Forums » Getting Out Of Debt

Home Mortgages

    • 3299 posts
    July 17, 2015 8:33 AM PDT

    Home mortgages are one of the accepted debts to take on since house costs can be too far out of budget for saving up to pay cash. Do you have a home mortgage?

    How much do you still owe? Have you paid extra so you pay less for your home?

     

     

    • 1275 posts
    July 17, 2015 8:40 PM PDT

    DH and I discuss this topic all the time. We switched from a 30 year loan to a 15 year loan not long ago. He said that if we would've been able to do that 15 years ago, we could've paid this place off by now.. With the new loan, we hope to pay it off in less than 15 years. We put an extra $100/mth towards principal.

    • 3299 posts
    July 19, 2015 9:42 AM PDT

    How long had you already paid on the loan, Lisa?

     

    • 2792 posts
    July 19, 2015 10:32 AM PDT

    I bought my house in 1986.  I have about 10 more payments to go.  I wish I had understood what my Sgt. told me in 1986 about paying an extra payment every month. I didn't understand that he meant paying the principal.  I thought he meant a whole payment and knew I couldn't afford that.  Of course had I done that, ex-husband probably would have tried to get the house in the divorce but equity was so low he didn't try.

    As it was, I had too fight the mortgage company to get it in my name.  They didn't/wouldn't do it until order to do so by a judge.

    kim

    • 3723 posts
    July 19, 2015 10:46 AM PDT

    we put a little extra on our mortgage each month ..not much $100 but so far in a couple of years ..shortened it by 3yrs. basically works out to one extra months payment a year. 

    • 2082 posts
    July 19, 2015 6:34 PM PDT
    No mortgage debt, it was paid in full 2009. I do still have some "bad" debt, however, that I am trying to aggressively pay off. If things go as planned (and they rarely do) I will have the major debts paid off by the end of the year.
    • 1275 posts
    July 19, 2015 10:15 PM PDT

    Brandy- We've been in our home almost 15 years now. With the banks wanting their interest up front, homes cost twice as much by the time 30 years are up. We weren't able to go to a 15 year when we first purchased but once the rates dropped, a 15 year didn't cost much more per month than the 30 year. So, we went for it. Now, more of our payment goes towards principal.

       When rates dropped even further,we wondered if we could lower the payments even more by doing another refi, but the bank refused since DH is unemployed. DH said that we never miss a payment and we have many accts at the bank, but it didn't work. We have since moved our mortgage to a different lender.

    • 3299 posts
    July 20, 2015 5:49 AM PDT

    Lisa, were you able to cash in on a lower interest rate with the refinancing?

     

    • 113 posts
    July 20, 2015 11:41 PM PDT

    I don't have a mortgage. We bought a house about 30 years ago on a 15 year mortgage, then sold it after it was paid for and I was able to pay cash for this house with a little left over. I don't know if it makes a lot of sense over a period of time, but it really helps now to not have a payment of any kind.

    • 34 posts
    July 25, 2015 10:46 PM PDT

    Owned my own home 2001-2012. Was best move when I moved to be closer to my job as I was oncall. Neighborhood had few apartments except 'luxury' models and all double what I could spend. Managed to get house payment for half of apartment costs in area. Houses were 1950s so well made, even compared to new builds here that turned out to be really disappointingly cheap with lots of code violations & costly short cuts.

    Employment situations have gotten so bad, chose to sell house and just move around for a while looking at other employment options. Was going broke trying to keep it as pay went lower and lower in my city...job situations got so bad, it was just time to call it quits.

    Looking to buy again but still haven't found another reasonably priced town & good jobs...Only found situations I was not sure I wanted to deal with and chose to move on.

     

     


    This post was edited by misssupersaver at July 25, 2015 10:47 PM PDT
    • 1275 posts
    July 26, 2015 7:26 PM PDT

    Brandy-  The bank that held our mortgage wouldn't let us refi since DH was unemployed.  When DH found a job and was working for 3 mths, we went to a different lender to see if we could do a refi.  They said we could! So, we did that and lowered our interest by 1.25%.   We also switched to a 15 year loan. 

    Our home has gone up in value since the refi and so has our property taxes. 

    DH is looking for work and at one time, we would've picked up and moved out of state, if he had a job offer. We've done that several times before and have found out that after all of that, the jobs aren't permanent.  Selling and moving is so stressful. DS1 is starting college and we will try to make things as stable as possible for as long as we can.

    • 3299 posts
    July 27, 2015 6:59 AM PDT

    Lisa, I can sympathise. My husband works in an industry where contracts can come and go. We have been moving around every couple of years or so and it is very stressful with kids.

    We have spent the better part of this year living in separate states. We are hoping to be able to be together as a family again by fall.

    • 2022 posts
    July 27, 2015 7:46 AM PDT

    In the Depression, men left for work.  Here in Minneapolis, I saw a lot of families where the dad or mom would go up to North Dakota to work the oil industry. It is sad when houses leave us trapped and when we can't find work locally.  I do feel somewhat "trapped" by being in a house and a mortgage. I think I would eventually like to sell and be more mobile again.  My youngest is 8, though, so I don't see that happening for a while. 

    • 1275 posts
    March 27, 2017 12:23 AM PDT

    We recently did another refi. The appraiser came and our home increased in value by 50% since we purchased it in 2001!!  Wow. He had lots of nice things to say and we were so happy. It's a small home at 1400 sq ft with a partial finished basement to come to about 1750 sq ft living space.

    DH had a phone interview and we hope it will then be a personal interview. That would be so great. 

    • 3723 posts
    June 1, 2018 7:21 AM PDT
    up here in Canada because housing prices have gone nuts, they have recently bought in new rules for getting a mortgage. you have to able to show that you can handle a higher interest rate of 5.25 % instead of 2.25 % now. so you qualify for less of a mortgage plus you have to have a bigger downpayment.

    because of the housing going nuts our place has increase 4x the original price we paid for it.
    This post was edited by marthamfi at June 1, 2018 7:22 AM PDT
    • 1275 posts
    June 1, 2018 6:08 PM PDT
    Martha- Same in the USA. After the 2008 collapse, getting a mortgage was pretty much impossible. Today, there are about 10 banks that are doing sub-prime loans again, with 2 of them being fairly large banks. Interest rates are climbing as well.

    Our latest refinance sent out appraisers (2) and we increased our value again by another 15%. There are many areas of the country that have seen house prices and rentals skyrocket.

    We have 4 homes up for sale on the street. The house next to us sold a couple of months ago and is getting $2400/mth in rent. It's a 3 bedroom/2.5 bath and 1700 sq ft with an unfinished basement of 800 ft.
    • 3723 posts
    June 1, 2018 8:06 PM PDT
    sounds like here with the rents. the new mortgage rules came in a month or so ago. you would think people would know better then to do sub prime again