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yes_its_him t1_iya71vh wrote

Yes, in almost all cases (where there is no prepayment penalty)

Of course you would have to come up with the money, and couldn't use it for anything else

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Mysunsai t1_iya73cs wrote

Without checking any of your math, yes, that’s pretty much how it works.

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The0Walrus t1_iya7i9p wrote

Yeah I assume give or take some small fees here and there roughly that's where I'm at. Thanks!

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kylejack t1_iya7cd0 wrote

Yes, that's right.

Though the math wizards here will tell you that you actually cost yourself money, because you can instead invest that money in the market and make more over the 29 years.

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nolesrule t1_iya7ifh wrote

The amount of interest you'll pay will depend specifically on when you make the payments. Since interest gets calculated on the remaining principal balance for each payment (the specifics of the calculation depend on the loan type).

If you pay it off evenly then you'll pay about $2200 in interest over a year. If you make minimum payments and lump sum at 1 year it'll be closer to your calculation.

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yes_its_him t1_iyadb8v wrote

>you'll pay about $2200 in interest over a year.

More than that with the loan parameters here

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nolesrule t1_iyaswn8 wrote

It was back of the envelope math, because if you pay it off in 12 equal payments the average balance per month will be approximately but not exactly 50% of the starting balance.

Using an amortization calculator, if you make 12 payments of $8946.74/month you will have it paid off with a total paid of 107360.88 which is 2360.88 interest, which isn't all that far from my envelope math.

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yes_its_him t1_iyawcpo wrote

I assumed they just paid the minimum until paying off the balance month 12, since that aligns with their numbers, but it could be interpreted otherwise.

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nolesrule t1_iyazxcj wrote

Yeah in that case it'll be closer to the $4000. But that's why I was asking more about the details of the planned paydown schedule.

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MDfoodie t1_iya9k5h wrote

So you can come up with $100k in 12 months but need the loan now..?

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MikeWPhilly t1_iyaivcp wrote

It sounds like he is just trying to figure out how much to save on a heloc or construction loan paid early. would sya house but it seems to cheap for housing these days.

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The0Walrus t1_iyaw9a5 wrote

My mom passed away a while back. She wasn't very good with money so when my dad passed away she racked up a ton of debt and then paid off her debts with a home equity loan.

The house was bought for 125k. it's valued at 600k roughly. I know I don't have to pay her debts but if I want to keep the house, which I do want to since it's right by NYC and I love the area. There's a lot of stores around. I rent the basement to a friend. I am a registered nurse and I pick up a ton of overtime so I can pay this off in 1 yr. I don't want to have the debt/mortgage.

Once I pay the debt off I only pay 670/mth for property tax and about 140/mth for home insurance and that's really it. I would never find something like that with renting or buying property.

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