Question on making my house payment... (1 Viewer)

[Todd Hochard]

No, it can't. If you're talking a mortgage at 6%, vs. savings at 2%, that doesn't add up.
You are likely better off in the stock market, as I noted in my first post.

 

[John Alvarez]

You also have to look at whether your paying PMI because of the debt to value ratio. That little extra adds up too.

 

[Scott Merryfield]

One other thing to consider on saving money on interest by paying off your mortgage early is that mortgage interest is tax deductible, so a 6% interest mortgage will be lower after taxes. The exact amount will depend on your tax bracket. That means you need to earn even less by investing that additional principle payment elsewhere to be ahead.

Of course, those investment earnings may be taxable, depending on how they are invested.

 

[Tim Abbott]

Patrick G-

Please take a moment to read the fine print. When you get into the details, it is not really a good deal at all. You will likely find that even though they take half a payment every two weeks, they still only apply payements to your mortgage once a month with an additional contribution of the extra funds once a year (usually at the end). I'm generalizing, but in my experience this is how the majority of the programs work (90%+).

Unless you have a great deal of difficulty budgeting your own money, you will be best off skipping this "opportunity".

Tim