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JodyChunder
2011 Dec 4, 3:23pm
Some people want to pay off their mortgages simply for peace of mind.
this man speaks the truth.
JodyChunder
2011 Dec 4, 3:28pm
here's a lot of hobo talk.
try to be understanding TDR. some folks are angry and some times some sparks fly is all.
I purchased our first home in May of 2009 ... I had no real clue about how much of a racket interest was but have recently found out due to hard times.
I got laid off in 2011 and fell behind in my payments in May of 2012 ... anyway, the original loan was for 265,000 I discovered that the payoff today is 258,000 ... So in 36 months of $1900 payments I've only taken 7k off of my principle - WHAT A FN racket! That comes close to 70,000 profit for the bank! The bank that refuses to work with me to get caught back up on payments!
I think Ill stop payments and let them take the house from me and rent the rest of my life. Again - What a racket!
KILLERJANE
2012 Jun 23, 3:24am
Bentover, don't you wish there was a money back return policy?
GUESS WHAT! There is. You may qualify to stay in your home for up to 3 years without paying any note!
FINE PRINT. Please be advised that certain 2012 expiring debt forgiveness as of 12/31/12. Please consult an attorney. Save all your cash and don't pay anything but utilities. Do not keep it in the bank. And pray the fiat currency stays afloat. Then pay cash for a rentable cash flow property anywhere or buy something tradable for the hard times that could be ahead.
I purchased our first home in May of 2009 ... I had no real clue about how much of a racket interest was but have recently found out due to hard times.
I got laid off in 2011 and fell behind in my payments in May of 2012 ... anyway, the original loan was for 265,000 I discovered that the payoff today is 258,000 ... So in 36 months of $1900 payments I've only taken 7k off of my principle - WHAT A FN racket! That comes close to 70,000 profit for the bank! The bank that refuses to work with me to get caught back up on payments!
I think Ill stop payments and let them take the house from me and rent the rest of my life. Again - What a racket!
BayArea
2012 Jun 24, 8:23am
I purchased our first home in May of 2009 ... I had no real clue about how much of a racket interest was but have recently found out due to hard times.
I got laid off in 2011 and fell behind in my payments in May of 2012 ... anyway, the original loan was for 265,000 I discovered that the payoff today is 258,000 ... So in 36 months of $1900 payments I've only taken 7k off of my principle - WHAT A FN racket! That comes close to 70,000 profit for the bank! The bank that refuses to work with me to get caught back up on payments!
I think Ill stop payments and let them take the house from me and rent the rest of my life. Again - What a racket!
Another reason housing is not all it's cracked up to be...
Pay your mortgage for 359 months, lose your job during that last year, and default on your 360th payment.
Watch what happens to your house.
Similarly, become unable to pay off your property tax after your house is paid off and watch what happens.
Real estate can be very good for some. But yes, for many, it's not all it's cracked up to be.
tatupu70
2012 Jun 24, 10:01am
Pay your mortgage for 359 months, lose your job during that last year, and default on your 360th payment.
Watch what happens to your house
Uh, why wouldn't you put it up for sale?
bubblesitter
2012 Jun 24, 10:23am
So in 36 months of $1900 payments I've only taken 7k off of my principle - WHAT A FN racket!
You got it. Unfortunate for you that it was a little late. Now imagine you had rented that place and saved the money for future DP or cash only purchase. Rule of the thumb is escape from Banks,Realtor,Govt. cartel. Never buy if the morgtage is not the same as rent for the same place,or at least put enough DP to make your mortgage payment same as rent - assuming that you are sure you are not buying a declining value RE,which is very hard to find in this market. GL to you.
Uh, why wouldn't you put it up for sale?
I wish I had done that months ago - course no quick sales these days.... I imagine Ill just end up having horrible credit for the next 10 years. :( Really sucks was close to 800 for years then BAM its all washed away - been a real struggle finding the will to carry on.
« First « Previous Comments 61 - 69 of 69 Search these comments
Hi folks,
The topic is on mortgage loan amortization.
Although I am a homeowner and have plenty of experience with amortization of loans (I've just accepted that this is how the system works as have most people), I cannot shake the underlying feeling that soemthing is wrong here and the average person really gets the short end of the stick.
Given that the see-saw heavily favors the interest portion of the loan payment during the first 10yrs or so of the typical 30yr mortgage, the owner of the property is not only getting the short end of the stick by applying very little principle to the property during that time, but given that the average person owns their home only 5-7yrs, they are giving back nearly the entire loan amount after that short 5-7 year period... Of course there have been windows in time where property owners have gained a great deal of equity during a 5-7yr period, but in most 5-7yr periods of real estate history, any equity gained during that time is peanuts compared to the interest that was dished out during the same period.
Anyone know the history on loan amortization and when it became a generally accepted practice in real estate?
In the table below, I am illustrating the amortization of a $150K loan (4.25%) over 30yrs. Note that after your typical 5-7yrs of homeownership, you have paid:
Interest: $30,486 - $41,808
Principle: $13,788 - 20,177
Amount owed to Bank: $129,823 - $136,212
At the end of the 7yr period for example, you gave the bank $41,808 in interest, you paid $20,177 in principle towards the house, and you still owe them 87% of the original amount of the loan. Can the bank be positioned any better?
And yet we all sign up for this willingly, lol ?!
#housing