid and will definitely be paid off with a garage built when we sell the house. A wood burning stove and wood burning insert will also be installed. I will have multiple fires that I can watch in several places in the house. LOFL. The tractor and any vehicles will be paid off as well.

But that will be when the kids are all out of high school. Which will be in another 10 years. Wife will work another 5 years from now at least and I will work another 15 to get me to 62. But I will try to retire when I am 57. We may also rent the big house in two units for the income to help us travel the United States a little while the weather is good and be home all the time during the 5 months of the winter. In the meantime I am going to live and have fun. I love to work out in the woods and on the property, yards, trails, etc. All the work I do is an investment in the future. Not paying someone else to do this saves a chitload of money and turning this into a more beautiful place will only increase it's value. It doesn't even seem like work to me.

 

Anybody ever stop and think how much money banks make off of a house during it's life expectancy?
Assume a house is built to last 50yrs. The average homebuyer lives in a home for ~10years . Appreciation assumed 3%, normal average interest 6.5%, 30yr fixed
Average median home price in 1975 $40k
1975 1st home buyer 40,000 purchase, $24,250 in interest paid, house sale price $53750

1985 2nd home buyer purchase, $53750, $32,600 in interest paid, house sale price $72,200

1995 3rd home buyer 72,200 purchase, $44,500 in interest paid, house sale price $97000

2005 4th home buyer 97,000 purchase, $58,800 in interest paid, house sale price $130000

2015 5th home buyer 130,000 purchase, $78,800 in interest paid, house sale price $175000

That's just shy of $240,000 in interest over 5oyrs.... on a house that started at 40k

 

Always wondered why bankers seemed to want to be my friend all the time...

 

We are close to having what was the original 30 year mortgage paid in 20. It has been refinanced twice to take advantage of lower rates and is now a 15 year load but I have been paying it off on an accelerated pace all along. Although in theory we can make more by investing the money instead of paying down the mortgage, having it done will allow a greater piece of mind and give us the ability to not need that second income. As soon as I'm done the mortgage I'm going to do increase my monthly automatic deposit into the Fidelity SP500 fund to about what my mortgage payments are.

My other piece of advice, most importantly to anybody just starting out, is to fully take advantage of any 401(k) or other retirement plan if it is available to you (assuming it is a well run plan). With the power of compound interest the money that you save between age of 20 and 30 will about equal what you can save between 30 and 65 when you turn 65, assuming you put the same amount in every period and get the same return on both accounts. UPS was my first job. When they offered the 401(k) I signed up and increased my contributions every time I got a raise by the amount of the raise till I was at the max. I only worked there for seven years. That account is still sitting there and I am amazed at the balance.

 

extremely sound advice as well. If you can resist the urge to increase your lifestyle on every raise you'll be way ahead down the road.

 

It's cause your a nice guy Stinny