Do you see this is working for you? Even though prime has gone down, I still do not know if I made the right decision with this since it's interest only. I feel like no matter how much we pay, that darn 10% never goes down! Cira - I'm STILL investigating! Spoke to a few brokers and it's 50/50 for us...
peabody
Posted:
Member since
Re: For those who have 80 10 10 loans...
For us, I do think it works in our favor. The interest is tax deductable, but we do overpay so we see it go down, we planned on that and worked that into our budget. Eventually we will refinance to a lock rate.
joeslauren
Posted:
Member since
Re: For those who have 80 10 10 loans...
Thanks peabody. That is exactly what we have been advised to do as well. Since the fixed rate is significantly higher still, we are coming out ahead so far. And when prime starts to rise, then we should refi into a fixed rate (if anything is still owed by that time). Granted, we have only been in the house 9 months and do at least double our payments but it doesn't seem to go down as much as I thought it should by now. I will be a happy camper during tax time bc like you said... it's tax deductible, but for now it's just annoying!
N&L2004
Posted:
Member since
Re: For those who have 80 10 10 loans...
WE have not closed yet, but we are planning to make monthly (maybe quesrterly ) contributions towards the principal, so hopefully it will go down.
when you guys pay extra...make sure you write on the check 'pay extra to principal' otherwise it goes to the interest and it will not bring the prinicpal down...
joeslauren
Posted:
Member since
Re: For those who have 80 10 10 loans...
good point erica. i believe that is what he does but i'll double check just in case! thanks girls!
