Qeustion on Mortgages...

[Solar7]

Does anyone have any info on a sort of program that allows you to direct deposit your paycheck(s) into a mortgage account...essentially paying your monthly, but allowing you to draw off the balance? And in doing so, it pays down your interest. My wife is asking me to put this up, so I'm having a tough time translating. Maybe someone has an idea here or heard of depositing directly into a mortgage account instead of a straight bank account. Any help would be appreciated.

 

[deputy dawg]

send a PM to "Lick".

(look up his info in the member directory)

 

[Solar7]

cool...I'll get it to him and see whats up. Thanks

 

[BoyJupiter]

If you mail your payment, you can specify exactly what you want to apply to interest and what should apply to PRINCIPAL. Of course, this mean that you will pay more a month, but its worth it. I've only had my house for a little under two years and I see the difference.

 

[kjxxxx]

It's a strategy used by some debt reduction programs. It's being sold on the internet mainly. They usually take care of it for you with their software.
It's something you can do on your own though. The problem is most people are not that disciplined and with the recent credit crisis may make it not for everyone.
Here is two ways you can approach it:
approach 1: You don't need you pay check to survive. eg: want to live off whoever make the least (you or girl) salary and use the other for debt reduction.
You direct deposit go to your account then straight to the morgage. The first check can go to the mortgage for the current month that is due which will cover the principal and the interest. They next checks you have go to the principal.
The way it works is you have to have a line of credit. So if you have a line of credit that is way lower than your mortgage rate.

2nd Aproach and it gives more bang for the buck. You need a line of credit that is lower than the mortage rate.
So you pay at the begining of the month the amout of your salary on the mortgage and making sure that the additional payment over the interest goes straight to the principal (not interest buy down). Then when you get your check you pay the line of credit. And if you want to get even more slick about making your money work; when your pay check comes you take it and put it into some safe interest bearing instrument for the days before the line of credit payment is due. Then pull it out and pay the line of credit when it's due.


Also if you are going to attack your mortgage this agressively, you might as well get a 15 year mortage which usually carry a lower interest rate.

Does anyone have any info on a sort of program that allows you to direct deposit your paycheck(s) into a mortgage account...essentially paying your monthly, but allowing you to draw off the balance? And in doing so, it pays down your interest. My wife is asking me to put this up, so I'm having a tough time translating. Maybe someone has an idea here or heard of depositing directly into a mortgage account instead of a straight bank account. Any help would be appreciated.

 

[Helico-pterFunk]

When I bought my condo (314k) in March '09 I had saved like Scrooge and worked like a shithead for 5 years. Went in huge on the downpayment and borrowed the remainder from fam' which I've paid back to 'em). I didn't wanna deal with the banks ... funny shit was ... initially my dad was having me look at places in the 400 - 440k range (mind you I'm single) ... and he was my sidekick the whole time as we searched for 6 months. Funny shit though ... I was like ... "pops, I ain't spending nearly half a mill' for a place for my damn self ... I didn't save that much, man."

 

[CybaCipha]

Do a google for Harj Gill

Do a google for MMA Account

I can't remember the others.

Just know that many have succeeded and many have failed using this technique. It's all about discipline.

 

[ineedafix jr]

If you mail your payment, you can specify exactly what you want to apply to interest and what should apply to PRINCIPAL. Of course, this mean that you will pay more a month, but its worth it. I've only had my house for a little under two years and I see the difference.

My wife and I did the same, but they allowed us to specify when making a payment online.

 

[Mixd]

I'm supposing that your mortgage company doesnt allow direct deposit? Some of the larger banks who are mortgage houses like Chase or Bank of America, you can just direct deposit your check into the bank then you can schedule the next day to transfer the money to your mortgage.

Another thing you can also look into if trying to pay off your loan faster is a bi-monthly loan. you can substantially pay off a 30yr mortgage by shaving in some cases 8yrs off. Paying a lot less in interest and having a house paid off in 22yrs.

Or can just pay an extra $100 a month towards your principal or whatever you can spare. You will shave years off a mortgage with just that for those that don't know.