Wednesday, June 24, 2009

Prepayments Revisted

Yeah! The other buyer did come through and made the purchase yesterday. $55 was the result.

I've been busy this morning playing around with mortgage calculators to determine what effect our up and coming prepayments will make and if it will be worth it. So far it seems to be.

We know that when the renewal comes in 3 years or so, that mortgage rates will likely be higher. I am factoring that in and looking at what the payments will be at 3.5, 4 and 5% over a 5 year term.

I don't want to go longer than that to finish what is left but I want to make sure that the payments will fit what D is currently paying -- because if it doesn't, I will have to step in and I don't want to do that.

So the trick will be to put enough prepayment monies towards it so that the amount left in 3 years or so will fit nicely in a 5 year term.

Paid bi-weekly, the overall amortization will be 4 yrs 7 months with no prepayments and much quicker with. That will be my job.

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