I learn such great things on this site. Here is my question, is it worth it to overpay on your mortgage if you do not plan on staying in that home? In other words, is it worth it for me to do this in my condo if I plan to buy a house in the near future?
peabody
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Re: spinoff to overpaying mortgage...
Posted by christy
I learn such great things on this site. Here is my question, is it worth it to overpay on your mortgage if you do not plan on staying in that home? In other words, is it worth it for me to do this in my condo if I plan to buy a house in the near future?
IMO, Yes. WE just refinanced, we had a 1st mortgage and a line of credit. We always overpaid the line of credit. So when we refinanced we borrowed less.
Your goal on your next home is to borrow as little as possible and have the mortgage be manageable. So the more you make on your house, the more you will have as a down payment. Does that make sense?
christy
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Re: spinoff to overpaying mortgage...
Totally makes sense...thank you so much!
Jmg11
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Re: spinoff to overpaying mortgage...
IMO NO - not if you are moving soon - BUT no one can really give you a good answer for YOU - except a professional. This is a great question to ask an accountant. It all depends on how much you still owe/how much you want to spend on your new place/how much you have liquid, etc...
MrsJ
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Re: spinoff to overpaying mortgage...
IMO I have to say no also. If you are not planning on staying, I wouldn't overpay anything. Save your money instead and invest it or keep in in an account and gain interest on it. Then use that toward your downpayment along with any proceeds you have from the sale of your condo.
sophie78
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Re: spinoff to overpaying mortgage...
No. If you are staying a short time (like under 5 years) it won't matter.
Sassyz75
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Re: spinoff to overpaying mortgage...
I thought when you overpay it goes right to the principle, not the interest.. so wouldn't that increase equity?
KarenB
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Re: spinoff to overpaying mortgage...
Unless an investment pays more in interest than you are paying for your mortgage, you should add to your morgage payments.
i.e.
if your mortgage is 5%, and you earn 3% in a savings account or other place, then pay more towards your mortgage.
